ABSTRACT:Profit maximizers have reasons to agree with stakeholder theorists that managers may need to consider different values simultaneously in decision making. However, it remains unclear how maximizing a single value can be reconciled with simultaneously considering different values. A solution can neither be found in substantive normative philosophical theories, nor in postulating the maximization of profit. Managers make sense of the values in a situation by means of the many thick value concepts of ordinary language. Thick evaluation involves the simultaneous (...) consideration of different values: making sense of a value always involves knowing how to engage with it given the other values in the situation. This also goes for profit: maximization is only one way of engaging with the value of profit, and grasping whether maximization is appropriate involves considering other values. We discuss some consequences of our approach for stakeholder theorists and profit maximizers. (shrink)

The paper presents a renewed Habermasian view on transnational multi-stakeholder initiatives and assesses the institutional characteristics of the Equator Principles Association from a deliberative democracy perspective. Habermas’ work has been widely adopted in the academic literature on the political responsibilities of corporations, and also in assessing the democratic qualities of MSIs. Commentators, however, have noted that Habermas’ approach relies very much on ‘nation-state democracy’ and may not be applicable to democracy in MSIs—in which nation-states are virtually absent. We argue that (...) Habermas’ detailed conceptualization of the institutionalization of deliberative democracy can be applied to transnational MSIs if these initiatives can be said to have their own ‘dèmoi’ that can be represented in associational decision-making. Therefore, we develop a definition of the dèmos of an MSI based on the notion of collective agency. Subsequently, we explain how Habermas’ approach to democracy can be applied to MSIs and show that it has more to offer than hitherto has been uncovered. Our illustrative analysis of the EPA confirms the criticisms regarding this MSI which have recently been articulated by researchers and practitioners, but also yields new findings and possible avenues for the further development of the EPA: That is, although our assessment suggests that the EPA in its current state is still far from being a democratic MSI, the possibility of a sensible analysis of its democratic character indicates that transnational MSIs can, in principle, help to fill governance gaps in a democratic way. (shrink)

Contributions to stakeholder theory often do not systematically deal with the prioritization of stakeholder interests. An exception to this is Reed’s Habermasianapproach to stakeholder management. Central to Reed’s discursive approach is Habermas’s distinction between morality and ethics. Many authors in business ethics argue that, because of its distinction between morality and ethics, discourse ethics is well suited for dealing with the pluralism that characterizes modern society, but also mention complications with the application of this distinction. This paper taps into the (...) vivid debate in political philosophy on Habermas’s distinction between morality and ethics and, on this basis, further elaborates how stakeholder interests should be prioritized from the point of view of discourse ethics. It thus estimates the consequences of the objections against Habermas’s distinction for a discursive approach to the prioritization of stakeholder interests. The conclusion is that, although Habermas’s distinction is not as neat as it may seem, it is not fundamentally challenged and may be successfully applied in the prioritization of stakeholder interests. (shrink)

Nowadays businesses are often expected to create not just financial, but multiple kinds of value—and they report on this using numbers and narratives. Multiple-value accounting narratives, such as those required by the Integrated Reporting framework, are often met with suspicion: accounting scholars have argued that inconsistencies between narratives and performances show that narratives are used for impression management rather than to accurately report the (ir)responsible behavior of companies. This paper proposes to assess narratives beyond inconsistencies with reported performances. Starting from (...) the idea that performances are delivered in response to the kinds of value in the situation of the company, we argue that narratives and performances should be analyzed together as interrelated elements and considered in relation to the kinds of value in the situation. The paper transforms the common consequentialist view on which value should be “increased,” into the value pluralist view that something being of value can require many different performances such as for example respecting, maximizing, admiring, maintaining, using, and bringing it about. From this perspective, multiple-value accounting narratives logically precede the reporting of performances and should identify the kinds of value in the situation to which the company ought to respond, which performances are required by these kinds of value, and which indicators and targets should be used to report on these performances. A brief analysis of the annual report of Unilever illustrates how such metaethical criteria can help assess and develop multiple-value accounting narratives. (shrink)