Backdating of stock options is an example of an agency problem. It has emerged despite all the measures (i.e., new regulations and additional corporate governance mechanisms) aimed at addressing such problems? Beyond such negative controlling measures, a more positive empowering approach based on ethics may also be necessary. What ethical measures need to be taken to address the agency problem? What values and norms should guide the board of directors in protecting the shareholders' interests? To examine these issues, we (...) first discuss the role values and norms can play with respect to underlying corporate governance and the proper role of directors, such as transparency, accountability, integrity (which is reflected in proper mechanisms of checks and balances), and public responsibility. Second, we discuss various stakeholder approaches (e.g., government, directors, managers, and shareholders) by which conflicts of interest (i.e., the agency problem) can be addressed. Third, we assess the practice of backdating stock options, as an illustration of the agency problem, in terms of whether the practice is legally acceptable or ethically justifiable. Fourth, we proceed to an analysis of good corporate governance practice involving backdating options based on a series of ethical standards including: (1) trustworthiness; (2) utilitarianism; (3) justice; and (4) Kantianism. We conclude that while executive compensation schemes (e. g., stock options) were originally intended to help remedy the agency problem by tying together the interests of the executives and shareholders, these schemes may have actually become "part of the problem," and that the solution ultimately depends upon whether directors and executives accept that all of their actions must be based on a set of core ethical values. (shrink)
Littoz-Monnet provides a fresh analysis of the enmeshment of expert knowledge with politics in global governance, through a unique investigation of bioethical expertise, an intriguing form of 'expert knowledge' which claims authority in the ethical analysis of issues that arise in relation to biomedicine, the life sciences and new fields of technological innovation. She makes the case that the mobilisation of ethics experts does not always arise from a motivation to rationalise governance. Instead, mobilising ethics experts - who (...) are endowed with a unique double-edged authority, both 'democratic' and 'epistemic' - can help policy-makers manoeuvre policy conflicts on scientific and technological innovations and make their pro-science and innovation agendas possible. Bioethical expertise is indeed shaped in a political and iterative space between experts and those who do policy. The book reveals the mechanisms through which certain global governance narratives, as well as the types of expertise they rely on, remain stable even when they are contested. (shrink)
We examine the relationships among religious governance, especially Islamic governance quality, national governance quality, and risk management and disclosure practices, and consequently ascertain whether NGQ has a moderating influence on the IGQ–RDPs nexus. Using one of the largest data sets relating to Islamic banks from 10 Middle East and North Africa countries from 2006 to 2013, our findings are threefold. First, we find that RDPs are higher in banks with higher IGQ. Second, we find that RDPs are (...) higher in banks from countries with higher NGQ. Finally, we find that NGQ has a moderating effect on the IGQ–RDPs nexus. Our findings are robust to alternative RDP measures and estimation techniques. These results imply that the quality of disclosure depends on the nature of the macro-social-level factors, such as religion that have remained largely unexplored in business and society research, and, therefore, have important implications for policy makers. (shrink)
Biodiversity science is in a pivotal period when diverse groups of actors—including researchers, businesses, national governments, and Indigenous Peoples—are negotiating wide-ranging norms for governing and managing biodiversity data in digital repositories. These repositories, often called biodiversity data portals, are a type of organization for which governance can address or perpetuate the colonial history of biodiversity science and current inequities. Researchers and Indigenous Peoples are developing and implementing new strategies to examine and change assumptions about which agents should count as (...) salient participants in scientific projects, especially in projects that build and manage large digital data portals. Two notable efforts are the FAIR (Findable, Accessible, Interoperable, Reusable) and CARE (Collective benefit, Authority, Responsibility, Ethics) Principles for scientific data management and governance. To characterize how these principles influence the governance of biodiversity data portals, we develop an account of fit-for-use data that makes explicit its social as well as technical conditions in relation to agents and purposes. The FAIR Principles, already widely adopted by biodiversity researchers, prioritize machine agents and efficient computation, while the CARE Principles prioritize Indigenous Peoples and their data sovereignty. Both illustrate the potency of an emerging general strategy by which groups of actors craft and implement governance principles for data fitness-of-use to change assumptions about who are salient participants in data science. (shrink)
Liberalism, Miguel de Beistegui argues in The Government of Desire, is best described as a technique of government directed towards the self, with desire as its central mechanism. Whether as economic interest, sexual drive, or the basic longing for recognition, desire is accepted as a core component of our modern self-identities, and something we ought to cultivate. But this has not been true in all times and all places. For centuries, as far back as late antiquity and early Christianity, philosophers (...) believed that desire was an impulse that needed to be suppressed in order for the good life, whether personal or collective, ethical or political, to flourish. Though we now take it for granted, desire as a constitutive dimension of human nature and a positive force required a radical transformation, which coincided with the emergence of liberalism. By critically exploring Foucault’s claim that Western civilization is a civilization of desire, de Beistegui crafts a provocative and original genealogy of this shift in thinking. He shows how the relationship between identity, desire, and government has been harnessed and transformed in the modern world, shaping our relations with others and ourselves, and establishing desire as an essential driving force for the constitution of a new and better social order. But is it? The Government of Desire argues that this is precisely what a contemporary politics of resistance must seek to overcome. By questioning the supposed universality of a politics based on recognition and the economic satisfaction of desire, de Beistegui raises the crucial question of how we can manage to be less governed today, and explores contemporary forms of counter-conduct. Drawing on a host of thinkers from philosophy, political theory, and psychoanalysis, and concluding with a call for a sovereign and anarchic form of desire, The Government of Desire is a groundbreaking account of our freedom and unfreedom, of what makes us both governed and ungovernable. (shrink)
This ground-breaking text offers a fresh perspective on the governance of science from the standpoint of social and political theory. Science has often been seen as the only institution that embodies the elusive democratic ideal of the 'open society'. Yet, science remains an elite activity that commands much more public trust than understanding, even though science has become increasingly entangled with larger political and economic issues.
Among politicians and policy-makers it is almost universally assumed that more transparency in government is better. Until now, philosophers have almost completely ignored the topic of transparency, and when it is discussed there seems to be an assumption that increased transparency is a good thing, which results in no serious attempt to justify it. In this book Brian Kogelmann shows that the standard narrative is false and that many arguments in defence of transparency are weak. He offers a comprehensive philosophical (...) analysis of transparency in government, examining both abstract normative defences of transparency, and transparency's role in the theory of institutional design. His book shows that even when the arguments in favour of transparency are compelling, the costs associated with it are just as forceful as the original arguments themselves, and that strong arguments can be made in defence of more opaque institutions. (shrink)
When comparing both GDP loss and mortality across countries, it appears that countries that have managed to save more lives during the Covid-19 pandemic have also managed to save their economies better. What accounts for these stark differences in country performances? In this article, we argue that a salient feature of economic and health performance is the degree of trust populations have in their governments. We set up a heuristic analytical framework that models this relation, under particular assumptions about what (...) drives government and individual behavior, in order to better understand the mechanisms that may be at work. We identify three key roles that trust in government may play in enforcing social distancing policies, conveying credible information for individual decision-making, and shaping government attitudes towards risk. We argue that these implications are consistent with the empirical evidence. We also discuss the relevance of other forms of trust, namely, interpersonal trust and trust in science. (shrink)
Governing Animals explores the role of the liberal state in protecting animal welfare. Examining liberal concepts such as the social contract, property rights, and representation, Kimberly K. Smith argues that liberalism properly understood can recognize the moral status and social meaning of animals and provides guidance in fashioning animal policy.
In her paper, “The Non-Governing Conception of Laws,” Helen Beebee argues that it is not a conceptual truth that laws of nature govern, and thus that one need not insist on a metaphysical account of laws that makes sense of their governing role. I agree with the first point but not the second. Although it is not a conceptual truth, the fact that laws govern follows straightforwardly from an important (though under-appreciated) principle of scientific theory choice combined with a highly (...) plausible claim about the connection between scientific theory choice and theory choice in metaphysics. I present and defend this argument and then show how the resulting understanding of governance gives rise to an especially strong version of recent explanatory circularity arguments against Humeanism about laws of nature. Finally, I present three options for a further understanding of the governance relation that are compatible with my argument. (shrink)
The Great Divide in metaphysical debates about laws of nature is between Humeans, who think that laws merely describe the distribution of matter, and non-Humeans, who think that laws govern it. The metaphysics can place demands on the proper formulations of physical theories. It is sometimes assumed that the governing view requires a fundamental / intrinsic direction of time: to govern, laws must be dynamical, producing later states of the world from earlier ones, in accord with the fundamental direction of (...) time in the universe. In this paper, we propose a minimal primitivism about laws of nature (MinP) according to which there is no such requirement. On our view, laws govern by constraining the physical possibilities. Our view captures the essence of the governing view without taking on extraneous commitments about the direction of time or dynamic production. Moreover, as a version of primitivism, our view requires no reduction / analysis of laws in terms of universals, powers, or dispositions. Our view accommodates several potential candidates for fundamental laws, including the principle of least action, the Past Hypothesis, the Einstein equation of general relativity, and even controversial examples found in the Wheeler-Feynman theory of electrodynamics and retrocausal theories of quantum mechanics. By understanding governing as constraining, non-Humeans who accept MinP have the same freedom to contemplate a wide variety of candidate fundamental laws as Humeans do. (shrink)
This study investigates the effects of internal and external corporate governance and monitoring mechanisms on the choice of corporate social responsibility (CSR) engagement and the value of firms engaging in CSR activities. The study finds the CSR choice is positively associated with the internal and external corporate governance and monitoring mechanisms, including board leadership, board independence, institutional ownership, analyst following, and anti- takeover provisions, after controlling for various firm characteristics. After correcting for endogeneity and simultaneity issues, the results (...) show that CSR engagement positively influences firm value measured by industry-adjusted Tobin’s q. We find that the impact of analyst following for firms that engage in CSR on firm value is strongly positive, while the board leadership, board independence, blockholders’ ownership, and institutional ownership play a relatively weaker role in enhancing firm value. Furthermore, we find that CSR activities that address internal social enhancement within the firm, such as employees diversity, firm relationship with its employees, and product quality, enhance the value of firm more than other CSR subcategories for broader external social enhancement such as community relation and environmental concerns. (shrink)
Background Consent policies for post-mortem organ procurement (OP) vary throughout Europe, and yet no studies have empirically evaluated the ethical implications of contrasting consent models. To fill this gap, we introduce a novel indicator of governance quality based on the ideal of informed support, and examine national differences on this measure through a quantitative survey of OP policy informedness and preferences in seven European countries. -/- Methods Between 2017–2019, we conducted a convenience sample survey of students (n = 2006) (...) in Austria (AT), Belgium (BE), Denmark (DK), Germany (DE), Greece (GR), Slovenia (SI) and Spain (ES), asking participants about their donation preferences, as well as their beliefs and views about the policy in place. From these measures, we computed indices of informedness, policy support, and fulfilment of unexpressed preferences, which we compared across countries and consent systems. -/- Results Our study introduces a tool for analyzing policy governance in the context of OP. Wide variation in policy awareness was observed: Most respondents in DK, DE, AT and BE correctly identified the policy in place, while those in SI, GR and ES did not. Respondents in opt-out countries (AT, BE, ES and GR) tended to support the policy in place (with one exception, i.e., SI), whereas those in opt-in countries (DE and DK) overwhelmingly opposed it. These results reveal stark differences in governance quality across countries and consent policies: We found a preponderance of informed opposition in opt-in countries and a general tendency towards support–either informed or uninformed–in opt-out countries. We also found informed divergence in opt-in countries and a tendency for convergence–either informed or uninformed–among opt-out countries. -/- Conclusion Our study offers a novel tool for analyzing governance quality and illustrates, in the context of OP, how the strengths and weaknesses of different policy implementations can be estimated and compared using quantitative survey data. (shrink)
Why our workplaces are authoritarian private governments—and why we can’t see it One in four American workers says their workplace is a “dictatorship.” Yet that number almost certainly would be higher if we recognized employers for what they are—private governments with sweeping authoritarian power over our lives. Many employers minutely regulate workers’ speech, clothing, and manners on the job, and employers often extend their authority to the off-duty lives of workers, who can be fired for their political speech, recreational activities, (...) diet, and almost anything else employers care to govern. In this compelling book, Elizabeth Anderson examines why, despite all this, we continue to talk as if free markets make workers free, and she proposes a better way to think about the workplace, opening up space for discovering how workers can enjoy real freedom. (shrink)
There is a distinct lack of research into the relationship between corporate governance and corporate social responsibility (CSR) in the banking sector. This paper fills the gap in the literature by examining the impact of corporate governance, with particular reference to the role of board of directors, on the quality of CSR disclosure in US listed banks’ annual reports after the US sub-prime mortgage crisis. Using a sample of large US commercial banks for the period 2009–2011 and controlling (...) for audit committee characteristics, board meeting frequency, and banks’ profitability, size and risk, we find evidence that board independence and board size, the two board characteristics usually associated with the protection of shareholder interests, are positively related to CSR disclosure. This indicates that, with regard to CSR disclosure, more independent boards of directors and larger boards are the internal corporate governance mechanisms which promote both shareholders’ and other stakeholders’ interests. Contrary to our expectations, CEO duality also impacts positively on CSR disclosure. From an agency-theoretical viewpoint, this suggests that powerful CEOs may promote transparency about banks’ CSR activities for their private benefits. While this could indicate that powerful CEOs are under particular pressure to appease stakeholders’ concerns that they might abuse their power by providing a high degree of CSR disclosure, it could also be a sign of managerial risk aversion or managers’ private reputational concerns. (shrink)
Building on prior research in Confucianism and business, the current study examines the effects of Confucianism on consumer trust of government involvement with products and company brands. Based on three major ideas of Confucianism – meritocracy, loyalty to superior, and separation of responsibilities – it is expected that consumers under the influence of Confucianism would perceive products from government-involved enterprises to have more desirable attributes and show preference for their company brands. Findings from an empirical study in the Chinese automobile (...) market support the hypotheses. The results suggest that small firms doing business in China would especially benefit from some association with the government. These results also provide managerial implications for enterprises in other countries with a Confucian cultural background. (shrink)
Biobanks are proliferating rapidly worldwide because they are powerful tools and organisational structures for undertaking medical research. By linking samples to data on the health of individuals, it is anticipated that biobanks will be used to explore the relationship between genes, environment and lifestyle for many diseases, as well as the potential of individually-tailored drug treatments based on genetic predisposition. However, they also raise considerable challenges for existing legal frameworks and research governance structures. This book critically examines the current (...)governance structures in place for biobanks in England and Wales. It shows that the technologies, techniques and practices involved in biobanking do not always conform neatly to existing legal principles and frameworks that apply to other areas of medical research. Using a socio-legal approach, including interview data gathered from the scientific community, this book provides unique insights and makes recommendations about appropriate governance mechanisms for biobanking in the future. It also explores the issues around the secondary use of information, such as consent and how to protect privacy, when biobanks are accessed by a number of different third parties. These issues have relevance both within England and Wales and to a wide international audience, as well as for other areas where large datasets are used. (shrink)
Mencian benevolent government intervenes dramatically in many ways in the marketplace in order to secure the material well-being of the population, especially the poor and disadvantaged. Mencius considers this sort of intervention to be appropriate not just occasionally when dealing with natural disasters, but regularly. Furthermore, Mencius recommends shifting from regressive to progressive taxes. He favors reduction of inequality so as to reduce corruption of government by the wealthy, and opposes punishment for people driven to crime by destitution. Mencius thinks (...) government should try to improve the character of the population by preventing or relieving poverty, by setting a good example, and by teaching people to respect and care for each other. He considers a government to be legitimate only if it has the support of the people. His recommended foreign policy is approximately the same as his recommended domestic policy: set a good example and enhance the material wellbeing and moral values of one’s own people so that they will enthusiastically support their country, while foreigners will long to immigrate. These are policies of today’s left. Mencius was a radical reformer in his own day. His description of benevolent government shows that he is an extreme liberal by contemporary standards, too. (shrink)
This article explores how corporate governance processes and structures are being used in large Australian companies to develop, lead and implement corporate responsibility strategies. It presents an empirical analysis of the governance of sustainability in fifty large listed companies based on each company’s disclosures in annual and sustainability reports. We find that significant progress is being made by large listed Australian companies towards integrating sustainability into core business operations. There is evidence of leadership structures being put in place (...) to ensure that board and senior management are involved in sustainability strategy development and are then incentivised to monitor and ensure implementation of that strategy through financial rewards. There is evidence of a willingness to engage and communicate clearly the results of these strategies to interested stakeholders. Overall, there appears to be a developing acceptance amongst large corporations that efforts towards improved corporate sustainability are not only expected but are of value to the business. We suggest that this is evidence of a managerial shift away from an orthodox shareholder primacy understanding of the corporation towards a more enlightened shareholder value approach, often encompassing a stakeholder-orientated view of business strategy. However, strong underlying tensions remain due to the insistent market emphasis on shareholder value. (shrink)
An exciting and highly original examination of the practices of truth-telling and speaking out freely (parr?sia) in ancient Greek tragedy and philosophy. Foucault discusses the difficult and changing practices of truth-telling in ancient democracies and tyrannies and offers a new perspective on the specific relationship of philosophy to politics.
Local sustainable food systems have captured the popular imagination as a progressive, if not radical, pillar of a sustainable food future. Yet these grassroots innovations are embedded in a dominant food regime that reflects productivist, industrial, and neoliberal policies and institutions. Understanding the relationship between these emerging grassroots efforts and the dominant food regime is of central importance in any transition to a more sustainable food system. In this study, we examine the encounters of direct farm marketers with food safety (...) regulations and other government policies and the role of this interface in shaping the potential of local food in a wider transition to sustainable agri-food systems. This mixed methods research involved interview and survey data with farmers and ranchers in both the USA and Canada and an in-depth case study in the province of Manitoba. We identified four distinct types of interactions between government and farmers: containing, coopting, contesting, and collaborating. The inconsistent enforcement of food safety regulations is found to contain progressive efforts to change food systems. While government support programs for local food were helpful in some regards, they were often considered to be inadequate or inappropriate and thus served to coopt discourse and practice by primarily supporting initiatives that conform to more mainstream approaches. Farmers and other grassroots actors contested these food safety regulations and inadequate government support programs through both individual and collective action. Finally, farmers found ways to collaborate with governments to work towards mutually defined solutions. While containing and coopting reflect technologies of governmentality that reinforce the status quo, both collaborating and contesting reflect opportunities to affect or even transform the dominant regime by engaging in alternative economic activities as part of the ‘politics of possibility’. Developing a better understanding of the nature of these interactions will help grassroots movements to create effective strategies for achieving more sustainable and just food systems. (shrink)
Given the increasing importance attached to both corporate social responsibility (CSR) and corporate governance, this study investigates the association between these two complimentary mechanisms used by companies to enhance relations with stakeholders. Consistent with both legitimacy and stakeholder theory and controlling for industry profile, firm size, stockholder power/dispersion, creditor power/leverage, and economic performance, our analysis of the annual reports for a sample of 222 listed companies suggests that firms providing more CSR information: have better corporate governance ratings; are (...) larger; belong to higher profile industries; and are more highly leveraged. Our findings support the limited prior research suggesting a link between corporate governance quality and CSR disclosure in company annual reports and suggest that, rather than mandating specific disclosures, regulators might be better served focussing on corporate governance quality as a way of increasing CSR disclosures. (shrink)
This paper discusses corporate governance issues from a compliance viewpoint. It makes a distinction between legal and ethical compliance mechanisms and shows that the former has clearly proven to be inadequate as it lacks the moral firepower to restore confidence and the ability to build trust. The concepts of freedom of indifference and freedom for excellence provide a theoretical basis for explaining why legal compliance mechanisms are insufficient in dealing with fraudulent practices and may not be addressing the real (...) and fundamental issues that inspire ethical behavior. The tendency to overemphasize legal compliance mechanisms may result in an attempt to substitute accountability for responsibility and may also result in an attempt to legislate morality which consequently leads to legal absolutism. The current environment of failures of corporate responsibility are not only failures of legal compliance, but more fundamentally failures to do the right (ethical) thing. (shrink)
Fair Governance: The Enforcement of Morals is a study of legal interference with individual preferences and will canvass the interdisciplinary literature in economics, psychology, philosophy, and law. It discusses the particular conditions necessary for the state to legally interfere with our freedom of choice, whether it be to either satisfy our individual pursuit of happiness or to prevent us from making immoral choices. Relatively few philosophers know much of the parallel literature on this central problem of ethics; while many (...) legal scholars are acquainted with the psychological literature on judgment biases, they are frequently unfamiliar with the philosophical literature on perfectionism. Francis H. Buckley carefully links these two notions of state power with recent empirical literature on judgment biases and happiness studies and surveys the literature, arguing for a nuanced form of social perfectionism, one which seeks to promote the kind of liberal nationalism found in the United States. (shrink)
This book provides methods and practical cases and experiences with the aim of stimulating Responsible Research and Innovation through the direct engagement of researchers, Civil Society Organisations, citizens, industry stakeholders, policy and decision makers, research funders and communicators. The book furthermore aims to advance debate on Responsible Research and Innovation and also to reinforce the RRI community identity. With chapters covering governance, public engagement and inclusion in responsible R&D and innovation processes; RRI actions in science education and communication; gender (...) and ethical issues in RRI initiatives; and sustainability of RRI processes, the book is solidly part of the Europe 2020 strategy to promote a vision for a stronger collaborations between social, natural and physical scientists and the societal actors for a wider dimensions of science and innovation and the role in environmental preservation. (shrink)
We examine the relationship between corporate governance and the extent of corporate social responsibility (CSR) disclosures in the annual reports of Bangladeshi companies. A legitimacy theory framework is adopted to understand the extent to which corporate governance characteristics, such as managerial ownership, public ownership, foreign ownership, board independence, CEO duality and presence of audit committee influence organisational response to various stakeholder groups. Our results suggest that although CSR disclosures generally have a negative association with managerial ownership, such relationship (...) becomes significant and positive for export-oriented industries. We also find public ownership, foreign ownership, board independence and presence of audit committee to have positive significant impacts on CSR disclosures. However, we fail to find any significant impact of CEO duality. Thus, our results suggest that pressures exerted by external stakeholder groups and corporate governance mechanisms involving independent outsiders may allay some concerns relating to family influence on CSR disclosure practices. Overall, our study implies that corporate governance attributes play a vital role in ensuring organisational legitimacy through CSR disclosures. The findings of our study should be of interest to regulators and policy makers in countries which share similar corporate ownership and regulatory structures. (shrink)
Our capacity for planning agency is central to our human lives. These essays aim both to deepen our understanding of basic norms that guide our plan-infused thinking and to defend their status as norms of practical rationality. This defense appeals both to forms of pragmatic support and to the ways in which these norms track conditions of a planning agent's self-governance, both at a time and over time.
_"The Government of Poland_ is the only finished work in which Rousseau himself dons the mantle of legislator, applying the principles of the _Social Contract_ to the real world around him. _Poland_ teaches us much about the mysterious art of the _Social Contract's_ 'legislator,' how he transforms each individual into part of a larger whole. Only in... _Poland_ do we find what this crucial transformation entails and what it presupposes. But probably the greatest lesson to be learned from... Poland concerns (...) Rousseau's understanding of the proper relationship between theory and practice.... Time and again we see Rousseau advising the Poles to do things which are in gross violation of the strict principles of political right he had elaborated in the Social Contract." --Richard Myers in _Canadian Journal of Political Science_. (shrink)
The concept of `governance' has become a central catchword across the social and political sciences. In Governing and Governance, Jan Kooiman revisits and develops his seminal work in the field to map and demonstrate the utility of a sociopolitical perspective to our understanding of contemporary forms of governing, governance and governability. A central underlying theme of the book is the notion of governance as a process of interaction between different societal and political actors and the growing (...) interdependencies between the two as modern societies become ever more complex, dynamic and diverse. Drawing upon a wide range of interdisciplinary insights, the book advances a comprehensive conceptual framework that seeks to capture the different elements, modes and orders of governing and governance. A series of useful distinctions are employed, for example, between self, `co', and hierarchical modes, and between first, second, or meta orders to illustrate the many different structures and levels of modern governance today. Theoretically rich and illuminating, Governing and Governance will be essential reading for all students and academics across the social and political sciences, public management and public administration. (shrink)
Some argue that managers over-invest in corporate social responsibility (CSR) activities to build their personal reputations as good global citizens. Others claim that CEOs strategically choose CSR activities to reduce the probability of CEO turnover in a future period through indirect support from activists. Still others assert that firms use CSR activities to signal their product quality. We find that firms use governance mechanisms, along with CSR engagement, to reduce conflicts of interest between managers and non-investing stakeholders. Employing a (...) large and extensive sample of firms within Russell 2000, S& 500 and Domini 400 indices during the 1993-2004 period, we find that consistent with the conflict-resolution hypothesis, the CSR choice is positively associated with governance characteristics, including board independence, institutional ownership, and analyst following. In addition, after correcting for endogeneity of CSR engagement, our results show that CSR engagement positively influences operating performance and firm value, supporting the conflict-resolution hypothesis as opposed to the over-investment and strategic-choice arguments. We find only a weak support of the product-signaling hypothesis as a major motive of CSR engagement. (shrink)
This paper offers an extended critique of the proliferation of talk and writing of business ethics in recent years. FollowingLevinas, it is argued that the ground of ethics lies in our corporeal sensibility to proximate others. Such moral sensibility, however, isreadily blunted by a narcissistic preoccupation with self and securing the perception of self in the eyes of powerful others. Drawing upon a Lacanian account of the formation of the subject, and a Foucaultian account of the workings of disciplinary power, (...) it is then argued that the governance of the corporation is effected precisely through encouraging such a narcissistic preoccupation with the self. For themost part our narcissistic concerns are bound to ethically indifferent financial interests. But in recent years they have also been harnessed to the demand for environmental, social and ethical responsibility by the corporation. It is argued, however, that the desire to be seen to be ethical-the ethics of narcissus-is the obverse of "being responsible for.". (shrink)
Governing Europe is the first book to systematically link Michel Foucault's hypotheses on power and 'governmentality' with the study of European integration. Through a series of empirical encounters that spans the fifty-year history of European integration, it explores both the diverse political dreams that have framed means and ends of integration and the political technologies that have made 'Europe' a calculable, administrable domain. The book illustrates how a genealogy of European integration differs from conventional approaches. By suspending the assumption that (...) we already know what/where Europe is, it opens a space for analysis where we can ask: how did Europe come to be governed as this and not that? The themes covered by this book include: * the different constructions of Europe within discourses of modernization, democratization, insecurity and 'governance' * the imprint of modernism, liberalism, ordoliberalism, neoliberalism and crime on the identity of the European Community/European Union * the historical relationship between European government and specific technologies of power, technologies as diverse as planning, price control, transparency and benchmarking. (shrink)
ABSTRACTIf representative democracy is not about elected officials responding directly to voters’ preferences, and if the voters do a poor job of voting their interests in referendums, then what is democracy about? In our view, a satisfactory theory of democracy would focus normatively on the social identities and political interests of citizens rather than on their expressed policy preferences, and empirically on the ability of organized or attentive groups to get those identities and interests effectively recognized and acted on in (...) the governmental process. A group-theoretic version of democratic theory along these lines would dispense with the most important illusions of the conventional “folk theory” of democracy. However, much hard work remains to clarify how actual democracies make policy and to construct a wise normative standard—inspirational but not innocent—against which they can be judged. (shrink)
Although trustworthiness has been described as a source of competitive advantage, its value extends to organizational governance and wealth creation. We identify the importance of the commitment—compliance continuum in the decision to trust and note that trustworthiness is a subjective perception viewed through each person's mediating lens. That lens and each person's interpretation of the social contract impact one's commitment to cooperate. We suggest five propositions that integrate trustworthiness, governance, and wealth creation.
The recent prominence of corporate governance was sparked by a decline in trust in business that followed on some spectacular corporate scandals. There is an expectation that adherence to the standards of good corporate governance can restore trust in business. This article examines the link between corporate governance and trust and finds that at least theoretically there is a positive correlation between corporate governance and trust in business. It is however argued that not any form or (...) model of corporate governance will enhance trust in business. An appropriate balance needs to be struck between a number of polarities that exist in the corporate governance reform agenda. Three such polarities are explored and the nature of the balance that needs to be found with regard to each of these sets of polarities is outlined. (shrink)
Realists about laws of nature and their Humean opponents disagree on whether laws ‘govern’. An independent commitment to the ‘governing conception’ of laws pushes many towards the realist camp. Despite its significance, however, no satisfactory account of governance has been offered. The goal of this article is to develop such an account. I base my account on two claims. First, we should distinguish two notions of governance, ‘guidance’ and ‘production’, and secondly, explanatory phenomena other than laws are also (...) candidates for governance. My goal is to develop a unified account which captures both guidance and production as well as the governance of phenomena, such as essence and logical consequence. The account of governance I develop belongs to the family of modal accounts, which was popularized by David Armstrong, but it also employs essentialist resources. If successful, this modal-essentialist account not only reveals the costs that proponents of governance incur, but it also puts that important notion on a solid theoretical foundation. (shrink)
For decades, liberal democracy has been extolled as the best system of governance to have emerged out of the long experience of history. Today, such a confident assertion is far from self-evident. Democracy, in crisis across the West, must prove itself. In the West today, the authors argue, we no longer live in "industrial democracies," but "consumer democracies" in which the governing ethos has ended up drowning households and governments in debt and resulted in paralyzing partisanship. In contrast, the (...) long-term focus of the decisive and unified leadership of China is boldly moving its nation into the future. But China also faces challenges arising from its meteoric rise. Its burgeoning middle class will increasingly demand more participation, accountability of government, curbing corruption and the rule of law. As the 21st Century unfolds, both of these core systems of the global order must contend with the same reality: a genuinely multi-polar world where no single power dominates and in which societies themselves are becoming increasingly diverse. The authors argue that a new system of "intelligent governance" is required to meet these new challenges. To cope, the authors argue that both East and West can benefit by adapting each other's best practices. Examining this in relation to widely varying political and cultural contexts, the authors quip that while China must lighten up, the US must tighten up. This highly timely volume is both a conceptual and practical guide of impressive scope to the challenges of good governance as the world continues to undergo profound transformation in the coming decades. (shrink)
This book argues that political libertarianism can be grounded in widely shared, everyday moral beliefs--particularly in strictures against shifting our burdens onto others. It also seeks to connect these philosophical arguments with related work in economics, history, and politics for a wide-ranging discussion of political economy.
Recent scandals allegedly linked to CEO compensation have brought executive compensation and perquisites to the forefront of debate about constraining executive compensation and reforming the associated corporate governance structure. We briefly describe the structure of executive compensation, and the agency theory framework that has commonly been used to conceptualize executives acting on behalf of shareholders. We detail some criticisms of executive compensation and associated ethical issues, and then discuss what previous research suggests are likely intended and unintended consequences of (...) some widely proposed executive compensation reforms. We explicitly discuss the following recommendations for reform: require greater independence of compensation committees, require executives to hold equity in the corporation, require greater disclosure of executive compensation, increase institutional investor involvement in corporate governance (including executive compensation), and require firms to expense stock options on their income statements. We provide a brief summary discussion of ethical issues related to executive compensation, and describe possible future research. (shrink)
The book presents an interdisciplinary exploration aimed at renewing interest in Luigi Einaudi’s search for “good government”, broadly understood as “good society”. Prompted by the Einaudian quest, the essays - exploring philosophy of law, economics, politics and epistemology - develop the issue of good government in several forms, including the relationship between public and private, public governance, the question of freedom and the complexity of the human in contemporary societies.
In this paper, I explore how theorists might navigate a course between the twin dangers of piety and excess cynicism when thinking critically about state apologies, by focusing on two government apologies to indigenous peoples: namely, those made by the Australian and Canadian Prime Ministers in 2008. Both apologies are notable for several reasons: they were both issued by heads of government, and spoken on record within the space of government: the national parliaments of both countries. Furthermore, in each case, (...) the object of the apology – that which was apologized for – comes closer to disrupting the idea both countries have of themselves, and their image in the global political community, than any previous apologies made by either government. Perhaps as a result, both apologies were surrounded by celebration and controversy alike, and tracing their consequences – even in the short term – is a difficult business. We avoid excessive piety or cynicism, I argue, when we take several things into account. First, apologies have multiple functions: they narrate particular histories of wrongdoing, they express disavowal of that wrongdoing, and they commit to appropriate forms of repair or renewal. Second, the significance and the success of each function must be assessed contextually. Third, when turning to official political apologies, in particular, appropriate assessment of their capacity to disavow or to commit requires that consider apologies both as performance and as political action. While there remain significant questions regarding the practice of political apology – in particular, its relationship to practices of reparation, forgiveness and reconciliation – this approach can provide a framework with which to best consider them. (shrink)