Multinational enterprises are aware of their responsibility to protect human rights now more than ever, but severe human rights violations, including physical integrity abuses, continue unabated. To explore this puzzle, we engage theoretically with the means-ends decoupling literature to examine if and when oil and gas firms’ policies and practices prevent severe human rights abuse. Using an original dataset, we identify two pathways to mitigate means-ends decoupling: while human rights policies alone do not reduce human rights abuses, firms with a (...) high-quality human rights policy over the long-term reduce severe human rights abuses; firms that combine preparedness—which we define as a firm’s capabilities, practices, and engagement—with a long-term human rights policy also reduce the likelihood of human rights abuses. Preparedness, we argue, can lead to reinforcement dynamics between long-term policy efforts and additional capabilities that provide a more holistic understanding of firm behavior. (shrink)

Finance is an area that, in practice, is plagued by accusations of unethical activity; the study of finance had adopted a largely nonbehavioral approach to business ethics research. We address this gap in by assessing whether individual ethical orientations predict the acceptability of questionable decisions about financial issues. Results show that individual ethical orientations are associated with different levels of acceptability of questionable decisions about financial issues, though the pattern of these differences varies across individual ethical orientations assessed. These results (...) represent evidence that ethical individual differences are associated with the acceptability of questionable finance decisions and are discussed in terms of methodological limitations and future directions in finance ethics research. (shrink)

Abstract Today’s scholarship and policymaking on business and human rights (BHR) urges businesses to better understand their human rights responsibilities and remedy them, when and if abuses do occur. Despite the public discourse about businesses and human rights, the state—as the main duty bearer in international human rights law—plays a fundamental role as the protector and enforcer of human rights obligations. Yet, the existing literature overlooks state involvement as perpetrators of abuse in the corporate context. We develop the term _economic (...) complicity_ to shed light on the state’s role in directly or indirectly abusing human rights within a corporation’s sphere of influence, such as police violence toward nonviolent protesters or granting environmental licenses without adhering to legally required community consultations. We ask: What contributes to the state’s engagement in economic complicity in corporate human rights abuses? We assess hypotheses emergent from the democratic change and development studies literatures with a unique database that includes economic complicity data from Latin America, the Corporations and Human Rights Database (CHRD). This research has important theoretical implications for the business ethics and BHR literatures, as understanding economic complicity highlights the need for business actors to avoid shirking their moral responsibilities to not only ‘do no harm’ but also to protect human rights when they are threatened by the state. (shrink)

Since the early 1990s, the extractive industries have increasingly valued corporate social responsibility in the communities where they operate. More recently, these industries have begun to recognize the importance of adapting CSR efforts to unique local contexts rather than applying a one-size-fits-all model. However, firms understand local context to mean culture and treat the physical properties of the host region—topography, geology, hydrology, and climate—as the exclusive purview of mineral geologists and engineers. In this article, we examine the organization of CSR (...) at two industrial-scale gold mines in Guatemala, owned by the same firm, which yielded starkly distinct levels of support among host community residents. We develop the idea of social terrain to convey the way in which the biophysical environment informs local social relations and imbues phenomena with particular social meanings. We argue that firms must account for social terrain in organizing for CSR. The literature struggles to provide guidelines for identifying and understanding stakeholders. Social terrain, we argue, can begin to bridge this gap between theory and practice. (shrink)

This article provides a normative framework for evaluating the moral permissibility of various defences of European Union (EU) values against their violation in EU member states. This requires, first, a coherent interpretation of EU values as the values of liberal democracy; second, a clear notion of when they are violated; third, a theory of how liberal democracy can be defended with measures that are consistent with the values of liberal democracy themselves; and, finally, a discussion of what the EU’s role (...) is in this defence. The article argues that it would be permissible for the EU to combine a number of political, cultural, socio-economic and legal responses in a concentric defence of liberal democracy as long as they respect the separation of powers doctrine and do not rely on problematic notions of collective responsibility. (shrink)

ABSTRACT:How does the state influence stakeholder legitimacy? And how does this process affect an industry’s ethical challenges? Stakeholder theory adopts a forward-looking perspective and seeks to understand how managers can address stakeholders’ claims to improve the firm’s ability to create value. Yet, existing work does not adequately address the role of the state in defining the stakeholder universe nor the implications this may have for subsequent ethical challenges managers face. This article develops a political stakeholder theory (political ST) by weaving (...) together the political economy, stakeholder theory, and legitimacy literatures. Political ST shows how state policies influence stakeholder legitimacy and, in turn, affect an industry’s ethical challenges. This article integrates the concept of agonism to address the perennial tension between markets and states and its implications for firms and their managers. Political ST is then applied to the case of microfinance, followed by a discussion of the contributions of this approach. (shrink)

Corporate environmental performance has become a key focus of business leaders, policy makers, and scholars alike. Today, scholarship on environmental practice increasingly highlights how various aspects of corporate governance can influence environmental performance. However, the prior literature is inconclusive as to whether ownership by insiders (officers and directors) will have positive or negative environmental effects and whether insider voting control or equity control is more salient to environmental outcomes. This article leverages a unique empirical data set of dual-class firms, where (...) insiders have voting rights disproportionate to their equity rights, to shed light on this question. We find that, on average, dual-class firms underperform their single-class peers on environmental measures and that the discrepancy comes from dual-class firms where insiders have more voting control, relative to their equity stake. While small increases in voting control are associated with improved environmental performance, too much (relative to insiders’ equity stake) worsens firms’ environmental performance. Insider equity control alone has no impact on environmental outcomes. Our findings have important implications for agency theory and environmental scholarship by identifying contingencies on the impact of voting and equity-based incentives. This research casts doubt on the idea that providing insiders with significant voting control will aid environmental performance. (shrink)

This study explores the business ethics education literature published between 1982 and 2021. A systematic literature review and bibliometric analysis of 862 scholarly articles spanning 40 years of research on business ethics education revealed a thematic shift in the literature. Whereas older articles were predominantly concerned with ethics, relatively newer articles mainly focus on addressing the broader concept of sustainability. A content analysis of the 25 most locally cited articles between 1987 and 2012 identified two main research streams: (a) integration (...) of business ethics into business school curricula and (b) the pedagogical approaches and tools used to teach business ethics. An additional content analysis of the 15 most locally cited articles published between 2016 and 2021 revealed that discussions related to integration and pedagogical approaches and tools were still ongoing in the literature, albeit with a focus on sustainability-related concepts such as the Sustainable Development Goals (SDGs) and the Principles for Responsible Management Education (PRME). Building upon our findings and existing literature, we develop a framework that we refer to as Transforming Ethics Education in Business Schools (TEEBS), which we argue may help business schools reclaim the ‘ethics’ in business ethics education. (shrink)

To go on in the business of living, man needs a basic certainty. This is what I interpret as metaphysics. A prerequisite for making metaphysics is that you have some understanding of Biography of Philosophy. On the other hand, life is not a pre-given entity; it depends on what you do out it. This is the action directed aspects of life. In short, what I am arguing for is that the human being itself is the foundation for every story we (...) tell and re-tell about what we have done, and what we are doing in review of our plans and project for the future. (shrink)

Relationships between stakeholders and businesses have the potential for conflict and cooperation. Such conflicts arise out of real differences in values and interests. This article explores the employment relationship as an emblematic case of business–stakeholder relations in which conflict is inevitable because employers and employees have interests that are at least partially conflicting, even while some degree of collaboration and shared interests underpins the existence of all employment relationships. We build on insights from the philosophy of agonism to develop the (...) concept of agonistic business responsibility, which is a stakeholder management orientation that views conflict and contestation differently from the status quo, which we term antagonistic business irresponsibility. We discuss the broader implications of these ideas for stakeholder relations at the organizational level and the prospect of strengthened institutions at the societal level. (shrink)

This article argues against the idea that European Union (EU) member states (MSs) that have turned autocratic should be ejected from the EU to ensure that the latter does not itself violate the principle of democracy identified with the all subjected principle (ASP). First, the ASP requires that MSs be democratic before a decision to eject them would be acceptable and at that point, there is no reason to eject them. Second, if EU membership is voluntary as the protagonist of (...) the above idea presupposes, any MS can decide to leave at any point in time and other MSs can decide to leave any MS behind and create a new European organization without it. Taken together, this means that the ASP, which pertains to permanent subjection (to EU law), is irrelevant already from the outset and cannot be used as the main premise for the argument for ejection. Finally, the very disagreement about what kind of organization the EU is and should become, implies that the democratic rights of citizens be given priority over the rights of states. This speaks against the legitimacy of ejecting MSs for democracy protection. (shrink)