This article contributes to the debate about the political role of the business firm. The article clarifies what is meant by the “political” role of the firm and how this political role relates to its economic role. To this end, the authors present an ordonomic concept of corporate citizenship and illustrate the concept by way of comparison with the Aristotelian idea of individual citizenship for the antique polis. According to our concept, companies take a political role if (...) they participate in rule-setting processes and rule-finding discourses. Though this political role of the corporation is in principle ambivalent, the authors conclude that in such processes of “new governance” the economic and political roles of the firm need not contradict each other but can follow the same win-win logic of individual self-perfection through cooperative social interactions. (shrink)

The business case for social responsibility is one of the most widely studied topics in the business and society literature that focuses on large firms. This attention is understandable because large firms have an obligation to shareholders who, as commonly assumed, seek to maximize returns on their investments, in turn, pressing corporate managers to show that firms’ expenditures in social engagement would pay off. Small firms, on the other hand, rarely face such pressures, yet the BCSR logic is (...) increasingly applied to small firms as well. Our primary objective in this paper is to examine whether and how much do small firm owners’ perceptions of BCSR affect the firm’s social engagement. In finding a fine-grained answer to those questions, we consider BCSR as a two-dimensional construct consisting of tangible and intangible benefits, and also integrate the BCSR perspective with the slack resource perspective to offer a motivation-capacity lens to examine firm’s social engagement. Drawing on a multi-industry sample of 478 small firms in the US, we find that while small firm owners’ perceptions about potential tangible benefits of social engagement are not related to the firm’s social engagement, perceptions about potential intangible are positively related. Firm's financial performance is also positively related to its social engagement, but there is no interaction between potential benefits and financial performance. This study contributes to an improved understanding about small firms’ social engagement, which still remains an understudied area. Our results are in line with studies which argue that firms’ social engagement is a response to institutional factors. (shrink)

The idea that business firms qualify as group moral agents offers an attractive basis for understanding corporate moral responsibility. However, that idea gives rise to the “corporate autonomy problem” (CAP): if firms are moral agents, then it seems we must accept the implausible conclusion that firms have basic moral rights, such as the rights to life and liberty. The question, then, is how one might retain the fruitful idea of firms as moral agents, yet avoid CAP. A common approach (...) to avoiding CAP appeals to specific features of human embodiment, such as vulnerability to pain, as the basis for attributing moral rights to human persons but not to firms. But that response has less purchase in a Kantian framework, which does not ground moral status in such particularities of human embodiment, but rather in the rational nature that humans share with other rational beings. To avoid CAP while retaining a (broadly) Kantian framework, one does better to rely on features of firms as cooperative, compositionally derivative moral agents, created for the pursuit of specific ends. As derivative agents, firms do not qualify as Kantian ends in themselves, and thus are not appropriate bearers of basic moral rights. To further clarify the level of consideration we owe to firms, I draw on Darwall’s distinction between recognition respect and moral esteem, arguing that we should not respect firms as unconditional ends in themselves, but rather esteem morally autonomous firms as collective achievements of their human members. (shrink)

Without doubt, the global challenges we are currently facing—above all world poverty and climate change—require collective solutions: states, national and international organizations, firms and business corporations as well as individuals must work together in order to remedy these problems. In this chapter, I discuss climate change mitigation as a collective action problem from the perspective of moral philosophy. In particular, I address and refute three arguments suggesting that business firms and corporations have no moral duty to reduce greenhouse (...) gas emissions: (i) that business corporations are not appropriate addressees of moral demands because they are not moral agents, and (ii) that to the extent that they are moral agents their primary moral obligation is to their owners or shareholders, and (iii) the appeal to the difference principle: that individual business corporations cannot really make a significant difference to successful climate change mitigation. (shrink)

The business firm, called here the Evolutionary Firm, is shown to be a phenomenon of nature. The firm’s motives, organization, productivity, strategy, and moral significance are a direct outgrowth of natural evolution. Its managers, directors, and employees are natural agents enacting and responding to biological, physical, and ecological impulses inherited over evolutionary time from ancient human ancestors. The Evolutionary Firm’s moral posture is a function of its economizing success, competitive drive, quest for market dominance, social (...) contracting skills, and the neural algorithms found in the minds of its executives and directing managers. Behavioral, organizational, and societal contradictions arise from the normal expression of these nature-based executive impulses, so that the business corporation cannot simultaneously satisfy society’s moral expectations and perform its nature-dictated economic functions. (shrink)

Three principles must be taken into account in assessing the social responsibilities of international business firms in developing areas. The first is an awareness of the historical and institutional dynamics of local communities. This influences the type and range of responsibilities the firm can be expected to assume; it also reveals the limitations of any universal codes of conduct. The second is the necessity of non-intimidating communication with local constituencies. This requires the firm to temper its power (...) and influence by recognizing and responding to local concerns in the pursuit of its own objectives. The third is the degree to which the firm's operations safeguard and indeed improve the social and economic assets of local communities. At issue is the question of adequate compensation for the inevitable disruptions that an international business brings to a local community. Beneficial returns must be shared and sustained over the long term in an equitable manner. The nine studies in this special edition illustrate in different ways the importance of these three principles. (shrink)

The business firm, called here the Evolutionary Firm, is shown to be a phenomenon of nature. The firm’s motives, organization, productivity, strategy, and moral significance are a direct outgrowth of natural evolution. Its managers, directors, and employees are natural agents enacting and responding to biological, physical, and ecological impulses inherited over evolutionary time from ancient human ancestors. The Evolutionary Firm’s moral posture is a function of its economizing success, competitive drive, quest for market dominance, social (...) contracting skills, and the neural algorithms found in the minds of its executives and directing managers. Behavioral, organizational, and societal contradictions arise from the normal expression of these nature-based executive impulses, so that the business corporation cannot simultaneously satisfy society’s moral expectations and perform its nature-dictated economic functions. (shrink)

The business firm, called here the Evolutionary Firm, is shown to be a phenomenon of nature. The firm’s motives, organization, productivity, strategy, and moral significance are a direct outgrowth of natural evolution. Its managers, directors, and employees are natural agents enacting and responding to biological, physical, and ecological impulses inherited over evolutionary time from ancient human ancestors. The Evolutionary Firm’s moral posture is a function of its economizing success, competitive drive, quest for market dominance, social (...) contracting skills, and the neural algorithms found in the minds of its executives and directing managers. Behavioral, organizational, and societal contradictions arise from the normal expression of these nature-based executive impulses, so that the business corporation cannot simultaneously satisfy society’s moral expectations and perform its nature-dictated economic functions. (shrink)

The business firm, called here the Evolutionary Firm, is shown to be a phenomenon of nature. The firm’s motives, organization, productivity, strategy, and moral significance are a direct outgrowth of natural evolution. Its managers, directors, and employees are natural agents enacting and responding to biological, physical, and ecological impulses inherited over evolutionary time from ancient human ancestors. The Evolutionary Firm’s moral posture is a function of its economizing success, competitive drive, quest for market dominance, social (...) contracting skills, and the neural algorithms found in the minds of its executives and directing managers. Behavioral, organizational, and societal contradictions arise from the normal expression of these nature-based executive impulses, so that the business corporation cannot simultaneously satisfy society’s moral expectations and perform its nature-dictated economic functions. (shrink)

The Art Firm explores the seemingly unorthodox alliance of the arts, management, and marketing. Art firms—as avant-garde enterprises and arts corporations—have existed for at least two hundred years, using texts, images, and other types of art to create corporate wealth. This book investigates how to apply the methods artists use in creating value to the methods more traditional managers use in running their businesses. Guillet de Monthoux offers a crash course in aesthetics from Kant to Gadamer, showing how aesthetic (...) management and metaphysical marketing can create value. Using case studies of successful art managers from Richard Wagner to Robert Wilson, the author illustrates the creative role—so central to value-making in contemporary economies—performed by aesthetic play in art firms. Along the way, Guillet de Monthoux points out how responsible aesthetic management and marketing can eradicate the problems of banality and totality, the two capital sins of an art-based economy. (shrink)

Most research on the corporate philanthropy of organizations has focused on the external benefits of such initiatives for firms, such as benefits for firm reputation and opportunities. However, many firms justify their giving, in part, due to the positive impact it has on their employees. Little is known about the effectiveness of such efforts, or how they can be managed strategically to maximize impact. We hypothesize a main effect of office-level corporate philanthropy on average employee attitudes in that office, (...) but also investigate three strategies that offices may use to enhance this impact. Testing our hypotheses with 3 years of data on attitudes of an average of 14,577 employees in 53 offices we find support for the main effect, but mixed support for the specific strategies used to enhance impact. (shrink)

In this comment Ichallenge two of the arguments made in the paper, “Toward the Feminine Firm.” First I challenge the claim that Gilligan’swork on gender differences in moral orientation provides a logically and empirically sound foundation for an alternative theory of the firm. I cite recent work that discredits any concise notion of a feminine ethic. Second I challenge the claim that, if such a firm were to exist, it would flourish in a competitive market economy. I (...) suggest that, far from flourishing, such a firm will rapidly perish. (shrink)

The article starts by arguing that seeing the firm as a mere nexus of contracts or as an abstract entity where different stakeholder interests concur is insufficient for a “humanistic business ethos”, which entails a complete view of the human being. It seems more appropriate to understand the firm as a human community, a concept which can be found in several sources, including managerial literature, business ethics scholars, and Catholic Social Teaching. In addition, there are also (...) philosophical grounds that support the idea of business as a human community. Extending this concept, and drawing from some Phenomenological-Personalist philosophers, we propose that the firm should be seen as a particular “community of persons” oriented to providing goods and services efficiently and profitably. Being a “community of persons” emphasizes both individuals and the whole, and makes explicit the uniqueness, conscience, free will, dignity, and openness to human flourishing. This requires appropriate communication about and participation in matters which affect people’s life, and makes it essential to cooperate for the common good of the business firm and the society. (shrink)

Do firms benefit from their voluntary efforts to alleviate the many problems confronting society? A vast literature establishing a “business case” for corporate social responsibility appears to find that usually they do. However, as argued herein, the business case literature has established only that firms usually benefit from responding to the demands of their primary stakeholders. The nature of the relationship between the interests of business and those of broader society, beyond a subset of powerful primary stakeholders, (...) remains an open question despite this vast literature. This article develops a set of propositions that highlight constraints on firms’ ability to profit from CSR and outlines a set of managerial challenges on which researchers must focus their attention to truly determine whether and when firms can profit by responding to the needs of society. (shrink)

This paper examines the proposition that adopting a socially responsible, or philanthropic, management posture is not antithetic to the capitalist business model but rather can be seen as a sound approach to the development of long-term sustainability in business in a modern business environment, wherein a strand of corporate social responsibility is one core aspect of the composite utility function of the modern business. We suggest further that for many of the prominent/significant examples of the successful (...) adoption of a policy of informed benevolence in the management of employees that policy seems to be faith rooted – be that faith Christian, Buddhist, Jewish, Muslim or other. Indeed, even if one observed an organisation subject to an humanist or even atheistic based socially responsible management, one could see that as being rooted in that organisation’s ‘non-faith’ faith, or ethical bubble. Our argument also gives the lie to the proposition, in currency in some circles, that the term ‘business ethics’ is an oxymoron. To underpin the argument we cite examples (/set out mini-cases, or a mixture of these) from a range of faith based traditions including, Buddhism, the Quaker-Christian tradition, Judaism and Islam. (shrink)

In this comment Ichallenge two of the arguments made in the paper, “Toward the Feminine Firm.” First I challenge the claim that Gilligan’swork on gender differences in moral orientation provides a logically and empirically sound foundation for an alternative theory of the firm. I cite recent work that discredits any concise notion of a feminine ethic. Second I challenge the claim that, if such a firm were to exist, it would flourish in a competitive market economy. I (...) suggest that, far from flourishing, such a firm will rapidly perish. (shrink)

This paper introduces a new conceptual framework for studying moral climate in business firms, offering an alternative to other theoretical models currently in the literature. The framework integrates recent advances in organizational climate theory into a new conceptualization of the moral climate construct that explains how moral climates evolve in organizations and suggests moral climate change.

Ethics is increasingly viewed to be an important component of business education. However, assessment of the ethics component of business education has not received the same degree of examination as has assessment of the functional areas. Instead, ethics education is often simply assumed to be effective. Is it? The objective of this study is to begin to explore this question by examining the effects of the integration of ethics into a functional area of business education, specifically a (...) management principles course. The results raise questions about the effectiveness of integrating ethics across the business curriculum. (shrink)

The accurate delineation of various forms of business organization requires a comparative analysis of their objectives, functions, and organizational structures. In particular, this paper highlights differences in managerial work between business firms and non-profits exemplified by the charitable organization. It adopts as its template the theory of the marketing firm, a depiction of the modern corporation as it responds to the imperatives of customer-oriented management, namely consumer discretion and consumer sophistication. It describes in §2 the essentials of (...) the theory and its basis in consumer behavior analysis, and outlines its unique position as the organization responsible for marketing transactions, based on objective exchange, competitive markets and prices, and the deployment of the entire marketing mix. §3 deals in greater depth with the objective, strategic functions, and organization of the marketing firm in terms of the concepts of metacontingency and bilateral contingency. §4 discusses how the marketing firm differs from charities in terms of goal separation, market-based pricing and competition, the entrepreneurial process, the pursuit of customer-oriented management, and organizational structure. Particular attention is accorded the organizational differences between marketing firms and charities, which arise as a direct consequence of the distinct patterns of contingency they entail. §5 discusses the implications of the foregoing analysis and draws appropriate conclusions. (shrink)

In 1978, 16 months after Mao Zedong’s death, China’s new leader, Deng Xiaoping, introduced market reforms and an “opening” to the West that allowed the US company Hewlett-Packard to enter China in 1981. Shortly thereafter, HP began a partnership with the Chinese company Legend Computer, through which HP transferred its technology in four main areas: product technology, business model, management practices, and strategic planning processes. This technology transfer seems to be a “just exchange” in that HP received access to (...) China’s market while China received key managerial, marketing, and product technologies. Although multinationals are often criticized for their dealings with developing nations, the HP–Legend case provides an illustration of how a company from an industrialized nation can deal justly with a developing nation and assist in advancing its development. The transfer of technology from HP to Legend was facilitated by several factors, including HP’s historical willingness to help startups, its strategic posture, a favorable local environment, Legend’s recognition of its own needs, its willingness to learn from a foreign company, and the incentives to share technology that the Chinese government provided. (shrink)

The impact of smaller firm size on corporate social responsibility (CSR) is ambiguous. Some contend that small businesses are socially responsible by nature, while others argue that a smaller firm size imposes barriers on small firms that constrain their ability to take responsible action. This paper critically analyses recent theoretical and empirical contributions on the size–social responsibility relationship among small businesses. More specifically, it reviews the impact of firm size on four antecedents of business behaviour: issue (...) characteristics, personal characteristics, organizational characteristics and context characteristics. It concludes that the small business context does impose barriers on social responsibility taking, but that the impact of the smaller firm size on social responsibility should be nuanced depending on a number of conditions. From a critical analysis of these conditions, opportunities for small businesses and their constituents to overcome the constraining barriers are suggested. (shrink)

This paper presents an argument for the democratic (or 'labor-managed') firm based on ordinary jurisprudence. The standard principle of responsibility in jurisprudence ('Assign legal responsibility in accordance with de facto responsibility') implies that the people working in a firm should legally appropriate the assets and liabilities produced in the firm (the positive and negative fruits of their labor). This appropriation is normally violated due to the employment or self-rental contract. However, we present an inalienable rights argument that (...) descends from the Reformation and Enlightenment which argues that the self-rental contract, like the self-sale or voluntary slavery contract, is inherently invalid. The key intuition of the inalienable rights theory is that one cannot in fact voluntarily transfer de facto responsibility for one's actions to another person. One can only voluntarily co-operate with another person, but then one is de facto jointly responsible for the results. Just as the legal authorities legally reconstruct the criminous employer and employee as a partnership with shared responsibility, so justice demands that every firm be legally reconstructed as a partnership of all who work (working employers and employees) in the enterprise, i.e., as a democratic firm. (shrink)

In today’s competitive business market, firms that collaborate on a coopetition basis face obstacles in the form of decision-making, dependency, and trust in their competitor partners. This current study is the only one that has examined the relationship between coopetition and firm performance; yet, this relationship appears to be unclear due to the impact of trust and dependency on coopetition. This study investigates the impact of coopetition on firm performance by examining the mediating effects of decision-making and (...) open innovation on firm performance. There are 230 sets of data that were collected from the employees of Chinese small- and medium-sized enterprises through the survey method, and the data were analyzed using Partial Least Square-Structural Equation Modeling. The findings of this study indicated that open innovation has a significant mediation effect between coopetition and firm performance, and that decision-making is also an important mediating effect in bridging the relationship between coopetition and firm performance. By considering these mediators, the findings revealed that the coopetition has a significant impact on firm performance through decision-making and has a significant effect on firm performance through increasing open innovation. The findings also revealed that decision-making played a significant role in mediating the relationship between coopetition and firm performance, which in turn specified a statistically significant positive rel... (shrink)

The business case for corporate social responsibility (CSR) suggests that by doing good (i.e., engaging in CSR) a firm will do well (i.e., be profitable), and this notion has permeated the linguistic sensemaking of firm actors. But how are firms that articulate business‐case justifications evaluated by various stakeholders? We hypothesize that the way firms communicate their CSR engagement (i.e., accompanied by business‐case justifications or not) differentially impacts stakeholders’ perceived integrity, benevolence and ability trustworthiness of the (...) firm. Conducting the same online experiment with two separate samples from the United States, we replicate three results; business‐case justification for CSR reduces benevolence trustworthiness among employees, increases ability trustworthiness among investors, and has no effect on perceived trustworthiness among consumers. We discuss the implications of our findings for the CSR literature and encourage future researchers to more carefully scrutinize the implications of justifying CSR with the business case. (shrink)

This paper concerns the influence of gender on a firm’s moral and economic performance. It supports Thomas White’s intimation of a male gender bias in the value system underlying extant business theory. We suggest that this gender bias may be corrected by drawing on the concept of substantive rationality inherent in virtue-ethics theory. This feminine-oriented relationship-based value system complements the essential nature of the firm as a nexus of relationships between stakeholders. Not only is this feminine (...) class='Hi'>firm morally desirable, but it is also economically more efficient in that trust becomes a more feasible implicit contractual enforcement mechanism. In an organizational context, therefore, from both a moral and an economic perspective, long established economic man is dominated by nascent economic woman. (shrink)

“Responsible lobbying” is an increasingly salient topic within business and management. We make a contribution to the literature on “responsible lobbying” in three ways. First, we provide novel definitions and, thereby, make a clear distinction between lobbying and corporate political activity. We then define responsible lobbying with respect to its content, process, organization, and environment, resulting in a typology of responsible lobbying, a conceptual model that informs the rest of the paper. Second, the paper provides a thematic overview of (...) the current literature underpinning lobbying and the responsible firm, and the underlying paradigms informing this literature. Third, the paper makes specific suggestions for a future research agenda, ending with a consideration of methodological implications of such research. (shrink)

This paper concerns the influence of gender on a firm’s moral and economic performance. It supports Thomas White’s intimation of a male gender bias in the value system underlying extant business theory. We suggest that this gender bias may be corrected by drawing on the concept of substantive rationality inherent in virtue-ethics theory. This feminine-oriented relationship-based value system complements the essential nature of the firm as a nexus of relationships between stakeholders. Not only is this feminine (...) class='Hi'>firm morally desirable, but it is also economically more efficient in that trust becomes a more feasible implicit contractual enforcement mechanism. In an organizational context, therefore, from both a moral and an economic perspective, long established economic man is dominated by nascent economic woman. (shrink)

ABSTRACT:The ubiquity of family dominated firms in economies worldwide suggests that inquiry into the nature of the ethical frames of these types of firms is increasingly important. In the context of a social exchange approach and the norm of reciprocity, this manuscript addresses social cohesion in a dominant family firm coalition. It is argued that the factors underlying this cohesion, direct versus indirect reciprocity, shape unique attributes of family firms such as intentions for transgenerational sustainability, the pursuit of non-economic (...) goals, and strong interpersonal ties. Exchange structures, represented by direct and indirect reciprocity, lead family and non-family firms toward development of distinctive ethical frames of reference. (shrink)

This paper draws on the work of Alain Badiou and Martin Heidegger to construct a postructural theory of the firm. The ideal firm is conceived as a technology that facilitates a technology-free void/site of potential. For actors within this firm to be ethical requires their achievement of human subjecthood through aesthetic fidelity to the site-induced events. Heidegger’s concerns regarding the enframing effects of technology and his recognition of the truth-revealing qualities of art, are incorporated here into a (...) theory of the firm as an idealized, technology facilitated, aesthetic void-of-potential revealing. Authentic human being thus implies that firms-as-technology ‘get out of the way’. This theory of the firm is further revealed through Badiou’s concept of event-driven human flourishing. We embrace Badiou’s ‘ethics-of-truths’ in which fidelity to the trace of an event creates human subjecthood. We consider implications of our theory-of-the-firm for social media firms such as Alphabet and Facebook. (shrink)

This paper challenges Alasdair MacIntyre’s assertion that the modern firm — such as Google, Unilever, or Microsoft — is inimical to human flourishing within an Aristotelian framework. The paper begins by questioning MacIntyre’s rendering of utopian communities. It then addresses four specific criticisms of the modern firm to be found throughout MacIntyre’s oeuvre, namely compartmentalisation, myopia, inequality, and loss of community. Arguments are made to the effect that these criticisms do not vitiate the institutional role of the modern (...) firm in an Aristotelian context. The paper concludes with an invocation of the modern firm as institutional ideal within an evolving utopian vision of human flourishing. This is a utopian vision in which the modern firm plays a constructive, not corruptive, institutional role. (shrink)

This paper challenges Alasdair MacIntyre’s assertion that the modern firm — such as Google, Unilever, or Microsoft — is inimical to human flourishing within an Aristotelian framework. The paper begins by questioning MacIntyre’s rendering of utopian communities. It then addresses four specific criticisms of the modern firm to be found throughout MacIntyre’s oeuvre, namely compartmentalisation, myopia, inequality, and loss of community. Arguments are made to the effect that these criticisms do not vitiate the institutional role of the modern (...) firm in an Aristotelian context. The paper concludes with an invocation of the modern firm as institutional ideal within an evolving utopian vision of human flourishing. This is a utopian vision in which the modern firm plays a constructive, not corruptive, institutional role. (shrink)

Ethics training has been highlighted as essential for building and fostering business ethics in organizations. National and international trends show that over 40% of businesses have some form of business ethics training. We use data collected from 199 firms to examine the presence of ethics training in top Canadian companies and found that the presence varied by region and firm size, and that the Canadian average (35%) lags other countries.

The Business Roundtable's “Purpose of a Corporation” letter announced a shift from stockholder primacy to stakeholder primacy. Interestingly, we contend the letter's language employed a technical efficiency emphasis, suggesting a firm's executives chose to make this shift because they believed doing so would improve the firm's financial performance, via improved corporate governance. We examine whether investors actually accepted the technical efficiency arguments at face value, or in contrast believed the announcements were merely a “rational myth,” what management (...) thought investors would want to hear. We employ a 2-day cumulative abnormal return (CAR) event study for 140 publicly-held firms. Overall, we find investor support for the announcement. In addition, we found how returns to firms with prior similar announcements were negative at the time of the announcement. Also, the returns for firms having multiple signatories were positive and significant. (shrink)

This study investigates the antecedents of human rights infringements by emerging market firms. We used fuzzy set qualitative comparative analysis to examine HRIs in 245 firms based in eight emerging markets, between 2003 and 2012. Our findings disclose three equifinal configurations of high levels of HRIs, all involving EFs that have expanded to a high number of foreign markets: large, old, low performing state-owned enterprises operating in high quality institutions’ home and host markets, small, young, over-performing EFs operating in low (...) quality institutions’ home and host markets, and finally large, old, high performing SOEs, operating in low quality institutions’ home and host markets. We contribute to the literature by examining a novel dataset on HRIs by EFs, and by building a configurational explanation of HRIs that bridges the arguments of the institutional theory and strain theory literatures on corporate wrongdoing. (shrink)

Whether firms can be said to be moral agents and to have the capacity for moral responsibility has significant practical consequences. In most legal systems in the world, business firms are recognized as persons with the ability to own property, to maintain and defend lawsuits, and to self-organize governance structures. To recognize that these business persons can also act morally or immorally as organizations, however, would justify the imposition of other legal constraints and normative expectations on organizations. In (...) the criminal law, for example, the idea that an organized firm may itself have criminal culpability is accepted in many countries (such as the United States) but rejected in others (such as Germany). This book collects new contributions by leading business scholars in business ethics, philosophy, and related disciplines to extend our understanding of the moral responsibility of firms. (shrink)

Despite the centrality of the topic for the debate on sustainability, future generations have largely been ignored by business ethics. This neglect is in part due to the enormous philosophical challenges posed by the concepts of future generations and intergenerational duties. This article reviews some of these difficulties and defends that much clarity would be gained from making a distinction between future generations and the next generations. It also argues that the concept of next generations offers a better starting (...) point for business ethics to incorporate the topic in its research agenda. We then suggest four potential pathways to explore this territory. The four approaches build on the notion of organizations as communities with memory and vision, on the narrative shape of organizational life, on the affinity of stakeholders with the next generation, and on systems of indirect reciprocity. These first two approaches are connected to communitarian approaches to business ethics, and the last two engage in a dialog with contractarian views and stakeholder theory. The article ends with some implications for theory and practice. (shrink)

Corporate concentration is currently being discussed as a core reason for the crisis of democratic capitalism. It is seen as a prime mover for wage stagnation and alienation, economic inequalities and discontent with democracy. A tacit coalition of progressive anti-monopoly critiques and small business promoters considers more deconcentrated corporate structures to be a panacea for the crisis of democratic capitalism, arguing that small firms in competition are better for employment, equality and democracy. This paper offers a brief outline of (...) ideas of the anti-monopoly and small business ideal and critically evaluates whether a more deconcentrated economy may live up to these promises. While we agree that the plea for strengthened antitrust enforcement contains relevant and promising prospects for reform, our analysis concludes on a decidedly critical note. In particular, we caution against romanticized notions of the small capitalist firm. (shrink)

In four new and nine previously published essays, Joseph Heath provides a compelling new framework for thinking about the moral obligations of economic actors. The "market failures" approach to business ethics that he develops provides the basis for a unified theory of business ethics, corporate law, economic regulation, and the welfare state.

Since the Second World War, Japanese firms have gone from being ridiculed in the West for poor quality products to being highly praised and imitated for their success in manufacturing innovation, quality standards and management philosophy. Arguably, however, one area in which Japanese firms can be said to lag behind their western counterparts is in the development and articulation of policies mandating ethical business practices. In its own markets, but particularly abroad, Japanese business has been accused of a (...) variety of ethical shortcomings, including racial and sexual discrimination, bribery, environmental irresponsibility and the flouting of local laws and customs. This article will consider the reasons for the apparent lag in conduct, examine the issues involved, consider the likelihood of imminent change and offer some personal observations on the subject. (shrink)

The place of contemporary commerce within human experience is intertwined with the Technological Project , the attempt of the Scientific Revolution to master and possess nature. The TP works best within the framework of the modern free market, which encourages competition and innovation.A free market economy requires a government characterized by the rule of law, which acts as a constraint on government and which safeguards the freedom of autonomous persons. This historically-based and non-technical account of the place of the political (...) economy within human experience is attested in the works of major philosophers, and has the further advantage of not being based on the understanding of hidden and timeless laws.Nevertheless, Business Ethics is currently dominated by a scientism that views commerce according to a-historical and objective norms discovered through various competing sciences in which theory precedes practice.However, the role of Business Ethics is not to say in advance what ought to be the case and then to re-fashion practice accordingly, but rather to explicate what is actually the case, and thus to make explicit the underlying and contingent norms from historically attested phenomena.Such an approach to Business Ethics is firmly rooted in the philosophical and humanistic traditions, and escapes the dangers of ideological generalization inherent in today’s democratic socialism. (shrink)

David Ellerman has proposed an argument for the democratic firm based on a principle of ordinary jurisprudence, the principle of responsibility. The responsibility principle says that people are to be held legally responsible for the results of their intentional deliberate actions. Ellerman contends that laborers ought to constitute the firm and appropriate its whole product, because production is the intentional deliberate action of laborers. The employment contract is thus invalid, and every firm ought to be reconstructed as (...) a partnership of all those who work in the enterprise. This article argues that there are two flaws in his argument. The first flaw is Ellerman's focus on a distinction between people and things, rather than on the varying forms of participation in an action, including participating by contributing tools. An analogy with the concept of criminal accomplices shows that those who contribute capital to an enterprise could share responsibility for production along with laborers. The second flaw is that while responsibility is inalienable, when responsibility produces a property right, that property right is alienable. The employment contract could be reconceived as a type of futures contract, selling a claim on the eventual whole product in return for something like a fixed wage. (shrink)

The paper maps out an alternative to a behavioural (economic) approach to business ethics. Special attention is paid to the fundamental philosophical principle that any moral ‘ought’ implies a practical ‘can’, which the paper interprets with regard to the economic viability of moral agency of the firm under the conditions of the market economy, in particular competition. The paper details an economic understanding of business ethics with regard to classical and neo-classical views, on the one hand, and (...) institutional, libertarian thought, on the other hand. Implications are derived regarding unintentional and passive intentional moral agency of the firm. The paper moves on to suggest that moral agency can be economically viable in competitive ‘market’ interactions, which is conventionally disputed by classical/neo-classical and institutional, libertarian economics. The paper here conceptualises active moral agency of the firm as the utilisation of ethical capital in firm--stakeholder interactions. This yields a reinterpretation of instrumental stakeholder theory. (shrink)