Central to the United Nations Framework setting out the human rights responsibilities of corporations proposed by John Ruggie is the principle that corporations have a responsibility to respect human rights in their operations whether or not doing so is required by law and whether or not human rights laws are actively enforced. Ruggie proposes that corporations should respect this principle in their strategic management and day-to-day operations for reasons of corporate self-interest. This paper identifies this as a serious weakness and (...) argues that identifying the responsibility to respect human rights as an explicitly ethical obligation to be respected for that reason would provide a much stronger justificatory foundation for respecting the principle seen from a corporateperspective, given that corporations are accountable to their shareholders for their deployment of the firm’s financial resources. (shrink)

Abstract: Stakeholder theorists have typically offered both a business case and an ethics case for business ethics. I evaluate arguments for both approaches and find them wanting. I then shift the focus from ethics to law and ask: “Why should corporations obey the law?” Contrary to what shareholder theories typically imply, neoclassical or profit maximization theories of the firm can offer answers based only on instrumental justifications. Instrumental justifications for obeying the law, however, are pragmatically and normatively incoherent. This is (...) because the modern corporation is a legal artifact. It exists because communities create the legal framework necessary for its existence. Individual corporations can therefore be said to owe their existence to a partnership (what might be called a social contract) between shareholders and governments, a partnership that is itself built on the shared though often implicit understanding that corporations have an unconditional (categorical) obligation both to obey the law and to treat their stakeholders ethically while generating wealth for their shareholders. (shrink)

This paper argues that widely accepted understanding of the respective responsibilities of business and government in the post war industrialized world can be traced back to a tacit social contract that emerged following the second world war. The effect of this contract was to assign responsibility for generating wealth to business and responsibility for ensuring the equitable sharing of wealth to governments. Without question, this arrangement has resulted in substantial improvements in the quality of life in the industrialized world in (...) the intervening period. I argue that with advance of economic globalization and the growing power and influence of multi national corporations, this division of responsibilities is not longer viable or defensible. What is needed, fifty years after the United Nations Declaration of Human Rights, is a new social contract that shares responsibilities for human rights and related ethical responsibilities in a manner more in keeping with the vision captured by the post war Declaration. I conclude by suggesting some reasons for thinking that a new social contract may be emerging. (shrink)

The paper begins with an examination of traditional attitudes towards business ethics. I suggest that these attitudes fail to recognize that a principal function of ethics is to facilitate cooperation. Further that despite the emphasis on competition in modern market economies, business like all other forms of social activity is possible only where people are prepared to respect rules in the absence of which cooperation is rendered difficult or impossible. Rules or what I call the ethics of doing, however, constitute (...) just one dimension of ethics. A second has to do with what we see and how we see it; a third with who we or what I describe as the ethics of being. Of these three dimensions, the first and the third have been most carefully explored by philosophers and are most frequently the focus of attention when teaching business ethics is being discussed. I argue that this focus is unfortunate in as much as it is the second dimension which falls most naturally into the ambit of modern secular educational institutions. It is here that moral education is most obviously unavoidable, and most clearly justifiable in modern secular teaching environments. I conclude by describing the importance of this second dimension for the modern world of business. (shrink)

We provide a brief history of the business and human rights discourse and scholarship, and an overview of the articles included in the special issue.

This study focuses on the practice of punishment, as it is inflicted by the state. The author's first-hand experience with penal reform, combined with philosophical reflection, has led him to develop a theory of punishment that identifies the principles of sentencing and corrections on which modern correctional systems should be built. This new theory of punishment is built on the view that the central function of the law is to reduce the need to use force in the resolution of disputes. (...) Professor Cragg argues that the proper role of sentencing and sentence administration is to sustain public confidence in the capacity of the law to fulfil that function. Sentencing and corrections should therefore be guided by principles of restorative justice. He points out that, although punishment may be an inevitable concomitant of law enforcement in general and sentencing in particular, inflicting punishment is not a legitimate objective of criminal justice. The strength and appeal of this account is that it moves well beyond the boundaries of conventional discussions. It examines punishment within the framework of policing and adjudication, analyses the relationship between punishment and sentencing, and provides a basis for evaluating correctional practices and such developments as electronic monitoring. (shrink)

We provide a brief history of the business and human rights discourse and scholarship, and an overview of the articles included in the special issue.

Using 15 years of data (1995–2009) from literature reviews, survey questionnaires, personal interviews, and desktop research, the authors examine North American (Canada, Mexico, and the United States of America) regional trends in business ethics research, teaching and training. The patterns indicate that business ethics continues to flourish in North America with high levels of productivity in both quantity and quality of teaching, training and research publication outputs. Topics/themes that have been covered during the time period are treated with an acknowledgement (...) of the concomitant marginal impact on improving ethical business behavior and contexts—as recurring domestic and global scandals attest. Major North American business ethics challenges/issues to be addressed in the future are identified. (shrink)

Stakeholder theories propose that managers are responsible not only for maximizing shareholder value, but also for taking into account the well being of other parties affected by corporate decisions. While the language of stakeholder theory has been taken up in industries like mining, controversy remains. Disagreements arise not only about the apportionment of costs and benefits among stakeholders, but about who counts as a stakeholder and about how "costs" and "benefits" are to be conceived. This paper investigates these questions empirically (...) by examining how managers in one mining company talk about corporate responsibilities and by analysing the explicit and implicit values systems and moral logics which inform this talk. The investigations discovered that while some claims by stakeholder groups were readily accommodated by managers, others were not. Analysis of the value frameworks employed by the mangers confirms the views of leading stakeholder theorists that stakeholder theory is grounded in the realities of management practice and behaviour. (shrink)

This article examines whether ethical business practice enhances financial performance with respect to interorganizational favour exchange. We argue that the link between the ethicality and economic utility of interorganizational favour exchange is governed by: (1) organizational–individual interest alignment/conflict and (2) the fairness or justifiability of favour exchanges from the perspective of third parties. We classify interorganizational (IO) favour exchange into four types (Business–Personal, Personal–Business, Personal–Personal and Business–Business favour exchange). Our analysis shows that the first three types of favour exchange are (...) unethical as they involve conflicts between organizational and individual interests in one or both participating organizations that negatively affect organizational value creation. The last type of favour exchange involves organizational–individual interest alignment in both participating organizations and positively affects the capacity of those involved in the exchange to create value. Favour exchanges of this fourth variety are ethically justifiable unless they unfairly damage the legitimate interests of third parties. In the latter case, these favour exchanges create the risk of negative third party reactions, which in turn affect the sustainability of the benefits of the favour exchanges to the focal group (the dyad). Our research results advance understanding of the ethical and economic implications of IO favour exchange, counter the prejudice against this behaviour in organizations, provide ethical guidance for management and business practice, and have implications for the relationship between doing well and doing good. (shrink)

Corporate governance has resurfaced as a topic in the ongoing financial crises. This article frames the debate on corporate governance within the ongoing concerns about the corporate role in wider societal governance. It then maps out the context of the six scholarly contributions in this special issue by highlighting how the current debate moves towards a closer integration of governance at corporate and societal level.

We provide a brief history of the business and human rights discourse and scholarship, and an overview of the articles included in the special issue.

Is it possible to design a forest policy that satisfies ethical and environmental concerns and is acceptable to business, labour and First Nations representatives? What is the best path through the tangle of ethical issues surrounding the collapse of the east coast fishery? What sort of obligations does a rich nation such as Canada have to satisfy the claims of global environmental justice? These are the sorts of issues in applied ethics that are tackled in this collection of essays, the (...) vast majority of which have been written especially for this volume. It is the first Canadian collection of its kind. The book is divided in to sections detailing with such topics as the environment and the economy; ethical issues relating to non-human animals; issues of gender; and issues relating to native peoples. Most of the authors are philosophers, though specialists in geography, geology, and the social sciences are also among the contributors. Frequent reference is made to theoretical ethical concerns, but the focus throughout is on applied ethics, and a variety of case studies are included. (Examples include essays on animal rights and the case of native hunters; surface mining in Northern Ontario, the Quebec arctic; and fishing communities in the Maritimes.) Comparisons are frequently drawn to policies and ethical questions arising in other countries-most prominently the United States. (shrink)