Managers often have discretion in interpreting their ethical requirements, and they should seek democratic guidance in doing so. The undemocratic nature of managerial ethical discretion is shown to be a recurring problem in business ethics. Joseph Heath’s market failures approach (MFA) is introduced as a theory better positioned to deal with this problem than other views. However, due to epistemic uncertainty and conceptual indeterminacy, the MFA is shown to allow a much wider range of managerial discretion than initially (...) appears. The paper explores how this range can be narrowed down with democratic input, comparing models based on formal state institutions and on the informal public sphere. A case study from the pharmaceutical industry illustrates the merits of the informal public sphere approach. (shrink)

An introduction to the March, 2005 symposium "The Political Theory of Organizations: A Retrospective Examination of Christopher McMahon's "Authority and Democracy" held in San Francisco as part of the Society for Business Ethics Group Meeting at the Pacific Division Meetings of the American Philosophical Association.

An introduction to the March, 2005 symposium “The Political Theory of Organizations: A Retrospective Examination of Christopher McMahon’s Authority and Democracy” held in San Francisco as part of the Society for Business Ethics Group Meeting at the Pacific Division Meetings of the American Philosophical Association.

A comparative study of business related values among business students was conducted over the last 10 years in two neighbouring countries. Although Estonia and Finland are culturally related, according to an empirical study of managerial values, including the ethical values of business students, the two countries display significant differences. During the last decade, Estonia has changed from being a country characterised by an authoritarian, centralized, totalitarian state socialism, to a democratic country with a free market economy and different attitudes (...) and values. At the same time Finland has experienced almost a century of capitalism and democracy. It is argued that the differences in values exhibited by these two countries could be explained by using the institutional and historical context. The authors propose a model of value hierarchies in relation to institutionalism. (shrink)

Workplace democracy is often advocated on two intertwined views. The first is that the authority relation of employee to firm is akin to that of subject to state, such that reasons favoring democracy in the state may likewise apply to the firm. The second is that, when democratic controls are absent in the workplace, employees are liable to objectionable forms of subordination by their bosses, who may then issue arbitrary directives on matters ranging from pay to the allocation (...) of overtime and to relocation and promotion. Daniel Jacob and Christian Neuhäuser have recently submitted these views to careful criticism. They argue that the parallel between firms and states is unwarranted. For, unlike managerial authority, state authority is final. The state grants firms their legal status and subjects their authority to its regulations, which citizens in democracies already control. And they also argue that suitable workplace regulation alongside meaningful exit options may suffice to prevent, with no need for democratization, objectionable forms of workplace subjection. Neither view offers, they resolve, compelling reasons to believe that justice requires that firms be democratic. I here inspect these criticisms in turn, and offer reasons for skepticism. (shrink)

In the wake of the 2008 global financial crisis, an important conceptual battleground for democratic theorists ought to be, it would seem, the capitalist firm. We are now painfully aware that the typical model of government in so-called investor-owned companies remains profoundly oligarchic, hierarchical, and unequal. Renewing with the literature of the 1970s and 1980s on workplace democracy, a few political theorists have started to advocate democratic reforms of the workplace by relying on an analogy between firm and state. (...) To the extent that a firm is an organization comparable to the state, it too ought to be ruled along democratic lines. Our paper tests the robustness of the analogy between firm and state by considering six major objections to it: the objection from a difference in ends, the objection from shareholders’ property rights, the objection from worker’s consent, the objection from workers’ exit opportunities, the objection from workers’ expertise, and the objection from the fragility of firms. We find all of these objections wanting. While the paper does not ambition to settle the issue of workplace democracy at once, our goal is to pave the way for a more in-depth study of the ways in which firms and states can be compared and the possible implications this may have for our understanding of the nature of managerial authority and the governance of firms. (shrink)

Should the democratic exercise of authority that we take for granted in the realm of government be extended to the managerial sphere? Exploring this question, Christopher McMahon develops a theory of government and management as two components of an integrated system of social authority that is essentially political in nature. He then considers where in this structure democratic decision making is appropriate. McMahon examines the main varieties of authority: the authority of experts, authority grounded in a promise to obey, (...) and authority justified as facilitating mutually beneficial cooperation. He also discusses the phenomenon of managerial authority, the authority that guides nongovernmental organization, and argues that managerial authority is best regarded not as the authority of a principal over an agent, but rather as authority that facilitates mutually beneficial cooperation among employees with different moral aims. Viewed in this way, there is a presumption that managerial authority should be democratically exercised by employees. Originally published in 1994. The Princeton Legacy Library uses the latest print-on-demand technology to again make available previously out-of-print books from the distinguished backlist of Princeton University Press. These editions preserve the original texts of these important books while presenting them in durable paperback and hardcover editions. The goal of the Princeton Legacy Library is to vastly increase access to the rich scholarly heritage found in the thousands of books published by Princeton University Press since its founding in 1905. (shrink)

Corporate news organizations are often accused of placing more emphasis on profits than on information diversity and other non?profit goals considered crucial for creating or maintaining a political democracy. These charges contradict the managerial revolution hypothesis, which expects that as power shifts from the owners to the professional managers and technocrats, a corporate organization should place less emphasis on profits and more emphasis on non?profit goals. This study reviews the literature on the managerial revolution hypothesis and empirically (...) tests hypotheses related to the control question. The data generally support the managerial revolution thesis: newspaper owners (proprietors and stockholders) and publishers have less control over editorial content the more ?corporatized? the newspaper. This shift in power, if true, has major implications for theories of democracy and information diversity. (shrink)

Although McMahon offers a potentially valuable extension of Joseph Raz's conceptualization of authority by distinguishing three different kinds of authority, this paper argues, first, that his account of the conditions and considerations that would justify managerial authority is problematic because it relies on a conception of reasons for action that excludes precisely the kind of rationality that plays an important role in the␣explanation and justification of authority in economic␣organization. This paper explains, second, why McMahon's thesis of the justificatory similarity (...) of authority in governments and nongovernmental organizations can also be seen to hold for corporate governance of publicly owned firms more specifically. Finally, this paper raises some critical objections against McMahon's presumption of democratic governance in governments and NGO's alike. The thrust of these objections is that democratic corporate governance does not make sense in the publicly owned firms because: it will not produce results that are fair or welfare maximizing, and it will undermine the legitimacy of managerial authority in such firms. (shrink)

Christopher McMahon links political theory and business ethics and thereby takes the latter to a new level of philosophical sophistication. McMahon argues that legitimate authority, political or managerial, characteristically preempts certain of one’s judgments, so that one may reasonably submit to a directive to do something that contravenes one’s principles. Authoritative preemption does not involve weighing reasons pro and con, as one who is considering breaking a promise must do: it disqualifies competing considerations.

The republican case for workplace democracy is presented and defended from two alternative means of ensuring freedom from arbitrary interference in the firm—namely, the right to freely exit the firm and workplace regulation. This paper shows, respectively, that costless exit is neither possible nor desirable in either perfect or imperfect labor markets, and that managerial discretion is both desirable and inevitable due to the incompleteness of employment contracts and labor legislation. The paper then shows that WD is necessary, (...) from a republican standpoint, if workers’ interests are to be adequately tracked in the exercise of managerial authority. Three important objections are finally addressed— that WD is redundant, that it is unnecessary provided that litigation and unionism can produce similar outcomes, and that it falls short of ensuring republican freedom compared to self-employment. (shrink)

Using Australia to illustrate the case, in this paper it is argued that the transformation of universities into businesses and the undermining of the liberal arts is motivated by either contempt for or outright hostility to democracy. This is associated with a global managerial revolution that is enslaving nations and people to the global market and the corporations that dominate it. The struggle within universities is the site of a struggle to reverse the gains of the Radical Enlightenment, (...) the tradition of Enlightenment that, committed to upholding and developing the civic humanism of the Renaissance, strove for liberty, understood as democratic self-governance. The central place the liberal arts had in upholding this liberty is shown. Inspired by the Ancient Greek notion of paideia, the liberal arts, which originated in republican Rome, was the form of education required designed for free people, in opposition to the specialist education appropriate for slaves, to inspire them to maintain their liberty and enable them to govern themselves. While not always upholding this ideal, it is argued in this paper that the liberal arts always kept alive this quest for liberty, bequeathing this quest to the Renaissance philosophers and to the proponents of the Radical Enlightenment. With managerialism and the undermining of democracy, such education and the questioning, creative people it produced, are now seen as a threat to the new global corporatocracy who, to achieve cultural hegemony, have coöpted university managers and academics to impose their agenda to cripple the liberal arts. Their goal, never fully articulated as such but successfully prosecuted, is a dumbed-down population. (shrink)

This article explores the role of the university in the demise of democracy. In a country which was once seen as the world’s leading democracy, albeit one in which the democracy was harnessed to the requisite constraints of a republic, almost half of the population believe that the last two elections were stolen, and Presidents Trump and Biden were not legitimate. Democracies in Western Europe are equally factious. What prevails now in the West is a general inability (...) for voters to be able to put aside personal differences and accept defeat at the ballot box. The willingness to accept defeat and be able to trust your political opponents not to destroy the institutions of the nation is the prerequisite for the preservation of a democratic system. The dominant factions which face each other with unmitigated suspicion can broadly be classified as the tertiary educated urban professional classes who are allied with globalist and corporate “leaders,” and the more regionally based and non-professional classes. More specifically, I focus on the class interests of the pedagogical classes, particularly those employed in the tertiary sector and the media (loosely construed as the class which makes a living from crafting, monitoring and disseminating ideas); the technocratic character of that class; the metaphysical ideas that have propelled the empowerment of that class and its importance as educators; the ideological consensuses that have triumphed in the academy in the twentieth century; and how the ideology of emancipation that has been forged in universities, and the managerial revolution that has enabled the corporatization of the university, have contributed to the demise of democracy. (shrink)

Managers vs. Owners: The Struggle for Corporate Control in American Democracy deals with a subject of profound importance: understanding the place of the modern corporation in a democratic society. This latest volume in the acclaimed Ruffin Series in Business Ethics describes how the balance between corporate power and government regulation has changed with the interests of society as a whole. The first section examines the debates over the rules that individuals or organized groups would agree to follow in their (...) interactions to accrue social advantages. The second section looks at management's point of view and tells how law promotes the need for managerial collective action and provides a vocabulary for articulating management as a profession. The authors conclude by looking at the impact of collective investor action - especially institutional investors - on the efforts by managers to preserve their autonomy. This examination of the inherent conflicts between the interests of corporate owners, the interests of the larger society, and the interests of managers who run corporations will be essential reading for students, scholars, and professionals concerned with the place of the large corporation in a democratic society. (shrink)

In this paper, I examine the case made by Christopher McMahon for managerial democracy. Specifically, I examine the extent to which McMahon’s account is able to address a series of objections against the case for managerial democracy as articulated by Thomas Christiano. Christiano articulates two sets of objections. First, Christiano argues that McMahon does not succeed in ruling out the possibility that managerial authority is best understood as promissory in its basis, in which case there (...) is no presumption in favor of its democratic exercise. Second, Christiano raises a series of objections to the effect that even if we accept McMahon’s account of the nature of managerial authority, the conclusion for the democratic exercise of that authority by workers at the level of individual economic enterprises does not follow. In the end, I argue that McMahon’s account contains the resources to address these objections if one adopts a specific view about the moral limits to relationships that involve the submission of the will on the part of one person to another. Adoption of this view, however, appears to come at the expense of what I take to be the account’s commitment to liberalism. As such, what I understand this paper to reflect more generally is the apparent difficulty for liberals in arguing that there is something inherently morally troubling about capitalist work relations. (shrink)

In the intellectual confusion prevailing since the demise of Marxism and “marxism”, the attempt is made to define democracy as a matter of pure procedure, explicitly avoiding and condemning any reference to substantive objectives. It can easily be shown, however, that the idea of a purely procedural “democracy” is incoherent and self-contradictory. No legal system whatsoever and no government can exist in the absence of substantive conditions which cannot be left to chance or to the workings of the (...) “market” but must be posited as objectives of political activity. The confusion results from a deficient understanding of what makes a society and an empty idea of “freedom”. The objective of politics is not happiness, an affair to be left to the individuals, but it certainly is liberty understood as participation in the governance of the polity; it is also the pursuit of the common good, defined as the sum of the prerequisites and facilitations of individual autonomy depending on collective action, and as the realization of commonly agreed collective goals. (shrink)

In this volume philosophers from throughout the Asia-Pacific region discuss a wide range of topics related to the development of democratic values and ways of life. The papers explore ideas, values and practices related to democracy from the different perspectives of the great religious and philosophical traditions of Asia, as well as considering both philosophical issues and the place of philosophy in a democratic society. While the contributors represent different philosophical traditions, they are connected through a common concern with (...) humanity, a belief in the value of philosophical inquiry and scholarship and by a commitment to the value of philosophy education in building and sustaining democracy. (shrink)

A response to the discussants, Nien-hê Hsieh, Jeffrey Moriarty and J. (Hans) van Oosterhout, who took part in the March, 2005 symposium “The Political Theory of Organizations: A Retrospective Examination of Christopher McMahon’s Authority and Democracy: A General Theory of Government and Management” held in San Francisco as part of the Society for Business Ethics Group Meeting at the Pacific Division Meetings of the American Philosophical Association.

PC Wars: Politics and Theory in the Academy addresses the very issue of political correctness and the current skirmishes in the culture wars. It includes statements from many of our leading contemporary public intellectuals, including Joan Wallach Scott, Michael Be;rube;, Bruce Robbins, Henry Giroux, and Gerald Graff. The collection marks a watershed in the debate about "pc" in that it presents serious considerations and analyses of the factors, causes, and consequences of the culture wars. Carefully examining the construction of "pc," (...) PC Wars analyses political correctness by focusing on the mass media, class politics, and the ideology of managerial democracy. It places the disputes around "pc" in the context of contemporary developments in critical and cultural theory and the current backlash against theory, manifested in the recent attacks on Marxism, feminism and deconstruction. The book also scrutinizes the undercurrents of anti-intellectualism and anti-professionalism which have tended to create a fertile ground for the "pc" hysteria. Offering much more than slogans and slinging arrows, PC Wars provides a spirited and critical look at the reaction, ideology, and political forces that have coalesced around the term. Contributors: Michael Be;rube;, Reed Way Dasenbrock, Frank Farmer, Henry Giroux, Gerald Graff, Darlene Hantzis and Devoney Looser, John S. Howard and James M. Lang, Tom Lewis, James Neilson, Christopher Newfield, Richard Ohmann, Burce Robbins, Barry Sarchett, Joan W. Scott, Michael Sprinker, Jeffrey Williams. (shrink)

This article provides a historical contextualization of Corporate Social Responsibility and its political role. CSR, we propose, is one form of business–society interactions reflecting a unique ideological framing. To make that argument, we compare contemporary CSR with two historical ideal-types. We explore in turn paternalism in nineteenth century Europe and managerial trusteeship in early twentieth century US. We outline how the political responsibilities of business were constructed, negotiated, and practiced in both cases. This historical contextualization shows that the frontier (...) between economy and polity has always been blurry and shifting and that firms have played a political role for a very long time. It also allows us to show how the nature, extent, and impact of that political role changed through history and co-evolved in particular with shifts in dominant ideologies. Globalization, in that context, is not the driver of the political role of the firm but a moderating phenomenon contributing significantly to the dynamics of this shift. The comparison between paternalism, trusteeship, and contemporary CSR points to what can be seen as functional equivalents—alternative patterns of business–society interactions that each correspond, historically, to unique and distinct ideological frames. We conclude by drawing implications for future theorizing on CSR and stakeholder democracy. (shrink)

One of the most influential recent developments in supposedly radical philosophy is ‘posthumanism’. This can be seen as the successor to ‘deconstructive postmodernism’. In each case, the claim of its proponents has been that cultures are oppressive by virtue of their elitism, and this elitism, fostered by the humanities, is being challenged. In each case, however, these philosophical ideas have served ruling elites by crippling opposition to their efforts to impose markets, concentrate wealth and power and treat everyone and everything (...) as mere instruments in a way that is not only undermining democracy and threatening economic, social and political stability through growing inequality, but is crippling efforts to deal with the global ecological crisis. Philosophers, Nietzsche claimed, are physicians of culture. Why should people claiming to be philosophers, or at least aligned with philosophers, subvert their own calling? In this paper I will suggest that with the expansion of education and the rise of neoliberalism, those involved in education and research, particularly in the humanities and social sciences, have been proletarianized, and most have accepted this proletarianization. They have been reduced to a fraction of the proletariat - wage-slaves without economic security and therefore dependent on the will of others on whom they are dependent. They are not ordinary wage-slaves, however, but wage-house-slaves, having salaries rather than wages. If, as Marx argued, social being determines consciousness, posthumanism can be understood as the expression of ressentiment of these house-slaves at their condition while simultaneously serving to affirm their superiority to field-slaves while serving their masters. Their work is supported because it provides ideological cover for their masters, the new transnational managerial class or corporatocracy as they expand their power through information technology, while absolving this corporatocracy from responsibility for the consequences of their growing power. In making this claim I will argue that the real target of deconstructionists and posthumanists, although this is now seldom appreciated, has been the humanism of the New Left, a revival of the Radical Enlightenment inspired by Renaissance civic humanism and the German Renaissance. (shrink)

Our paper draws attention to a neglected channel of corruption—the bribe payments by state-owned enterprises. This is an important phenomenon as bribe payments by SOEs fruitlessly waste national resources, compromising public welfare and national prosperity. Using a large dataset of 30,249 firms from 50 countries, we show that, in general, SOEs are less likely to pay bribes for achieving organizational objectives owing to their political connectivity. However, in deteriorated institutional environments, SOEs may be subjected to potential managerial rent-seeking behaviors, (...) which disproportionately increase SOE bribe propensity relative to privately owned enterprises. Specifically, our findings highlight the importance of fostering democracy and rule of law, reducing prevalence of corruption and shortening power distance in reducing the incidence of SOE bribery. (shrink)

The article deals with theoretical, practical, partly - historical aspects of scientific research of modern Ukrainian and foreign sociologists and social workers. The aim of the research is to analyze and summarize the following three key aspects: a) historical destructive moments in the development of Ukrainian/Soviet sociology; b) the orientation of the vector of postmodernist research of foreign scholars who had no censorship restrictions on their works; c) the main problematics of current Ukrainian sociological research. The latter, despite their deep (...) materialistic tradition, find opportunities for new non-empirical approaches. In the article with the help of analysis of methodical sources, generalization of their content and presentation and interpretation of individual statistical data the authors substantiate: socio-economic, managerial and pedagogical reasons can systematically present the problematics of the current research of social workers. However, the postmodern aspect, still not "reworked" by the Ukrainian society, has not yet left its final mark on the social research. The international significance of the article lies in the interest of countries of transitional democracies and economies, previously under totalitarian influence, to acquire full emancipation and neo-liberalization concerning social problems and humane ways of solving them. (shrink)

Corporate Social Responsibility is a label covering managerial checks and institutional balances introduced against the background of ethical values. Values are clearly formulated and organizational processes are designed with the inclusion of stakeholders and their voice in mind. In case of the post-communist societies designers of CRS cope with an additional level of complexity. Original sin of market reforms after the political fall of the communist regimes is the corrupt take-over of markets and democracies. Social institutions of capitalist markets (...) and democratic states have been subverted and invaded by the unpurged networks of the post-communist power elites. They privatized the wealth of state enterprises becoming new owners of economic resources and they drifted towards the top functions in state institutions becoming post-communist power brokers. Their long-term monopoly of the media left them in command of the mainstream PR communications long after their absolute political power was gone. Democratic institutions, and the right to free speech are daily challenged by influential image and market competition. They cannot be taken for granted. Some democratic institutions are undermined by subversive networks of the corrupt mafias often formed by ex-functionaries of the communist party and her secret services. Their tacit power is explicitly legitimized by media-clusters of cultural representatives of the communist ex-power elites exploiting leftist bias of media mainstreams. (shrink)

Almost a hundred years ago, John Dewey clarified the relationship between democracy and education. However, the enactment of a 'deeply democratic' educational practice has proven elusive throughout the ensuing century, overridden by managerial approaches to schooling young people and to the standardized, technical preparation and professional development of teachers and educational leaders. A powerful counter-narrative to this 'standardized management paradigm' exists in the field of curriculum studies, but is largely ignored by mainstream approaches to the professional development of (...) educators. This paper argues for a reconceptualized, differentiated, and 'disciplined' approach to the professional development of educators in democratic societies that builds capacity for curriculum leadership. In support of this proposal, we amplify the tenets of Dewey's pragmatic social and educational philosophy, which have long been at the heart of democratic educational thought, with Badiou's more contemporary thinking about the important relationships between truth as inspirational awakening, subjectification as existential commitment, and ethical fidelity as 'for all' action. (shrink)