We critically assess integrative social contracts theory (ISCT) and show that the concept particularly lacks of moral justification of substantive hypernorms. By drawing on Habermasian philosophy, in particular discourse ethics and its recent application in the theory of deliberative democracy , we further advance ISCT and show that social contracting in business ethics requires a well-justified procedural rather than a substantive focus for managing stakeholder relations. We also replace the monological concept of hypothetical thought experiments in ISCT by a concept (...) of practical discourse to better govern business activities on the macro-level of organizational actors such as firms, governments, and NGOs. (shrink)

Joseph Heath's Communicative Action and Rational Choice may be read as a critical commentary upon Habermas's critical social theory, but it may also be read as merely using the latter as “scaffolding” for the presentation of Heath's own version of critical theory. In what follows, I will focus on the second option and thus largely ignore the exegetical question to what extent Heath provides a fair reading of Habermas. This does not mean, however, that I will not make comparative judgements. (...) On the contrary, my overall claim will be that Heath's new critical theory is more functionalist, and. partly as a result, less critical than Habermas's. Since lack of space does not permit me to argue this in accordance with the standards of detail that Heath's own book generally observes, my procedure may be justified by the attempt to provoke a clarificatory response from Heath. (shrink)