A social contract account for CSR as an extended model of corporate governance (I): Rational bargaining and justification [Book Review]
David Bourget (Western Ontario)
David Chalmers (ANU, NYU)
Rafael De Clercq
Jack Alan Reynolds
Learn more about PhilPapers
Journal of Business Ethics 68 (3):259 - 281 (2006)
This essay seeks to give a contractarian foundation to the concept of Corporate Social Responsibility (CSR), meant as an extended model of corporate governance of the firm. It focuses on justification according to the contractarian point of view (leaving compliance and implementation problems to a related article, [Sacconi 2004b, forthcoming in the Journal of Business Ethics]). It begins by providing a definition of CSR as an extended model of corporate governance, based on the fiduciary duties owed to all the firm’s stakeholders. Then, by establishing the basic context of incompleteness of contracts and abuse of authority, it analyses how the extended view of corporate governance arises directly from criticism of the contemporary neo-institutional economic theory of the firm. Thereafter, an application of the theory of bargaining games is used to deduce the structure of a multi-stakeholder firm, on the basis of the idea of a constitutional contract, which satisfies basic requirements of impartial justification and accordance with intuitions of social justice. This is a sequential model of constitutional bargaining, whereby a constitution is first chosen, and then a post-constitutional coalition game is played. On the basis of the unique solution given to each step in the bargaining model, the quest for a prescriptive theory of governance and strategic management is accomplished, so that I am able to define an objective-function for the firm consistent with the idea of CSR. Finally, a contractarian potential explanation for the emergence of the multi-fiduciary firm is provided.
|Keywords||fiduciary duties stakeholder theory theory of the firm incompleteness of contracts social contract bargaining games distributive justice impartiality|
|Categories||categorize this paper)|
Setup an account with your affiliations in order to access resources via your University's proxy server
Configure custom proxy (use this if your affiliation does not provide a proxy)
|Through your library|
References found in this work BETA
No references found.
Citations of this work BETA
Francis Weyzig (2009). Political and Economic Arguments for Corporate Social Responsibility: Analysis and a Proposition Regarding the Csr Agenda. [REVIEW] Journal of Business Ethics 86 (4):417 - 428.
Alessandro Zattoni (2011). Who Should Control a Corporation? Toward a Contingency Stakeholder Model for Allocating Ownership Rights. Journal of Business Ethics 103 (2):255-274.
Frances Chua & Asheq Rahman (2011). Institutional Pressures and Ethical Reckoning by Business Corporations. Journal of Business Ethics 98 (2):307 - 329.
Jennifer Kuzma & Aliya Kuzhabekova (2011). Corporate Social Responsibility for Nanotechnology Oversight. Medicine, Health Care and Philosophy 14 (4):407-419.
Christine Mallin, Giovanna Michelon & Davide Raggi (2013). Monitoring Intensity and Stakeholders' Orientation: How Does Governance Affect Social and Environmental Disclosure? [REVIEW] Journal of Business Ethics 114 (1):29-43.
Similar books and articles
Lorenzo Sacconi (1999). Codes of Ethics as Contractarian Constraints on the Abuse of Authority Within Hierarchies: A Perspective From the Theory of the Firm. [REVIEW] Journal of Business Ethics 21 (2-3):189 - 202.
Silvia Ayuso & Antonio Argandoña, Responsible Corporate Governance: Towards a Stakeholder Board of Directors?
Hoje Jo & Maretno A. Harjoto (2011). Corporate Governance and Firm Value: The Impact of Corporate Social Responsibility. [REVIEW] Journal of Business Ethics 103 (3):351-383.
Diana C. Robertson (2009). Corporate Social Responsibility and Different Stages of Economic Development: Singapore, Turkey, and Ethiopia. [REVIEW] Journal of Business Ethics 88 (4):617 - 633.
Pedro Francés-Gómez & Ariel Ridelo (2008). Stakeholder's Preference and Rational Compliance: A Comment on Sacconi's “CSR as a Model for Extended Corporate Governance II: Compliance, Reputation and Reciprocity”. Journal of Business Ethics 82 (1):59 - 76.
Pedro Francés-Gómez (2003). Some Difficulties in Sacconi's View About Corporate Ethics. Journal of Business Ethics 42 (2):165 - 180.
Lorenzo Sacconi & Giacomo Degli Antoni, A Theoretical Analysis of the Relationship Between Social Capital and Corporate Social Responsibility: Concepts and Definitions.
Lorenzo Sacconi, CSR as Contractarian Model of Multi-Stakeholder Corporate Governance and the Game-Theory of its Implementation.
Lorenzo Sacconi (2007). A Social Contract Account for CSR as an Extended Model of Corporate Governance (II): Compliance, Reputation and Reciprocity. [REVIEW] Journal of Business Ethics 75 (1):77 - 96.
Added to index2009-01-28
Total downloads28 ( #97,310 of 1,699,827 )
Recent downloads (6 months)5 ( #128,702 of 1,699,827 )
How can I increase my downloads?