A social contract account for CSR as an extended model of corporate governance (II): Compliance, reputation and reciprocity
Journal of Business Ethics 75 (1):77 - 96 (2007)
|Abstract||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. Whereas, justificatory issues have been discussed in a related paper (Sacconi, L.: 2006b, this journal), in this essay I focus on the implementation of and compliance with this normative model. The theory of reputation games, with reference to the basic game of trust, is introduced in order to make sense of self-regulation as a way to implement the social contract on the multi-fiduciary model of corporate governance. This affords understanding of why self-regulation, meant as mere recourse to a long-run strategy in a repeated trust game, fails. Two basic problems for the functioning of the reputation mechanism are examined: the cognitive fragility problem, and the motivational problem. As regards the cognitive fragilities of reputation (which result from the impact of unforeseen contingencies and from bounded rationality), the paper develops the logic and the structure that self-regulatory norms must satisfy if they are to serve as gap-filling tools with which to remedy cognitive limitations in the reputation mechanism. The motivation problem then arises from the possibility of sophisticated abuse by the firm. Developed in this case is an entirely new application of the theory of conformism-and-reciprocity-based preferences, the result of which is that the stakeholders refuse to acquiesce to sophisticated abuse on the part of the firm.|
|Keywords||No keywords specified (fix it)|
|Through your library||Configure|
Similar books and articles
Stephen Bear, Noushi Rahman & Corinne Post (forthcoming). The Impact of Board Diversity and Gender Composition on Corporate Social Responsibility and Firm Reputation. Journal of Business Ethics.
Chi-Shiun Lai, Chih-Jen Chiu, Chin-Fang Yang & Da-Chang Pai (forthcoming). The Effects of Corporate Social Responsibility on Brand Performance: The Mediating Effect of Industrial Brand Equity and Corporate Reputation. Journal of Business Ethics.
Marjo Elisa Siltaoja (2006). Value Priorities as Combining Core Factors Between CSR and Reputation – a Qualitative Study. Journal of Business Ethics 68 (1):91 - 111.
Lorenzo Sacconi & Giacomo Degli Antoni, A Theoretical Analysis of the Relationship Between Social Capital and Corporate Social Responsibility: Concepts and Definitions.
Junwei Shi, Haiyan Fu & Lijun Hu (2007). Social Responsibility, Social Capital, and Corporate Competitive Advantage in Transitional China. International Corporate Responsibility Series 3:377-394.
Lorenzo Sacconi, CSR as Contractarian Model of Multi-Stakeholder Corporate Governance and the Game-Theory of its Implementation.
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.
Lorenzo Sacconi (2006). A Social Contract Account for CSR as an Extended Model of Corporate Governance (I): Rational Bargaining and Justification. Journal of Business Ethics 68 (3):259 - 281.
Lorenzo Sacconi (1999). Codes of Ethics as Contractarian Constraints on the Abuse of Authority Within Hierarchies: A Perspective From the Theory of the Firm. Journal of Business Ethics 21 (2-3):189 - 202.
Added to index2009-01-28
Total downloads3 ( #201,730 of 548,984 )
Recent downloads (6 months)1 ( #63,327 of 548,984 )
How can I increase my downloads?