Codes of ethics as contractarian constraints on the abuse of authority within hierarchies: A perspective from the theory of the firm [Book Review]
David Bourget (Western Ontario)
David Chalmers (ANU, NYU)
Rafael De Clercq
Jack Alan Reynolds
Learn more about PhilPapers
Journal of Business Ethics 21 (2-3):189 - 202 (1999)
Abuse of authority is an unsolved problem in the new institutional theory of the firm. This paper attempts a double attack to this problem by developing a contractarian view of corporate codes of ethics. From the ex-ante standpoint the paper elaborates on the idea of a Social Contract based on Co-operative Bargaining Games and deduces from it the fair/efficient 'Constitution' of the firm endorsed by means of a well-devised corporate code of ethics. From the ex-post standpoint, codes of ethics are proved to be self-enforcing norms, by showing how they put at work the mechanism of a Repeated Game of Reputation within hierarchical transactions (firms) characterised by incomplete contracts and unforeseen events. To accomplish this task a theory of rationality in the face of unforeseen contingencies is sketched by working out the idea that the domain of a principle of ethics defines a fuzzy event, i.e. an event to which also the ex-ante unforeseen, unimaginable states of the world belong to a certain degree.
|Keywords||No keywords specified (fix it)|
|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
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.
Similar books and articles
Lori Holder-Webb & Jeffrey Cohen (2012). The Cut and Paste Society: Isomorphism in Codes of Ethics. [REVIEW] Journal of Business Ethics 107 (4):485-509.
Till Talaulicar (2009). Barriers Against Globalizing Corporate Ethics: An Analysis of Legal Disputes on Implementing U.S. Codes of Ethics in Germany. [REVIEW] Journal of Business Ethics 84 (3):349 - 360.
Mark S. Schwartz (2005). Universal Moral Values for Corporate Codes of Ethics. Journal of Business Ethics 59 (1-2):27 - 44.
Jang B. Singh (2006). A Comparison of the Contents of the Codes of Ethics of Canada's Largest Corporations in 1992 and 2003. Journal of Business Ethics 64 (1):17 - 29.
Ben Wempe (2008). Four Design Criteria for Any Future Contractarian Theory of Business Ethics. Journal of Business Ethics 81 (3):697 - 714.
Maurica Lefebvre & Jang B. Singh (1992). The Content and Focus of Canadian Corporate Codes of Ethics. Journal of Business Ethics 11 (10):799 - 808.
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.
Pedro Francés-Gómez (2003). Some Difficulties in Sacconi's View About Corporate Ethics. Journal of Business Ethics 42 (2):165 - 180.
Lorenzo Sacconi (2006). A Social Contract Account for CSR as an Extended Model of Corporate Governance (I): Rational Bargaining and Justification. [REVIEW] Journal of Business Ethics 68 (3):259 - 281.
Added to index2009-01-28
Total downloads7 ( #194,809 of 1,101,814 )
Recent downloads (6 months)3 ( #128,762 of 1,101,814 )
How can I increase my downloads?