ABSTRACT:Does effective moral judgment in business ethics rely upon the identification of a suitable set of moral principles? We address this question by examining a number of criticisms of the role that principles can play in moral judgment. Critics claim that reliance on principles requires moral agents to abstract themselves from actual circumstances, relationships and personal commitments in answering moral questions. This is said to enforce an artificial uniformity in moral judgment. We challenge these critics by developing an account of (...) principle-based moral judgment that has been widely discussed by contemporary Kantian scholars. In so doing we respond to some basic problems raised by so-called “moral particularists” who voice theoretical objections to the role of principles as well as to contemporary business ethicists who have criticized principle-based moral judgment along similar lines. We conclude with some future areas of research. (shrink)

In this article thinking on corporate social responsibility is compared with the dominant political theory of the market: theneoclassical theory. The comparison shows that thinking on CSR fundamentally collides with that theory. For example, their respectivenormative views on man are incompatible, as are their respective views on the modus operandi of the market. Given that CSR is desirable it follows that a new political theory of the market is needed. This article suggests some initial steps toward developing that new political (...) theory of the market. For example, it defends the proposition that the neoclassical idea of the market as a harmonic sphere must be replaced by the idea of the market as a fragile system. (shrink)

Over the past 20 years business ethics in Europe witnessed a remarkable growth. Today business ethics is faced with two challenges. The first comes from the social sciences and consultants who have both reclaimed the topics of business ethics, regretfully often at the loss of the proper ethical perspective. The second comes from the remarkable rise of corporate social responsibility which has pushed aside the mainstream business ethics methodology with its emphasis on moral deliberation by the individual. These challenges can (...) be tackled by an institutional transformation in business ethics that links up to the long-standing European tradition of institutional analysis of the market. The second remedy is an enlargement of the research agenda in business ethics by coming closer to other parts of applied ethics where the business ethics view is at this moment grossly neglected. (shrink)

Liberalist thinking argues that moral agents have a right to pursue an ordinary life. It also insists that moral agent can be bystanders. A bystander is involved with morally bad states of affairs in the sense that they are bound by moral duty, but for a non-blameworthy reason. A common view on the morality of commercial life argues that commercial agents cannot and ought not to assume the status of bystander, when confronted with child labor, pollution, or other overwhelmingly big (...) morally bad states of affairs. According to the common view, the agent will get overdemanded. In this paper, the overdemandingness charge is interpreted as a criticism of the liberalist position. According to this charge, bystander status must be given up in the market because otherwise the right to pursue a personal life is crushed. In this paper, we demonstrate that the overdemandingness charge fails. It does not make sense if bystander status is grounded in the duty of beneficence. It would make sense if the status were grounded in the duty of rescue but that duty does not apply in relation to oMBS. The condition of ‘subjective urgency’ is not fulfilled. Hence, liberalist thinking can withstand the charge of overdemandingness and commercial agents cannot assume a right never to acknowledge bystander status. (shrink)

Moral purism is a commonly held view on moral worthiness and how to identify it in concrete cases. Moral purists long for a moral world in which (business) people—at least sometimes—act morally worthy, but in concrete cases they systematically discount good deeds as grounded in self-interest. Moral purism evokes moral cynicism. Moral cynicism is a problem, both in society at large and the business world. Moral cynicism can be fought by refuting moral purism. This article takes issue with moral purism. (...) The common strategy to tackle moral purism is to reject the exclusion thesis which states that self-interest and the ‘pure’ moral motive (and thus moral worthiness) exclude each other. We develop a different strategy. We argue that moral purists are mistaken in the way they judge moral worthiness in concrete cases. They employ the wrongprocedureand the wrongcriteria.We develop a proper procedure and proper criteria. We build on Kant, who we argue is unfairly regarded as the champion of moral purism. In order to see how Kant can develop a consistent (non-purist) philosophy, the exclusion thesis must be embedded in Kant’s transcendental philosophy. Properly embedded, Kant turns out to be both anti-purist and anti-cynical. (shrink)

Over the past 20 years business ethics in Europe witnessed a remarkable growth. Today business ethics is faced with two challenges. The first comes from the social sciences and consultants who have both reclaimed the topics of business ethics, regretfully often at the loss of the proper ethical perspective. The second comes from the remarkable rise of corporate social responsibility which has pushed aside the mainstream business ethics methodology with its emphasis on moral deliberation by the individual. These challenges can (...) be tackled by an institutional transformation in business ethics that links up to the long-standing European tradition of institutional analysis of the market. The second remedy is an enlargement of the research agenda in business ethics by coming closer to other parts of applied ethics where the business ethics view is at this moment grossly neglected. (shrink)

Transparency is a crucial condition to implement a CSR policy based on the reputation mechanism. The central question of this contribution is how a transparency policy ought to be organised in order to enhance the CSR behaviour of companies. Governments endorsing CSR as a new means of governance have different strategies to foster CSR transparency. In this paper we discuss the advantages and disadvantages of two conventional policy strategies: the facilitation policy and the command and control strategy. Using three criteria (...) (efficiency, freedom and virtue) we conclude that both strategies are defective. Most attention is paid to the facilitation strategy since governments nowadays mainly use this. In evaluating this strategy we analyse the Dutch case. As an alternative we introduce a third government policy: the development of a self-regulating sub-system. By construing an analogy with the historical development of corporate financial disclosure, we point out that the vital step in the creation of a self-regulating subsystem is the creation of strong informational intermediate organisations. (shrink)

Transparency is a crucial condition to implement a CSR policy based on the reputation mechanism. The central question of this contribution is how a transparency policy ought to be organised in order to enhance the CSR behaviour of companies. Governments endorsing CSR as a new means of governance have different strategies to foster CSR transparency. In this paper we discuss the advantages and disadvantages of two conventional policy strategies: the facilitation policy and the command and control strategy. Using three criteria (...) (efficiency, freedom and virtue) we conclude that both strategies are defective. Most attention is paid to the facilitation strategy since governments nowadays mainly use this. In evaluating this strategy we analyse the Dutch case. As an alternative we introduce a third government policy: the development of a self-regulating sub-system. By construing an analogy with the historical development of corporate financial disclosure, we point out that the vital step in the creation of a self-regulating subsys- tem is the creation of strong informational intermediate organisations. (shrink)

For years business ethics has limited the moral duties of enterprises to negative duties. Over the last decade it has been argued that positive duties also befall commercial agents, at least when confronted with large scale public problems and when governments fail. The argument that enterprises have positive duties is often grounded in the political nature of commercial life. It is argued that agents must sometimes take over governmental responsibilities. The German republican tradition argues along these lines as does Nien-Hé (...) Hsieh. Agents in commercial life are bound by positive duties because at some point they become citizens that must take on the responsibilities of the state. In this paper we leave undisputed the claim that corporations must acknowledge positive duties. However, we demonstrate that the political grounding fails, at least in the sense that this theory insufficiently acknowledges a long standing liberal tradition that vindicates apolitical markets and clear borderlines between politics and economics. We carve out an alternative route to the grounding of one specific positive duty—the duty to further justice. Our argument is based on the moral nature of commercial agents and tries to demonstrate that the duty to further justice ensues from liberalism. Taking a Kantian perspective, it conceptualizes the duty to further justice as a moral duty, orientated toward the political domain. It is grounded in the obligation to attain moral autonomy in the civil condition. (shrink)

This paper argues that economic agents, including corporations, have the duty to further justice, not just a duty merely to comply with laws and do their share. The duty to further justice is the requirement to assist in the establishment of just arrangements when they do not exist in society. The paper is grounded in liberal theory and draws heavily on one liberal theorist, Kant. We show that the duty to further justice must be interpreted as a duty of virtue (...) that is owed. This means that the duty is not enforceable but that violating this duty is still wrong and not merely non-virtuous. Our analysis has consequences for the morality of commercial life. It is often suggested that the morality of the market is a special, restricted morality that is leaner than the morality that agents must acknowledge outside the market. If our analysis is correct, the duty to further justice cannot be exempted from market morality, even if it is agreed that this must be leaner than the morality outside commercial life. Our analysis also has direct consequences for John Ruggie’s view on the responsibilities of businesses. Ruggie has never explicitly acknowledged a duty on the part of business enterprises to further justice. If our analysis is correct, his view is contradictory in that it presupposes the normative validity of free market enterprise yet shrinks from taking into account the conditions of its possibility. (shrink)

'Corporate Social Responsibility (CSR) is conceptualized in many ways. We argue that one cannot be indifferent about the issue of its conceptualization. In terms of methodology, our position is that any conceptual discussion must embed CSR in political theory. With regard to substance, we link up with the discussion on whether CSR must be defined on the basis of a tripartite or a quadripartite division of business responsibilities. We share A. B. Carroll's intuition that a quadripartite division is called for (...) as a basis to define CSR. However, defending the quadripartite division of business responsibilities requires that the distinctions between economic, legal, ethical and discretionary business responsibilities be made intelligible. Carroll's account is defective in this respect. We argue that contemporary Neo-Kantian political ethics is able to make sense of these distinctions, because of its specific interpretation of liberalism. Interestingly, from a conventional liberal perspective this interpretation of liberalism is atypical, as it extends public morality beyond the domain of the law. (shrink)

Abstract‘Corporate Social Responsibility (CSR) is conceptualized in many ways. We argue that one cannot be indifferent about the issue of its conceptualization. In terms of methodology, our position is that any conceptual discussion must embed CSR in political theory. With regard to substance, we link up with the discussion on whether CSR must be defined on the basis of a tripartite or a quadripartite division of business responsibilities. We share A.B. Carroll’s intuition that a quadripartite division is called for as (...) a basis to define CSR. However, defending the quadripartite division of business responsibilities requires that the distinctions between economic, legal, ethical and discretionary business responsibilities be made intelligible. Carroll’s account is defective in this respect. We argue that contemporary Neo-Kantian political ethics is able to make sense of these distinctions, because of its specific interpretation of liberalism. Interestingly, from a conventional liberal perspective this interpretation of liberalism is atypical, as it extends public morality beyond the domain of the law. (shrink)

This paper provides an empirical case study of the relationship between corporate social responsibility (CSR) and the new competition regulation in the Netherlands. The leading question in this case study is whether the new institutional arrangement has allowed for the possibility that reasonable exceptions can be made to the principle that inter-firm cooperation is prohibited. That is to say: does the new institutional arrangement allow for the possibility of 'well organized but not 'perfect' markets'? The investigation focuses on the Netherlands, (...) which constitutes an exemplary case as the Dutch are committed to both strengthen the competitiveness of the market and allow for exceptions on behalf of non-economic values such as CSR. The authors expect that the Dutch context will prevent a doctrinal and categorical rejecting of any good argument to make an exception to the rule that inter-firm cooperation must be prohibited. (shrink)

In latter-day discussions on corporate morality, duties of commission are fiercely debated. Moral institutionalists argue that duties of commission—such as a duty of assistance—overstep the boundaries of moral duty owed by economic agents. " Moral institutionalism" is a newly coined term for a familiar position on market morality. It maintains that market morality ought to be restricted, excluding all duties of commission. Neo-Classical thinkers such as Baumol and Homann defend it most eloquently. They underpin their position with concerns that go (...) to the core of liberalism—the dominant western political theory that sustains the ideals of both the free market and the free, rational person. Those authors claim that liberalism calls for a fully differentiated market because it resents the politicization of the market. Fully differentiated markets exclude duties of commission. They also claim that full differentiation of the market closes the troublesome gap between moral motivation and moral virtue. Full differentiation redeems the promise of "easy virtue". In this paper moral institutionalism will be rejected from a Kantian point of view, mostly inspired by Herman's thesis on the invisibility of morality. Liberalism may perhaps ban the politicization of the market; it does not forbid its moralization. The idea of a fully differentiated market must also be rejected because it is either morally over-demanding (to the morally autonomous person) or morally hazardous (to the person with failing moral motivation). Contrary to what the moral institutionalists claim, right action, morally, is actually quite difficult in fully differentiated markets. (shrink)

A crucial issue in normative ethics concerns the morality of lying. Kant defends the view that the duty to not lie does not allow for any exceptions in practical judgments: it never is a person’s right or duty to lie. Many people abhor this view. Kantians have tried to make sense of Kant’s view (and save Kantian moral philosophy) by suggesting Kantian interpretations that are less strict. I reject the attempts to nuance the strictness of Kant’s view. I break new (...) ground by arguing that Kant’s view is best made sense of by taking his strict stance seriously. I focus on his doctrine of virtue account against lying. Kant is not always strict on the interpretation of duties. As regards other duties he does leave (limited) room for exceptions. The strictness of the duty to not lie therefore is a special case intrinsically connected to key aspects of his fundamental philosophy. My explanation of the doctrine of virtue account starts out by focusing on the inner lie. For Kant each and every inner lie is problematic because being truthful is a condition and an integral part of the moral Denkungsart; i. e., way virtue manifests itself in the empirical world. Hence, an inner lie must be interpreted as the destruction of freedom and personhood. Kant’s doctrine of virtue view on the inner lie also implies a strict view on the outer lie. Developing this implication requires the analysis of Kant’s view on human self-knowledge and their propensity to evil. (shrink)

This paper provides an empirical case study of the relationship between corporate social responsibility (CSR) and the new competition regulation in the Netherlands. The leading question in this case study is whether the new institutional arrangement has allowed for the possibility that reasonable exceptions can be made to the principle that inter-firm cooperation is prohibited. That is to say: does the new institutional arrangement allow for the possibility of `well organized but not `perfect’ markets’? The investigation focuses on the Netherlands, (...) which constitutes an exemplary case as the Dutch are committed to both strengthen the competitiveness of the market and allow for exceptions on behalf of non-economic values such as CSR. The authors expect that the Dutch context will prevent a doctrinal and categorical rejecting of any good argument to make an exception to the rule that inter-firm cooperation must be prohibited. (shrink)

Some critics raise moral objections against corporate social responsibility on account of its supposedly undemocratic nature. Theyargue that it is hard to reconcile democracy with the private discretion that always accompanies the discharge of responsibilities that are not judicially enforceable. There are two ways of constructing this argument: the “perfect-market argument” and the “social-power argument.” This paper demonstrates that the perfect-market argument is untenable and that the social-power argument is sometimes valid. It also asserts that the proponents of the perfect-market (...) argument are mistaken in their assumption that perfect markets are conducive to democracy. There are strong reasons to hold that perfect markets are undesirable from a democratic point of view. A proper conceptualization and differentiation of the relation between “the private and the public” can make this clear. The proponents of the social-power argument sometimes maintain that the democratic deficit can be compensated for by consulting the stakeholdersaffected. Against this, I will argue that the social power argument has nothing to offer affected parties. Still, it will be shown that moderntheory on corporate social responsibility is not well accommodated to the democratic deficit as revealed by the social power argument. (shrink)

This chapter describes the concept Corporate Social Responsibility (CSR) in detail. We define CSR as the moral responsibility that companies have that goes beyond the bare minimum (abiding by minimal market morality), but that is nevertheless morally required. Because CSR is required, and not optional, it is different from philanthropy. The first part of this chapter presents the position of the proponents of CSR but also a view that denies that corporations are morally required to do more than the bare (...) minimum: the Friedman-Homann doctrine. The chapter describes the debate between these two positions. In the second part, we discuss four operationalized approaches that companies can use to make moral choices in practice: the shareholder approach, the stakeholder approach, the corporate citizen approach, and the market failures approach. (shrink)

This textbook not only provides the student with a solid foundation in ethics, but introduces students to the most important themes relevant to business today. Issues such as human rights violation down in the supply chain, the effect business has on nature and the environment, and inclusiveness are each discussed in separate chapters, which discuss their importance, but also their challenges. While there are numerous business ethics textbooks, few take a philosophical approach to business ethics. However, without introducing philosophical ethics, (...) discussions about business ethics are bound to get stuck in fallacies and paradoxes. This textbook therefore fills an important societal gap by providing an introduction to profound philosophical issues in clear language at a philosophically high, but accessible level. (shrink)

This chapter deals with the question to what extent market participants can have moral responsibilities. It starts with a discussion on the nature of responsibility, and then raises the question whether organizations, such as companies can bear responsibility (at all). While some philosophers have been skeptical, we list some reasons to think that companies can be moral agents. Subsequently, we discuss whether companies actually should assume moral responsibilities. There are a number of commonly heard arguments about why companies should or (...) may not be bothered with moral responsibilities: i. the market is an amoral sphere, and ii. the only responsibility that companies have is to increase their profits. We describe the problems with these arguments, and discuss the concept of minimal market morality. This concept describes the minimally required moral responsibilities that companies need to abide by. (shrink)

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What is morality about? This chapter explores morality by distinguishing between its formal object and its material object. Formally speaking morality concerns (the evaluation of) human (inter)action insofar as it is desired or required. It is distinguished from other normative evaluations by its focus on things that are fundamentally desirable or required. In terms of contents or its material object four contexts are described in which moral issues arise: (i) when fundamental (human) rights come into play; (ii) when question about (...) the good life arise; (iii) when our thinking goes astray; (iv) when our virtuousness and the development of our character can grow or be affected by our actions. (shrink)

Is morality not relativistic and without ground? A big difference between almost any other culture and our modern culture is that people often are confronted with skeptical questions about the grounding and the meaning of morality. Even people who affirm morality’s importance find it hard to reply to the moral skeptic’s questions. That is why an introduction into business ethics must devote attention to the ground and meaning of morality. In view of morality’s meaning, we discuss two ways in which (...) morality must be given meaning: in terms of human personhood and the constitution of society. As regards to the ground of morality, we select two popular topics: “free will” and “relativism” and discuss if, how, and when the denial of free will and the affirmation of relativism affect the idea that morality has a ground. (shrink)

This chapter introduces business ethics as a subdiscipline of ethics. Ethics concerns human (inter)action insofar as it relates to what is desirable or required. Business ethics is the subdiscipline that deals with all issues of business that are directly or indirectly related to human actions, interactions or the consequences thereof. The chapter explains what business ethics is about by contextualizing it within the discipline philosophy. The latter is defined as thinking about thinking.