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 self-regulation  ethical norms  reputation games  unforeseen contingencies  fuzzy logic and default reasoning  reciprocity and fairness  conformist preferences
Categories (categorize this paper)
DOI 10.1007/s10551-006-9239-6
Options
Edit this record
Mark as duplicate
Export citation
Find it on Scholar
Request removal from index
Revision history

Download options

PhilArchive copy


Upload a copy of this paper     Check publisher's policy     Papers currently archived: 68,916
Through your library

References found in this work BETA

The View From Nowhere.Thomas Nagel - 1986 - Oxford University Press.
Convention: A Philosophical Study.David Kellogg Lewis - 1969 - Cambridge, MA, USA: Wiley-Blackwell.
Morals by Agreement.David P. Gauthier - 1986 - Oxford University Press.
The view from nowhere.Thomas Nagel - 1986 - Revue Philosophique de la France Et de l'Etranger 178 (2):221-222.

View all 17 references / Add more references

Citations of this work BETA

View all 14 citations / Add more citations

Similar books and articles

Analytics

Added to PP index
2009-01-28

Total views
75 ( #151,940 of 2,497,780 )

Recent downloads (6 months)
1 ( #428,370 of 2,497,780 )

How can I increase my downloads?

Downloads

My notes