And in this book the distinguished scholar Amartya Sen offers a powerful critique of the theory of social justice that, in its grip on social and political ...

The foundation for a system of morals, this 1749 work is a landmark of moral and political thought. Its highly original theories of conscience, moral judgment, and virtue offer a reconstruction of the Enlightenment concept of social science, embracing both political economy and theories of law and government.

As the 21st century breaks upon us, no ethical issues in business appear as significant as those being created by the rapidglobalization of business. Globalization has created numerous ethical problems for the manager of the multinational corporation. What does justice demand, for example, in the relations between a multinational and its host country, particularly when that country is less developed? Should human rights principles govern the relations between a multinational and the workers of a host country, and if so, which (...) principles are the correct ones? How should a multinational deal with a government in which corruption is rife? What are the ethical considerations involved in determining whether and how to transfer a risky technology to a country whose people may not be able to safely absorb that technology? What kind of labor and environmental standards should a multinational adopt when operating in a country whose government legislates only very low standards? (shrink)

At least since the publication of the monumental Strategic Management: A Stakeholder Approach (1984), the “stakeholder theory” originated by R. E. Freeman has engrossed much of the business ethics literature. Subsequently, some advocates have moved a bit too quickly and without proper definition or argument. They have exceeded Freeman’s intentions which are more libertarian and free-market than is often thought. This essay focuses on the versions of stakeholder theory directly authored or coauthored by Freeman in an effort to recover (1) (...) Freeman’s intentions and (2) the argumentative justification of stakeholder theory. It then argues that Freeman’s appeal to legal, economic, and ethical constraints ultimately produce arguments that are invalid. One can thoroughly support legislation constraining corporations or seeking to prevent age discrimination, market monopolies, and externalities and regret the extent that capitalism is heir to such shortcomings without it following that (1) business beneficiaries should be changed from stockholders to stakeholders and (2) the latter should be given serious decision-making power. Further, stakeholder theory neither defines nor battles any obvious opposition. Hence, it is difficult to see what it changes about business management. In short, stakeholder theory either changes too much about business, or nothing important at all (depending on one’s interpretation). Efforts to supplant or improve the reigning theory of capitalism will have to do better. (shrink)

At least since the publication of the monumental Strategic Management: A Stakeholder Approach, the "stakeholder theory" originated by R. E. Freeman has engrossed much of the business ethics literature. Subsequently, some advocates have moved a bit too quickly and without proper definition or argument. They have exceeded Freeman's intentions which are more libertarian and free-market than is often thought. This essay focuses on the versions of stakeholder theory directly authored or coauthored by Freeman in an effort to recover Freeman's intentions (...) and the argumentative justification of stakeholder theory. It then argues that Freeman's appeal to legal, economic, and ethical constraints ultimately produce arguments that are invalid. One can thoroughly support legislation constraining corporations or seeking to prevent age discrimination, market monopolies, and externalities and regret the extent that capitalism is heir to such shortcomings without it following that business beneficiaries should be changed from stockholders to stakeholders and the latter should be given serious decision-making power. Further, stakeholder theory neither defines nor battles any obvious opposition. Hence, it is difficult to see what it changes about business management. In short, stakeholder theory either changes too much about business, or nothing important at all. Efforts to supplant or improve the reigning theory of capitalism will have to do better. (shrink)

This article explores the possible convergence between the capabilities approach and utilitarianism to specify CSR. It defends the idea that this key issue is related to the anthropological perspective that underpins both theories and demonstrates that a relational conception of individual freedoms and rights present in both traditions gives adequate criteria for CSR toward the company's stakeholders. I therefore defend "relational capability" as a means of providing a common paradigm, a shared vision of a core component of human development. This (...) could further lead to a set of indicators aimed at assessing corporate social performance as the maximization of the relational capability of people impacted by the activities of companies. In particular, I suggest a way of evaluating the contribution of extractive companies to the communities close to their industrial sites in extremely poor areas, not from the viewpoint of material resources and growth, but from the viewpoint of the quality of the social environment and empowerment. (shrink)

Abstract:The central problems of political philosophy (e.g., legitimate authority, distributive justice) mirror the central problems of business ethics. The question naturally arises: should political theories be applied to problems in business ethics? If a version of egalitarianism is the correct theory of justice for states, for example, does it follow that it is the correct theory of justice for businesses? If states should be democratically governed by their citizens, should businesses be democratically managed by their employees? Most theorists who have (...) considered these questions, including John Rawls inPolitical Liberalism, and Robert Phillips and Joshua Margolis in a 1999 article, have said “no.” They claim that states and businesses are different kinds of entities, and hence require different theories of justice. I challenge this claim. While businesses differ from states, the difference is one of degree, not one of kind. Business ethics has much to learn from political philosophy. (shrink)

This article outlines the structure of a Rawlsian theory of justice in the employment relationship. A focus on this theory is motivated by the role it plays in debates in business ethics. The Rawlsian theory answers three central questions about justice and the workplace. What is the relationship between social justice and justice at work? How should we conceive of the problem of justice in the economic sphere? And, what is justice in the workplace? To see fully what demands justice (...) makes on the workplace, we should first spell out the implications that domestic justice has for working conditions. When this is done, we can develop a conception of workplace justice and investigate what content such local justice should have. John Rawls’s political liberalism was constructed for the specific problem of a just basic structure; in order to apply it to another problem the key theoretical concepts must be revised. Reasons for a specific construction of a local original position are given and arguments are presented in support of a principle of local justice, which takes the form of a choice egalitarian local difference principle. (shrink)

Dismissal is a major issue for distributive justice at work, because it normally has a drastic impact on an employee’s livelihood, self-esteem and future career. This article examines distributive justice under the US’s employment-at-will (EAW) system and New Zealand’s just-cause dismissal system, focusing on the three main categories of dismissal, namely misconduct, poor performance and redundancy. Under EAW, employees have limited protection from dismissal and remedies are restricted to just a few so-called exceptions. Comparatively, New Zealand’s just-cause system delivers much (...) more just outcomes, both in terms of remedies and punishments. Despite a few shortcomings, it should be considered as a reasonable reference for policy changes in the US. (shrink)

This article applies the Kantian doctrine of respect for persons to the problem of sweatshops. We argue that multinational enterprises are properly regarded as responsible for the practices of their subcontractors and suppliers. We then argue that multinationalenterprises have the following duties in their off-shore manufacturing facilities: to ensure that local labor laws are followed; to refrain from coercion; to meet minimum safety standards; and to provide a living wage for employees. Finally, we consider and reply to the objection that (...) improving health and safety conditions and providing a living wage will cause greater harm than good. (shrink)

Multinational corporations' international staffing policies have been evaluated in terms of cost and efficiency arguments. Research has not addressed, however, the ethical impact of these policies on diverse stakeholder groups. This paper presents a conceptual framework by which ethnocentric, polycentric and geocentric staffing policies are theoretically linked to underlying decision-making modes of instrumentality, bounded rationality and economic rationality, respectively. It goes on to describe the ethical rationales associated with each policy type, namely, distributive justice, moral rights of man, and utilitarianism. (...) An investigation of resulting ethical dilemmas affecting relevant MNC stakeholder groups is incorporated and offered as a tool for analyzing the true and full costs of trade-offs when choosing one policy over another. The paper concludes with a discussion of the implications of the conceptual framework for theory and practice and directions for future research. (shrink)

This article applies the Kantian doctrine of respect for persons to the problem of sweatshops. We argue that multinational enterprises are properly regarded as responsible for the practices of their subcontractors and suppliers. We then argue that multinationalenterprises have the following duties in their off-shore manufacturing facilities: to ensure that local labor laws are followed; to refrain from coercion; to meet minimum safety standards; and to provide a living wage for employees. Finally, we consider and reply to the objection that (...) improving health and safety conditions and providing a living wage will cause greater harm than good. (shrink)

Commodities and Capabilities presents a set of inter-related theses concerning the foundations of welfare economics, and in particular about the assessment of personal well-being and advantage. The argument presented focuses on the capability to function, i.e. what a person can do or can be, questioning in the process the more standard emphasis on opulence or on utility. In fact, a person's motivation behind choice is treated here as a parametric variable which may or may not coincide with the pursuit of (...) self-interest. Given the large number of practical problems arising from the roles and limitations of different concepts of interest and the judgement of advantage and well-being, this scholarly investigation is both of theoretical interest and practical import. (shrink)