This article proposes a way to zoom in on the concept of the social license to operate from the broader normative perspective of contractarianism. An SLO can be defined as a contractarian basis for the legitimacy of a company’s specific activity or project. “SLO”, as a fashionable expression, has its origins in business practice. From a normative viewpoint, the concept is closely related to social contract theory, and, as such, it has a political dimension. After outlining the contractarian normative background (...) to the SLO, we will show how academic concepts such as legitimacy and stakeholder management have a tendency to provide the intellectual underpinning for the business case for securing an SLO. While business case perspectives on the SLO may well be in line with the use of the term in business practice, we will highlight certain difficulties and ambiguities related to the instrumental use of the expression. In the final section, we briefly introduce the articles of this Special Issue to the reader and explain how they relate to the topic. (shrink)

The ‘Guiding Principles on Business and Human Rights’ (Principles) that provide guidance for the implementation of the United Nations’ ‘Protect, Respect and Remedy’ framework (Framework) will probably succeed in making human rights matters more customary in corporate management procedures. They are likely to contribute to higher levels of accountability and awareness within corporations in respect of the negative impact of business activities on human rights. However, we identify tensions between the idea that the respect of human rights is a perfect (...) moral duty for corporations and the Principle’s ‘human rights due diligence’ requirement. We argue that the effectiveness of the ‘human rights due diligence’ is in many respects dependent upon the moral commitment of corporations. The Principles leave room for an instrumental or strategic implementation of due diligence, which in some cases could result in a depreciation of the fundamental norms they seek to promote. We reveal some limits of pragmatic approaches to coping with business-related human rights abuses. As these limits become more apparent, not only does the case for further progress in international and extraterritorial human rights law become more compelling, but so too does the argument for a more forceful discussion on the moral foundations of human rights duties for corporations. (shrink)

In this paper, I will argue that it is a moral obligation for companies, firstly, to accept their moral responsibility with respect to non-discrimination, and secondly, to address the issue with a full-fledged programme, including but not limited to the countering of microsocial discrimination processes through specific policies. On the basis of a broad sketch of how some discrimination mechanisms are actually influencing decisions, that is, causing intended as well as unintended bias in Human Resources Management (HRM), I will argue (...) that the well known tools of legislation and ethical codes are necessary although insufficient to cope with the problem. However, based on empirical evidence, we know which set of measures is likely to diminish discrimination. Taking non-discrimination seriously implies complex and longitudinal policies which include assigning responsibility for a non-discrimination policy within the firm, making managers conscious of implicit stereotypes and helping them to cope with prejudices that no one can totally overcome. Insofar as corporate responsibility with respect to non-discrimination is accepted and strategies that are not prohibitively expensive are known, companies are bound to implement them. Not implementing the best set of measures may be considered at least as a moral shortcoming or, depending on the size of the company, mere lip service to the non-discrimination principle. Although the paper refers to empirical material of diverse backgrounds, its intent is clearly normative. It wishes to spell out what companies ought to do if they are committed to responsible behaviour. The discussion of effective remedies against discrimination is based on a case study of a French company. The retailer Auchan was recently surprised to learn that it was discriminating against ethnic minorities despite strong ethical standards, an ethics committee and ethical leadership. The company dropped its naïve beliefs and set up an ambitious policy cope with the issue. The case illustrates what recent empirical research has revealed about the effectiveness of diversity policies: establishing responsibility for diversity results, firm ethical commitment and support from top management make diversity programs effective. (shrink)

Despite the fact that business people and business students often cast doubt on the relevance of universal moral principles in business, the rejection of relativism is a precondition for business ethics to get off the ground. This paper proposes an educational strategy to overcome the philosophical confusions about relativism in which business people and students are often trapped. First, the paper provides some conceptual distinctions and clarifications related to moral relativism, particularism, and virtue ethics. More particularly, it revisits arguments demonstrating (...) that virtues in business are not in contradiction with the relevance of universal principles, despite the fact that virtue ethics is often identified with particular relationships and contexts. It goes on to show how students and managers, but also researchers, often mix up radically different conceptions of moral relativism. It is also argued that this confusion is in part created by the cross-cultural management literature in which the methodological stance of the value-freedom of the social sciences is, in a perplexingly mistaken way, transformed into a rejection of all normative discussion and a plea for relativism. The remainder of the paper presents some tools that may be helpful in steering people toward less simplistic views about moral relativism and virtue ethics. It further argues that it is equally important to spell out that moral universalism can be understood in a humble way, without implying either arrogant ethnocentrism or omniscience, as part of an ongoing debate that progresses gradually. (shrink)

In this paper, I will argue that it is a moral obligation for companies, firstly, to accept their moral responsibility with respect to non-discrimination, and secondly, to address the issue with a full-fledged programme, including but not limited to the countering of microsocial discrimination processes through specific policies. On the basis of a broad sketch of how some discrimination mechanisms are actually influencing decisions, that is, causing intended as well as unintended bias in Human Resources Management, I will argue that (...) the well known tools of legislation and ethical codes are necessary although insufficient to cope with the problem. However, based on empirical evidence, we know which set of measures is likely to diminish discrimination. Taking non-discrimination seriously implies complex and longitudinal policies which include assigning responsibility for a non-discrimination policy within the firm, making managers conscious of implicit stereotypes and helping them to cope with prejudices that no one can totally overcome. Insofar as corporate responsibility with respect to non-discrimination is accepted and strategies that are not prohibitively expensive are known, companies are bound to implement them. Not implementing the best set of measures may be considered at least as a moral shortcoming or, depending on the size of the company, mere lip service to the non-discrimination principle. Although the paper refers to empirical material of diverse backgrounds, its intent is clearly normative. It wishes to spell out what companies ought to do if they are committed to responsible behaviour. The discussion of effective remedies against discrimination is based on a case study of a French company. The retailer Auchan was recently surprised to learn that it was discriminating against ethnic minorities despite strong ethical standards, an ethics committee and ethical leadership. The company dropped its naïve beliefs and set up an ambitious policy cope with the issue. The case illustrates what recent empirical research has revealed about the effectiveness of diversity policies: establishing responsibility for diversity results, firm ethical commitment and support from top management make diversity programs effective. (shrink)

This paper aims at gaining a better understanding of the inherent paradoxes within sustainability discourses by investigating its basic assumptions. Drawing on a study of the metaphoric references operative in moral language, we reveal the predominance of the ‘well-being = wealth’ construct, which may explain the dominance of the ‘business case’ cognitive frame in sustainability discourses. We incorporate economic well-being variables within a philosophical model of becoming well :221–231, 2005), highlighting the way in which these variables consistently articulate a combination (...) of ‘objective’ and ‘subjective’ concerns. We then compare this broad understanding of well-being with the metaphors operative in the sustainable development discourse and argue that the sustainability discourse has fallen prey to an overemphasis on the ‘business case’. We proceed to draw on Georges Bataille to challenge the predominance of these value priorities and to explore which mindshifts are required to develop a more comprehensive understanding of what is needed to enable ‘sustainable development’. (shrink)

In this article, we explore the implicit conceptions of business ethics and social responsibility of owners−managers of small and medium enterprises (SME) in Cameroon. While using a hermeneutical approach, our main objective is to clarify how Sub-Saharan African business people themselves understand and define corporate responsibility in their particular economic and political environment. Our aim is not to deliver an empirical study of business practices and management behavior in SMEs. We wish to discuss which responsibilities they themselves judge to be (...) relevant and which can legitimately be attributed to them by third parties. Secondly, we relate our findings to other empirical work on SMEs, in Africa and elsewhere. It is shown that there are similarities with the way in which SMEs in Europe interpret their responsibility, but also striking differences. Further, we relate our findings to some theoretical controversies around corporate social responsibility (CSR) in SMEs, to questions about evaluation tools for CSR in the SME context, and to the role of CSR with respect to poverty alleviation in developing countries. (shrink)

In this survey of business ethics in Europe, we compare the present state of business ethics in Europe with the situation as described by Enderle (BEER 5(1):33–46, 1996 ). At that time, business ethics was still dominated by a mainly philosophical, normative analysis of business issues with a maximum of 25 chairs in business ethics all over Europe. It has since expanded dramatically in numbers as well as diversified into many different domains. We find this rich diversity in the conception (...) of business ethics back in the answers of our respondents to every single question. The concepts they propose, the courses they teach, the subjects under research as well as the training and consultancy offered to clients and even the challenges for the future all reflect this diversity. Decisive for the expansion of business ethics in Europe has been the advance of CSR and the official backing of CSR by the European Commission. We further argue that the prevalence and importance of business ethics and CSR differs throughout Europe. A rough approximation based on our survey results and literature review is that it is more important and more developed in core and Nordic European countries and somewhat less in Southern and Eastern European countries. The real East with countries like Belarus and Bulgaria remains a challenge. (shrink)

In this paper we evaluate the ethical aspects of a public-private partnership (PPP) for the production and distribution of electricity in a particular context, i.e.,in a developing country characterized by a high corruption rate. In general, multinational enterprises (MNE) are considered suspect in developing countries by their own populations and by others, especially in those countries perceived as corrupt. A second source of suspicion concerns the privatization of utilities: utilities such as electricity and clean water play an essential role in (...) people’s lives, thus, leaving their production and distribution in the hands of for-profit companies may seem imprudent, particularly with respect to the poorest people. On the basis of a questionnaire submitted to managers of a privatized utility company in Cameroon, this case study suggests that the combination of these two sources of suspicion does not automatically lead to negative outcomes. (shrink)

The paper analyzes managers’ stance toward the ethical responsibility of those who work for multinational garment retailers. Most are charged with the social compliance policies affecting relationships with subcontractors. This study is based on interviews conducted with major European and American retailers. Our research question is: what is the normative stance of our respondents? We find that they reject the ideological way in which the normative debate on sweatshops has been conducted by business ethicists during the last decades. These executives’ (...) implicit conception and scope of their moral responsibility is much more in line with Iris Young’s (2006) conception of ‘political responsibility’. This managerial ethical position has not been adequately captured by earlier writings on this topic. In general, the managerial ethical framing of issues like child labor, minimally decent labor conditions, a living wage, etc. is at odds with how these issues are usually treated in the philosophical debates around sweatshops. Examining both visions allows us to better grasp the pragmatic normative stance of business practitioners as well as the dynamics of social compliance policies. In the conclusion, we draw both management lessons and research implications for more ethical interactions with suppliers. (shrink)

First of all, I would like to make some remarks about the sketch given by R. Jeurissen of the recent developments in the world of business, then I will briefly discuss the central thesis of his article.Jeurissen’s article takes a specific point of view on business ethics: business ethics is an integrating force in a socio-economic world which is much more complex than it used to be. In order to show the relevance of this point of view, he sketches some (...) recent developments in the world of business. The examples he invokes should therefore serve to illustrate this tendency for ethics to act as an integrating force. However, I think one could also find examples which are less compatible with the developments he sets forth. The overall picture is selective, and gives what seems to me to be a rather optimistic account. Even the examples that are given could be interpreted in a less than encouraging way.I found some of the examples to be somewhat unclear. For instance, where it is a question of the link between an employee’s loyalty and security. Clearly, a feeling of insecurity will have negative effects on an employee’s productivity. An atmosphere in which the personnel are all engaged in looking for another job is hardly optimal. Likewise, the necessity to lower production costs does not always have to translate into job losses. Jeurissen believes that productivity can be increased by improving loyalty among the employees, but I have trouble imagining what such an ‘improved loyalty’ might consist of. One thinks spontaneously of ‘team building’ activities where groups spend a weekend together engaged in exploits such as parachute jumping and the like. This kind of group activity does indeed have an effect on productivity, but any extra productivity is only obtained during a period of time outside regular working hours. There are people who would consider it a chore to take part in such an activity, and who would prefer to spend that time with their family.A second point made by Jeurissen is less innocuous. He claims that, in general, the hierarchical system of control is disappearing . On the other hand, in describing economic changes, Jeurissen directs attention to the fact that companies are more and more shifting risks onto their employees. Short-term contracts, job flexibility and, at the limit, employees who are effectively independent sub-contractors competing amongst themselves where only the most productive are in a position to benefit are only some aspects of the increasing responsibility of employees. If the disappearance of hierarchical control is only the counterpart to this kind of risk displacement, then there is little reason for rejoicing.The article’s main thesis is this: ‘only an adequate ethics of responsibility can integrate a highly differentiated and ultra-complex society like ours.’ The corollary is that other, inadequate, forms of ethics cannot play such an integrating role, or at least not in the same way. I will not examine the question of how best to interpret this notion of integration; rather I propose to address two other questions: first of all, what is an adequate ethics of responsibility? And secondly, what are the other ethics, or the other integrating factors, which are destined to fail and therefore rejected? (shrink)

Depuis le 19e siècle, le rôle et l'importance de l'Etat ont connu une profonde évolution. Celle-ci, partant d'une conception de l'Etat assez étroite, assez proche, somme toute, de la vision Hegelienne, s'est progressivement élargie, évoluant vers une institution complexe et omniprésente dans les différents aspects de la vie quotidienne des citoyens : l'Etat-Providence. Le phénomène de mondialisation/globalisation n'a pas manqué d'affecter en profondeur le rôle de l'Etat, non seulement dans les domaines politique et économique, l'acteur étatique étant interpellé dans ces (...) deux domaines, tant sur la scène internationale que sur la scène interne, envers les citoyens. Ainsi, la réflexion sur la globalisation attire irrésistiblement le débat vers la question de la gouvernance. Face à l'affaiblissement, l'érosion ou l'assujettissement de l'Etat par rapport à un processus de globalisation qui le dépasse, certains proposent des formes alternatives de gouvernance. Dans ce contexte, le débat sur le rôle de l'acteur étatique se déploie principalement autour de trois axes. Un premier axe explore la piste d'un ordre politique avec moins d'Etat, voire la substitution de ce dernier par d'autres acteurs plus efficients. Un deuxième axe prône, au contraire, plus d'Etat pour faire contrepoids à des mouvements qui portent atteinte à la cohésion sociale. Un troisième axe, plus nuancé, conçoit l'Etat autrement, comme une instance politique à redéfinir dans sa raison d'être et ses fonctions. Il importe dès lors de réfléchir sur des formes alternatives de ce qu'on appelle désormais "gouvernance". Le présent ouvrage regroupe des travaux de politologues, philosophes, juristes et sociologues sur cette évolution de la conception et du rôle de l'Etat, ainsi que sur la conception alternative souvent avancée de la gouvernante, dans le contexte nouveau d'une globalisation, souvent présentée comme primordialement économique. (shrink)

On a general level, this paper proposes a critical analysis of one of the attempts to make bridges between economics and moral and political philosophy. A priori, we may expect that formal methods may lead to clearer and more rigorous arguments, and may facilitate practical applications. However, this paper illustrates how precision is bought at the price of becoming tautological. Therefore, the statement that "it is already widely recognized that formal methods derived from economics can contribute to ethics" seems hasty. (...) The paper is organized as follows: Section 2 discusses some philosophical background assumptions which underlie a decision theoretic argument in favour of utilitarianism. Section 3 recalls briefly John Harsanyi's decision theoretic arguments in favour of utilitarianism. It then focuses on the crucial assumption of separability in order to show that separability can always be saved as an assumption if one applies the strategy of dispersion. Section 4, finally, shows how the theorem may indeed reconcile the concern for equality and utilitarianism, at the price of becoming futile. (shrink)

This article presents a qualitative research about the way in which business leaders of a retail company gradually clarify the ethical responsibilities of their company – in an ongoing discussion of particular cases. It is based on 12 years of experience as an external member of the ethics committee. The aim of the article is not so much as to evaluate the different single decisions that were made and implemented to make the company meet high ethical standards, but rather to (...) focus on three issues and on how they relate to each other: (1) the shift from a communitarian Christian set of values to a broader secular framework of basic principles; (2) the way in which business people in a retailing company cope with issues that seem ethically troublesome, when reflected upon from a ethical point of view; and (3) how the process of ethical dialogue has led to a typology of the different levels of responsibility that retailers are willing to attribute to themselves according to the kind of problem at stake. The three issues together illustrate how a company that took the business ethics question head-on systematically moved into a particular ongoing collective learning process. (shrink)