In the past few years, business ethics has emerged as a broad and important
concept, universities are offering seminars, corporations are sending their managers
on trainings, and an enormous literature body seems to be emerging out of nowhere.
In contrast to this movement, the ‘globalization bible’, the novel NoLogo written by
journalist Naomi Klein draws a different picture: it accuses companies and CEOs of
antisocial behaviour. Consumer capitalism on the one hand and at the same time
articles about sweatshops, bad working conditions, and ‘famous’ names like the
Brent Spar platform, Sao Wiwa and Shell, and Nike sweatshops support the negative
image of MNCs.
In the following I would therefore like to examine why certain corporations seem to
take on corporate responsibility while others, as stated in Klein’s novel, act as ‘the big
brand bullies’. I seek to answer in this paper why business ethics as a concept is not
an oxymoron (cp. Collins 1994) per se and why in the words of John L. Campbell
“given the incentives for maximizing profit and shareholder value, let alone acting
opportunistically, why would a corporation ever act in socially responsible ways, even
at the most minimal level” (947).
In general, there are three main approaches to the grounds of acting socially
responsible: there are moral reasons, economic reasons and institutional reasons.
First of all I would like to start by giving some theoretical basics. Subsequently moral,
economic and institutional theories as an explanation for the implementation of
business ethics will be examined. Because each of these three parts is considered
equally important they will all be covered, but concessions need to be made due to
the enormous width of the topic. I would then like to come up with a diagnosis and
possible topics to ‘walk the talk’ and finally draw a conclusion.
Table of Contents
1. Introduction
2. Theoretical Basics
2.1 Defining Moral and Ethics
2.2 Building a Bridge to Business Ethics
2.3 Corporate Social Responsibility
2.4 The World is Flat: The Phenomenon of Globalisation
3. Moral Insights
4. Economic Insights
5. Institutional Insights
6. Resumé and ‘Walk the Talk’
7. Conclusion
Research Objectives and Themes
The primary objective of this paper is to examine why corporations adopt corporate social responsibility (CSR) while others resist it, challenging the notion that business ethics is an oxymoron by exploring the moral, economic, and institutional drivers behind responsible corporate behavior.
- The theoretical foundations of ethics and morality in a business context
- The interplay between global economic pressures and corporate ethics
- Different stakeholder theories and their role in organizational decision-making
- The economic rationale for CSR as a long-term investment strategy
- Strategies for aligning corporate operations with ethical principles
Excerpt from the Book
2.1 Defining Moral and Ethics
In order to come to common grounds I would like to begin by defining moral and ethics as they are oftentimes used incorrectly and/ or interchangeably. This confusion traces back to the roots of these two terms. Both terms are derived from the Greek word ethos which has two meanings in Greek but is translated into Latin with only mos, that is morality (cp. Küpper 13). According to Crane, A. and D. Matten morality is “concerned with the norms, values, and beliefs embedded in social processes which define right and wrong for an individual or a community” (8). Right and wrong for an individual or a community can vary, and this is why morality can not be given a fixed definition: different cultures and even people can have a distinctive conception of morality. So if there are different cultural areas involved such as Asia, the US and Europe it becomes clear that distinctive perspectives on business ethics also exist. As morality is in this view context dependent and subjective the ethical theory behind this conception is called Ethical Relativism (in contrast to Ethical Absolutism, a theory claiming that there are universally applicable moral principles. Traditional ethical theories are based on this concept.)
Ethics is the teaching of moral action and to give again a definition by Crane, A. and D. Matten “Ethics is concerned with the study of morality and the application of reasons to elucidate specific rules and principles that determine right and wrong for a given situation. These rules and principles are called ethical theories” (8). There are various ethics which would in German be called “Bindestrich- Ethiken”, meaning applied ethics. Business ethics, media ethics, women’s ethics would be examples of these. Ethos as a term stands for a bundle of moral norms and expectations and is the inner commitment of an individual to adhere to certain norms. The receivers of ethos are different groups of profession.
Summary of Chapters
1. Introduction: The introduction outlines the tension between the rise of business ethics and the critique of multinational corporations as "big brand bullies," setting the stage to explore why companies engage in social responsibility.
2. Theoretical Basics: This chapter defines the core concepts of morality and ethics, establishes the levels of business ethics, explains Corporate Social Responsibility (CSR), and addresses the implications of globalization.
3. Moral Insights: This section investigates the concept of the "Economic Man" (Homo Oeconomicus), discusses the Adam-Smith-Problem, and distinguishes between consequentialist and non-consequentialist ethical theories.
4. Economic Insights: This chapter analyzes the economic critique of CSR, specifically focusing on shareholder versus stakeholder value, and examines the empirical link between corporate responsibility and financial performance.
5. Institutional Insights: This part explores how institutions and external stakeholders influence corporate behavior, utilizing stakeholder theory to explain why companies are increasingly held accountable for their societal impact.
6. Resumé and ‘Walk the Talk’: The author provides a personal diagnosis, noting that CSR is often relegated to the end of the value chain, and suggests methods like "licence to operate" to integrate ethics into core operations.
7. Conclusion: The conclusion synthesizes the moral, economic, and institutional findings, emphasizing that in a flattened world, corporations can no longer avoid the necessity of acting in a socially responsible manner.
Keywords
Corporate Social Responsibility, Business Ethics, Stakeholder Theory, Globalization, Moral Philosophy, Homo Oeconomicus, Economic Insights, Institutional Theory, Sustainability, Triple Bottom Line, Corporate Citizenship, Ethical Relativism, Shareholder Value, CSR Performance, Corporate Governance
Frequently Asked Questions
What is the fundamental focus of this research paper?
The paper explores the motivations behind why corporations adopt socially responsible practices, analyzing these actions through moral, economic, and institutional perspectives.
What are the primary thematic areas covered in the study?
The core themes include ethical theory foundations, the evolution of stakeholder models, the economic impact of CSR, and the pressures imposed by globalization on modern corporations.
What is the main research objective?
The goal is to move beyond the cynical view that business ethics is an oxymoron and to determine why and how corporations incorporate ethical considerations into their strategic decision-making.
Which scientific methods are applied?
The paper employs a theoretical analysis, synthesizing existing literature, ethical frameworks, and economic models to provide a comprehensive diagnosis of corporate social responsibility.
What topics are discussed in the main body of the work?
The main body treats the conceptualization of ethics and morals, the historical and theoretical development of CSR models (like Carroll’s Pyramid), and the practical link between stakeholder engagement and firm performance.
Which key terms characterize this research?
Key terms include Corporate Social Responsibility (CSR), Stakeholder Theory, Homo Oeconomicus, Sustainability, and the Triple Bottom Line.
How does the author define the "Adam-Smith-Problem"?
The author discusses the apparent contradiction between Smith's focus on self-interest in "The Wealth of Nations" and his earlier emphasis on human empathy and moral sentiments in "Theory of Moral Sentiments".
What does "Walk the Talk" signify in this context?
It refers to the author's diagnosis that companies often treat CSR as a peripheral, ex-post activity, arguing that they must instead integrate social responsibility directly into their core business processes and production chains.
What is the significance of the "World is Flat" reference?
The author uses Thomas Friedman’s concept to illustrate how globalization has leveled the playing field, making it essential for corporations to adopt ethical standards as they navigate an increasingly interconnected and transparent global market.
Why is the "licence to operate" concept important?
The author suggests this as a potential resolution to move beyond superficial corporate philanthropy, proposing that firms should view their right to conduct business as contingent upon generating value that benefits society at large.
- Citar trabajo
- Marlene Speth (Autor), 2008, Zur Begründung einer Übernahme ethischer Verantwortung in Unternehmen, Múnich, GRIN Verlag, https://www.grin.com/document/115801
