Hostname: page-component-5c6d5d7d68-thh2z Total loading time: 0 Render date: 2024-08-16T20:16:10.889Z Has data issue: false hasContentIssue false

The Fragile Structure of Free-Market Society

The Radical Implications of Corporate Social Responsibility

Published online by Cambridge University Press:  23 January 2015

Abstract:

In this article thinking on corporate social responsibility (CSR) is compared with the dominant political theory of the market: the neoclassical theory. The comparison shows that thinking on CSR fundamentally collides with that theory. For example, their respective normative 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.

Type
Articles
Copyright
Copyright © Society for Business Ethics 2004

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Alec Gee, J. 1991. “The Neoclassical School.” In A Modern Guide to Economic Thought, ed. Mair, D. and Miller, A.. (Brookfield: Edward Elgar): 71108.Google Scholar
Arrow, K. J. 1973. “Social Responsibility and Economic Efficiency.” Public Policy 21: 303317.Google Scholar
Baumol, W. J. 1952/1965. Welfare Economics and the Theory of the State (London: London School of Economics / University of London).Google Scholar
Baumol, W. J. 1975. “Business Responsibility and Economic Behavior,” in Managing the Socially Responsible Corporation, ed. Anshen, M. (London: MacMillan): 5974.Google Scholar
Baumol, W. J., and Blackman, S. J. Batey. 1991. Perfect Markets and Easy Virtue: Business Ethics and the Invisible Hand.Google Scholar
Beauchamp, T. 1982/1991. Philosophical Ethics. An Introduction to Moral Philosophy (2nd edition) (New York: McGraw-Hill).Google Scholar
de Beus, J. W. 1989. Markt, Democratie en Vrijheid. Een Politiek-Economische Studie. (Zwolle: Tjeenk Willink).Google Scholar
Blaug, M. 1992/1996. Economic Theory in Retrospect (5th edition) (Cambridge: Cambridge University Press).Google Scholar
Boatright, J. R. 1993/2000. Ethics and the Conduct of Business (3rd edition) (Upper Saddle River, N.J.: Prentice Hall).Google Scholar
Boatright, J. R. 1999. “Does Business Ethics Rest on a Mistake?” In Business Ethics Quarterly 9(4) (October): 583592.CrossRefGoogle Scholar
Buchanan, A. 1985. Ethics, Efficiency and the Market (Oxford: Clarendon Press).Google Scholar
Carrol, A. B. 2000. “Ethical Challenges for Business in the New Millennium: Corporate Social Responsibility and Modes of Management Morality.” Business Ethics Quarterly 10(1) (January): 3342.CrossRefGoogle Scholar
Coase, R. 1988. “The Firm, the Market and the Law.” In The Firm, the Market and the Law, ed. Coase, R. (Chicago: University of Chicago Press): 17.Google Scholar
Cobden, R. 1867. The Political Writings (in 2 volumes) (London: William Ridgway).Google Scholar
Cohen, J. L., and Arato, A.. 1992. Civil Society and Political Theory (Cambridge, Mass.: MIT Press).Google Scholar
Dahl, R. A. 1970. After the Revolution? (New Haven, Conn.: Yale University Press).Google Scholar
Dahl, R. A.. 1986. Democracy, Liberty and Equality (Oslo: Norwegian University Press).Google Scholar
Dahl, R. A.. 1989. Democracy and its Critics. (New Haven, Conn.: Yale University Press).Google Scholar
De George, R. T. 1982/1999. Business Ethics. (5th edition) (Upper Saddle River, N.J.: Prentice Hall).Google Scholar
Dewey, J. (and Boydston, J. A.. [ed.]). 1980. Ethics. The Middle Works, Volume 5: 1905 (Carbondale: Southern Illinois University Press).Google Scholar
Dewey, J. 1985. Ethics. The Later Works, Volume 7: 1932. (Carbondale: Southern Illinois University Press).Google Scholar
Dodd, E. 1932. “For Whom are Corporate Managers Trustees?” In Harvard Law Review 45: 11451157.CrossRefGoogle Scholar
Donaldson, T. 1982. Corporations and Morality. (Englewood Cliffs, N.J.: Prentice Hall).Google Scholar
Donaldson, T. 2000. “Are Business Managers ‘Professionals’?” in Business Ethics Quarterly 10(1) (January): 8394.Google Scholar
Donaldson, T., and Preston, L. R.. 1995. “The Stakeholder Theory of the Corporation: Concepts, Evidence and Implications,” in Academy of Management Review 20(1): 6591.Google Scholar
Drucker, P. F. 1974. Management. Tasks, Responsibilities, Practices (London: Heinemann).Google Scholar
Dubbink, W. 2003. Assisting the Invisible Hand. Contested Relations between Market, State and Civil Society. Issues in Business Ethics xx (Dordrecht: Kluwer).Google Scholar
Eijgelshoven, P. J., Nentjes, A., and Velthoven, B. C. J. van. 1993. Markten en overheid. (Groningen: Wolters-Noordhoff).Google Scholar
Engelen, E. 1995. De mythe van de markt. Waarheid en leugen in de economie (Amsterdam).Google Scholar
Etzioni, A. 1988. The Moral Dimension. Toward a New Economics (New York: Free Press / MacMillan).Google Scholar
Evan, W. M., and Freeman, R. E.. 1995. “A Stakeholder Theory of the Modern Corporation: Kantian Capitalism.” In Business Ethics: Readings and Cases in Corporate Morality, ed. Hoffman, W. M. and Frederick, R. E. (3rd edition) (New York: McGraw-Hill): 145153.Google Scholar
Frederick, W. M., Post, J. E., and Davis, K.. 1966/1992. Business and Society. Corporate Strategy, Public Policy and Ethics (7th edition) (New York: McGraw-Hill).Google Scholar
Freeman III, A. M., Kneese, A. V., and Haveman, R. H.. 1973. The Economics of Environmental Policy (New York: J. Wiley and Sons).Google Scholar
Freeman, R. E., and Phillips, R. A.. 2002. “Stakeholder Theory: a Libertarian Defense.” Business Ethics Quarterly 12(3): 331350.Google Scholar
Friedman, M. 1962. Capitalism and Freedom (Chicago: University of Chicago).Google Scholar
Friedman, M. 1970. “The Social Responsibility of Business is to Increase its Profits.” The New York Times Magazine (13 September).Google Scholar
Galbraith, J. K. 1958/1991. The Affluent Society (4th edition) (Harmondsworth: Penguin Books).Google Scholar
Galbraith, J. K. 1987. A History of Economics. The Past as Present (Harmondsworth: Penguin Books).Google Scholar
Gauthier, D. 1986. Morals by Agreement (Oxford: Clarendon Press).Google Scholar
Habermas, J. 1981. Theorie des kommunikativen Handelns (2 vols.) (Frankfurt am Main: Suhrkamp).Google Scholar
Habermas, J. 1992. Faktizität und Geltung. (Frankfurt am Main: Suhrkamp).Google Scholar
Hausman, D. M., and McPherson, M. S.. 1993. “Taking Ethics Seriously: Economics and Contemporary Moral Philosophy.” Journal of Economic Literature 31 (June): 671731.Google Scholar
Hayek, F. A. 1948/1980. Individualism and Economic Order (Chicago: University of Chicago Press/Midway).Google Scholar
Hayek, F. A. 1976. Law, Legislation and Liberty. A New Statement of the Liberal Principles of Justice and Political Economy (3 vols.) (London and Henley: Routledge and Kegan Paul).Google Scholar
Hirschman, A. O. 1992. Rival Views of Market Society and Other Recent Essays. (Cambridge, Mass.: Harvard University Press).Google Scholar
Hodgson, G. M. 1988. Economics and Institutions. A Manifesto for a Modern Institutional Economics (Cambridge: Polity Press).Google Scholar
Hoffman, W. M., and Fisher, J. V.. 1984. “Corporate Responsibility: Property and Liability.” In Business Ethics: Readings and Cases in Corporate Morality, ed. Hoffman, W. M. and Moore, J. M. (New York: McGraw-Hill): 142149.Google Scholar
Homann, K., and Blome-Drees, F.. 1992. Wirtschafts- und Unternehmensethik. (Göttingen: Vandenhoeck & Ruprecht).Google Scholar
Homann, K., and Blome-Drees, F.. 1994. “Marktwirtschaft und Unternehmensethik,” in Markt und Moral. Die Diskussion um die Unternehmensethik, ed. Blasche, S., Köhler, W., and Rohs, P. (Bern: Haupt): 109130.Google Scholar
Homann, K., and Blome-Drees, F.. 1997. “Sinn und Grenze der Ökonomischen Methode in der Wirtschaftsethik.” In Aufderheide, D. and Dabrowski, M., Wirtschaftsethik und Moralökonomik. Normen, soziale Ordnung und der Beitrag der Ökonomik (Berlin: Duncker and Humblot): 1141.Google Scholar
Jeurissen, R. 2000. “The Social Function of Business Ethics.” Business Ethics Quarterly 10(4): 821843.Google Scholar
Jones, G. R., George, J. M., and Hill, C. W. L.. 1998. “Ethics, Social Responsibility and Diversity.” In Jones, G. R., George, J. M., and Hill, C. W. L., Contemporary Management (Boston: Irwin McGraw-Hill): 127145.Google Scholar
Katz, W. G. 1960. “Responsibility and the Modern Corporation.” Journal of Law and Economics 3 (October): 7585.Google Scholar
Kettner, M. 1994. “Rentabilität und Moralität. Offene Probleme in Karl Homanns Wirtschaft- und Unternehmensethik.” In Blasche, S., Köhler, W. R., et al., Markt und Moral. Die Diskussion um die Unternehmensethik (St. Galler Beiträge zur Wirtschaftsethik, no 13.) (Bern: Haupt / Forum für Philosophie Bad Homburg): 241267.Google Scholar
Keynes, J. M. 1926. The End of Laissez-Faire (London: Leonard & Virginia Woolf).Google Scholar
Kneese, A. V. 1977. Economics and the Environment (Harmondsworth: Penguin Books).Google Scholar
Knight, F. H. 1935/1951. “Ethics and Economic Interpretation,” in The Ethics of Competition and Other Essays (London: George Allen & Unwin): 1940.Google Scholar
Knight, F. H. 1935/1951. “The Ethics of Competition,” in The Ethics of Competition and Other Essays (London: George Allen & Unwin): 4175.Google Scholar
Koslowski, P. 1986. Ethik des Kapitalismus (Tübingen: J. C. B. Mohr/Paul Siebeck).Google Scholar
Kromphardt, J. 1979/1991. Konzeptionen und Analysen des Kapitalismus (3rd edition) (Göttingen: Vandenhoek & Ruprecht).Google Scholar
Kymlicka, W. 1990/1995. Contemporary Political Philosophy. An Introduction (Oxford: Clarendon Press).Google Scholar
Levitt, T. 1958. “The Dangers of Social Responsibility.” Harvard Business Review 36 (September–October).Google Scholar
Lindblom, C. E. 1965. The Intelligence of Democracy (New York: The Free Press).Google Scholar
Lindblom, C. E. 1977. Politics and Markets. The World’s Political-Economic Systems. (New York: Basic Books).Google Scholar
van Luijk, H. 1993. Om redelijk gewin. Oefeningen in Bedrijfsethiek (Amsterdam: Boom).Google Scholar
van Luijk, H. 1994. “Rights and Interests in a Participatory Market Society.” Business Ethics Quarterly 4(1) (January): 7996.CrossRefGoogle Scholar
van Luijk, H., and Schilder, A.. 1997. Patronen van verantwoordelijkheid. Ethiek en Corporate Governance (Schoonhoven: Academic Service).Google Scholar
MacLagan, P. 1998. Management and Morality. A Developmental Perspective (London: Sage).Google Scholar
Marshall, A. 1890/1920/1990. Principles of Economics (8th edition) (Philadelphia: Porcupine Press).Google Scholar
Mill, J. S. (and Winch, D., ed.). 1848/1985. Principles of Political Economy. With Some of Their Applications to Social Philosophy. Books IV and V (London: Penguin Books).Google Scholar
Mill, J. S. (and Himmelfarb, G., ed.). 1859/1974. On Liberty (Harmondsworth: Penguin).Google Scholar
Mill, J. S. 1861/1991. Considerations on Representative Government (Amherst: Prometheus Books).Google Scholar
Noordegraaf, H., and Workum, J. van. 2000. “Zit het kapitalisme in een nieuwe fase?” In Maatschappelijk verantwoord ondernemen. Een nieuwe fase in het kapitalisme, ed. Noordegraaf, H. and Workum, J. van (Kampen: Uitgeverij Kok): 726.Google Scholar
Nussbaum, M. C. 1986. The Fragility of Goodness: Luck and Ethics in Greek Tragedy and Philosophy (Cambridge: Cambridge University Press).Google Scholar
Paine, L. S. 1997. (Cases in) Leadership, Ethics and Organizational Integrity. A Strategic Perspective (Chicago: Irwin).Google Scholar
Paine, L. S. 2000. “Does Ethics Pay?” Business Ethics Quarterly 10(1) (January): 319330.Google Scholar
Pearce, D. W., and Turner, R. K.. 1990. Economics of Natural Resources and the Environment (New York: Harvester Wheatsheaf).Google Scholar
Peil, J., and Garretsen, H.. 2001. “Van segregatie naar reïntegratie. De relatie tussen economie en ethiek, bezien vanuit de economie,” in Economie en Ethiek in Dialoog, ed. Becker, M., Klop, K., et al. (Assen: Van Gorcum): 938.Google Scholar
Pigou, A. C. 1920/1962. The Economics of Welfare (4th edition) (New York: MacMillan).Google Scholar
Polanyi, K. 1944. The Great Transformation (New York: Rinehart and Company).Google Scholar
Post, J. E., Lawrence, A. T., and Weber, J.. 1999. Business and Society: Corporate Strategy, Public Policy and Ethics (9th edition) (Boston: Irwin/McGraw-Hill).Google Scholar
Pribram, K. 1983. A History of Economic Reasoning (Baltimore: Johns Hopkins University Press).Google Scholar
Riemsdijk, M. 1995. “De Brent Sparr als symptoom.” Holland Management Review 44: 8286.Google Scholar
Robbins, L. 1935. An Essay on the Nature and Significance of Economic Science (London: MacMillan).Google Scholar
Robertson, D. H. 1956/1979. Economic Commentaries (Westport: Hyperion Press).Google Scholar
Robinson, J. 1962/1978. Economic Philosophy (Harmondsworth: Penguin Books).Google Scholar
Samuelson, P. A., and Nordhaus, W. D.. 1955/1985. Economics (12th edition) (New York: McGraw-Hill).Google Scholar
Scanlon, T. M. 1998/2000. What We Owe to Each Other (Cambridge, Mass.: The Belknap Press of Harvard University Press).Google Scholar
Schotter, A. 1990. Free Market Economics. A Critical Appraisal (Malden, Mass.: Basil Blackwell).Google Scholar
Schultze, C. L. 1977. The Public Use of Private Interest (Washington, D.C.: The Brookings Institution).Google Scholar
Schumpeter, J. A. 1944. Capitalism, Socialism and Democracy (London: George Allen & Unwin).Google Scholar
Schumpeter, J. A. 1954/1986. History of Economic Analysis (New York: Routledge).Google Scholar
Selznick, P. 1992. The Moral Commonwealth. Social Theory and the Promise of Community (Berkeley: University of California Press).Google Scholar
Sen, A. 1987. On Ethics and Economics (Oxford: Basil Blackwell).Google Scholar
Sen, A. 1993. “Money and Value. On the Ethics and Economics of Finance,” in Economics and Philosophy 9: 203227.Google Scholar
Sen, A. 1990. “Rational Fools: A Critique of the Behavioral Foundations of Economic Theory.” In Beyond Self-Interest, ed. Mansbridge, J. J. (Chicago: University of Chicago Press): 2543.Google Scholar
Sidgwick, H. 1887. The Principles of Political Economy (New York: MacMillan).Google Scholar
Smith, A. 1776/1910/1991. The Wealth of Nations (London: Everyman’s Library).Google Scholar
Steinmann, H., and Löhr, A.. 1991. Grundlagen der Unternehmensethik (Stuttgart: Poeschel).Google Scholar
Steinmann, H., and Löhr, A.. 1994. “Unternehmensethik—Ein republikanisches Programm in der Kritik.” In Blasche, S. and Köhler, W. R., et al., Markt und Moral. Die Diskussion um die Unternehmensethik (St. Galler Beiträge zur Wirtschaftsethik, no. 13.) (Bern: Haupt / Forum für Philosophie Bad Homburg): 145180.Google Scholar
Stone, C. D. 1975. Where the Law Ends. The Social Control of Corporate Behaviour (New York: Harper and Row).Google Scholar
van der Straaten, J. 1990. Zure regen. Economische theorie en het Nederlandse beleid (Utrecht: Jan van Arkel).Google Scholar
Tisdell, C. 1993. Environmental Economics. Politics for Environmental Management and Sustainable Development (Brookfield: Edward Elgar).Google Scholar
Tweede Kamer der Staten Generaal. Parliamentary year 19981999 (26485). Maatschappelijk verantwoord ondernemen. No. 1.Google Scholar
Ulrich, P. 1993. Transformation der Okonomischen Vernunft. Fortschrittperspectiven der modernen Industriegesellschaft (3rd edition) (Bern: Haupt).Google Scholar
Ulrich, P. 1997. Integrative Wirtschaftsethik. Grundlagen einer lebensdienlichen Ökonomie (Bern: Haupt).Google Scholar
Viner, J. 1958. The Long View and the Short (Glencoe: The Free Press).Google Scholar
Vogel, D. 1975. “The Political and Economic Impact of Current Criticism of Business,” in California Management Review 18(2) (Winter): 8692.Google Scholar
Vogel, D. 1991. “Business Ethics: New Perspectives on Old Problems,” in California Management Review 33(4) (Summer): 101117.Google Scholar
Votav, D., and Sethi, S. P.. 1969. “Do We Need a New Corporate Response to a Changing Social Environment?” California Management Review 12(1) (Autumn): 316.Google Scholar
Walton, C. C. 1967. Corporate Social Responsibilities (Belmont: Wadsworth Publishing Company).Google Scholar
Weber, M. 1921/1972. Wirtschaft und Gesellschaft. Grundriss der verstehenden Soziologie (5th edition, Studienausgabe) (Tübingen: J. C. B. Mohr).Google Scholar
Wicksell, K. 1934/1977. Lectures on Political Economy. Volume 1. (London: Augustus M. Kelly Publishers).Google Scholar