Perspectives on Philosophy of Management and Business Ethics_ Including a Special Section on Busines

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Unformatted text preview: Ethical Economy. Studies in Economic Ethics and Philosophy Jacob Dahl Rendtorff Editor Perspectives on Philosophy of Management and Business Ethics Including a Special Section on Business and Human Rights Ethical Economy. Studies in Economic Ethics and Philosophy Volume 51 Series Editors Alexander Brink, University of Bayreuth Jacob Dahl Rendtorff, Roskilde University Editorial Board John Boatright, Loyola University Chicago, Chicago, Illinois, USA George Brenkert, Georgetown University, Washington D.C., USA James M. Buchanan†, George Mason University, Fairfax, Virginia, USA Allan K.K. Chan, Hong Kong Baptist University, Hong Kong Christopher Cowton, University of Huddersfield Business School, Huddersfield, United Kingdom Richard T. DeGeorge, University of Kansas, Lawrence, Kansas, USA Thomas Donaldson, Wharton School, University of Pennsylvania, Philadelphia, Pennsylvania, USA Jon Elster, Columbia University, New York, New York, USA Amitai Etzioni, George Washington University, Washington D.C., USA Michaela Haase, Free University Berlin, Berlin, Germany Carlos Hoevel, Catholic University of Argentina, Buenos Aires, Argentina Ingo Pies, University of Halle-Wittenberg, Halle, Germany Yuichi Shionoya, Hitotsubashi University, Kunitachi, Tokyo, Japan Philippe Van Parijs, University of Louvain, Louvain-la-Neuve, Belgium Deon Rossouw, University of Pretoria, Pretoria, South Africa Josef Wieland, HTWG - University of Applied Sciences, Konstanz, Germany Ethical Economy describes the theory of the ethical preconditions of the economy and of business as well as the theory of the ethical foundations of economic systems. It analyzes the impact of rules, virtues, and goods or values on economic action and management. Ethical Economy understands ethics as a means to increase trust and to reduce transaction costs. It forms a foundational theory for business ethics and business culture. The Series Ethical Economy. Studies in Economic Ethics and Philosophy is devoted to the investigation of interdisciplinary issues concerning economics, management, ethics, and philosophy. These issues fall in the categories of economic ethics, business ethics, management theory, economic culture, and economic philosophy, the latter including the epistemology and ontology of economics. Economic culture comprises cultural and hermeneutic studies of the economy. One goal of the series is to extend the discussion of the philosophical, ethical, and cultural foundations of economics and economic systems. The series is intended to serve as an international forum for scholarly publications, such as monographs, conference proceedings, and collections of essays. Primary emphasis is placed on originality, clarity, and interdisciplinary synthesis of elements from economics, management theory, ethics, and philosophy. More information about this series at Jacob Dahl Rendtorff Editor Perspectives on Philosophy of Management and Business Ethics Including a Special Section on Business and Human Rights Editor Jacob Dahl Rendtorff Department of Social Sciences & Business Roskilde University, Roskilde, Denmark ISSN 2211-2707     ISSN 2211-2723 (electronic) Ethical Economy ISBN 978-3-319-46972-0    ISBN 978-3-319-46973-7 (eBook) DOI 10.1007/978-3-319-46973-7 Library of Congress Control Number: 2016962633 © Springer International Publishing AG 2017 This work is subject to copyright. All rights are reserved by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed. The use of general descriptive names, registered names, trademarks, service marks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. The publisher, the authors and the editors are safe to assume that the advice and information in this book are believed to be true and accurate at the date of publication. Neither the publisher nor the authors or the editors give a warranty, express or implied, with respect to the material contained herein or for any errors or omissions that may have been made. Printed on acid-free paper This Springer imprint is published by Springer Nature The registered company is Springer International Publishing AG The registered company address is: Gewerbestrasse 11, 6330 Cham, Switzerland Preface Welcome to the proceedings from the 2015 EBEN (European Business Ethics Network) Research Conference. The EBEN conferences have been going on each year since year 2000, and I am happy that CBS was able to host one of these conferences. This conference was organized as a cooperative project between Copenhagen Business School, Roskilde University, and EBEN Scandinavia (the Scandinavian Chapter of the European Business Ethics Network). Inside CBS the conference is also a result of a collective work cooperation between the Center for Corporate Social Responsibility at the Department of Intercultural Communication and Management and the Department of Management, Politics and Philosophy. “Philosophical Foundations of Business Ethics” is an important topic for Copenhagen Business School and Roskilde University. CBS values research on business ethics and philosophy of management, and we find it important to ask the fundamental questions of the foundations of business ethics and of the ethical economy. The research at Roskilde University is based on an interdisciplinary approach to responsibility, ethics, and legitimacy of corporations. The role of philosophy in management and leadership is important for developing good managers and reflective leaders. Topics like philosophy of management, leadership philosophy, business ethics, corporate social responsibility (CSR), corporate governance and ethics, business, law and human rights, and cultural conditioning of business ethics are essential for developing good leaders in a complex society today. Therefore, the proceedings with the papers from the conference fit very well with the series Ethical Economy: Studies in Economic Ethics and Philosophy at Springer Publishers. It is important that many people will get access to the results of the conference. In this context the topic of the conference of business ethics is in close connection with the strategy of teaching business at Roskilde University and Copenhagen Business School. The vision of liberal education with focus on humanities and social sciences as foundation of knowledge of good management has been considered as an essential part of the ethical vision of management education. The education in business ethics is an important part of this program, and theories and practices of ethical accounting, values-driven leadership, business ethics and virtues, normative leadership philosophy, business ethics and spirituality, as well as v vi Preface critical concepts of business ethics coming from critical management studies as well as from systems theory have emerged from this research environment. In Denmark and Scandinavia, this research and teaching in business ethics and philosophy of management have contributed to a higher level of ethical knowledge and ethical formulation competency among managers in private and public organizations. The focus on the importance of ethics is increasing in a society where the Protestant ethics is challenged by new societal problems, including concern for transformation to sustainability and development of more consciousness of ethical dilemmas of management at the national and global level. We are therefore happy in section I with the title “Business Ethics, Philosophy of Management, and Theory of Leadership” to present some of the contributions to the Copenhagen Conference in this volume of proceedings from the EBEN Research Conference, October 1–3, 2015. Indeed, we would like to express our gratitude to members of the Scandinavian Chapter of EBEN; EBEN; the Center for Corporate Social Responsibility at CBS; the Department of Management, Politics and Philosophy at CBS; and Roskilde University for the help with organizing this conference. Also in this book in section II with the title “Business and Human Rights”, we have in addition to three papers on business and human rights from the EBEN Research Conference five other papers on business and human rights. The papers on business and human rights are some of the contributions to the conference on The Power of Human Rights in Economics and Ethics in 2013. This conference was initiated by the German Philosophical Society’s Research Group on Philosophy, Ethics and Economics organized together with the Scandinavian Chapter of EBEN in Copenhagen at Copenhagen Business School and Roskilde University, November 29 and 30, 2013. These articles contribute to develop the field of business and human rights in relation to business ethics. These contributions fit very well with the general theme of the publication, which is business ethics and philosophy of management. The issue of business and human rights entered the global policy agenda in the 1990s, reflecting the dramatic worldwide expansion of the private sector at the time and a corresponding rise in transnational economic activity. These developments heightened social awareness of the impact of economic activity on human rights and also attracted the attention of the United Nations. The role of human rights in the world of commerce is officially being promoted since 2008 in a framework that consists of three normative imperatives – protect, respect, and remedy. The UN Human Rights Council has specified the role of these normative imperatives as “guiding principles”: The first principle is the duty of states to protect against human rights abuses by third parties, including business enterprises, through appropriate policies, regulation, and adjudication. The second is the corporate responsibility to respect human rights, which means that business enterprises should act with due diligence to avoid infringing the rights of others and to address negative impacts. The third is the need for greater access by victims to effective remedy, both judicial and nonjudicial. The (1) duty to protect lies at the very core of the international human rights regime, with states as the principal actors, whereas the principal bearers of (2) the responsibility to respect are c­ orporate Preface vii actors, this responsibility being the basic expectation society has of business in relation to human rights, and (3) access to remedy is important because even the most concerted efforts cannot prevent all abuse. From the perspective of business ethics and philosophy of management, we can mention theoretically interesting and probably also practically important shortcomings in the framework at its present stage. The following are to highlight some of the points that stand in need of philosophical discussion and elaboration: (1) The semantics of human rights is barely connected to business ethics discourse and to ethical discourses about the foundations of human rights in human dignity. (2) The key notion of CSR which, according to the framework, should absorb the normative responsibility to protect human rights lacks conceptual, and specifically business ethical, clarification. (3) There is a tendency in the framework to collapse the conception of human rights into a narrowly legal conception, omitting the poly-­ normative character of human rights. (4) Not enough attention is paid to problems of integrating recognition of human rights into the rationality constraints under which the strategic management of corporate commercial actors has to operate in order to adapt to the forces of competition in globally integrated capitalist markets. (5) Too little attention is paid to the need to construct plausible narratives that would explain the importance and justify to skeptics from within the entrepreneurial world view the possible burdens of making human rights the business of business. With this collection of articles from the 2015 EBEN Research Conference at Copenhagen Business School and the meeting of the German Philosophical Society’s Research Group on Philosophy, Ethics and Economics, organized together with the Scandinavian Chapter of EBEN in Copenhagen at Copenhagen Business School and Roskilde University in 2013, we hope to give a picture of the state of the art in the fields of business ethics and philosophy of management and business and human rights. Moreover, we also hope that this initiates future research in these fields. We wish the reader happy reading and great joy with all these exiting articles. Roskilde, Denmark August 2016 Jacob Dahl Rendtorff Contents Part I  Business Ethics, Philosophy of Management and Theory of Leadership 1 Business Ethics, Philosophy of Management, and Theory of Leadership.......................................................................  3 Jacob Dahl Rendtorff 2 Universal Ideology & Ethical Strategy.................................................. 17 Alan E. Singer 3 A Genealogy of the Gift........................................................................... 31 Germán Scalzo 4 To Be or Not to Be a Dot? Philosophy of Management and the Subjective Body.......................................................................... 47 Ghislain Deslandes 5 A Narrative Research Design into the Moral Courage of Professionals......................................................................................... 61 Marion Smit 6 Understanding Value Conflict to Engage SME Managers with Business Greening........................................................................... 73 Sarah Williams, Anja Schaefer, and Richard Blundel 7 My Brother’s Keeper: A New Phase in the Debate on Corporate Responsibility................................................................... 93 Johan Wempe and Willeke Slingerland 8 Norms for Networks: A Contractarian Approach to Corruption............................................................................................ 105 Willeke Slingerland ix x Contents 9 Compliance, Global Ethos and Corporate Wisdom: Values Strategies as an Increasingly Critical Competitive Advantage............................................................................ 121 Friedrich Glauner 10 Dispositional Attribution of Corporate Executives: Is Self-Interest a Conscious Decision or a State of Mind?................... 139 Julian M. Clarke 11 Honour as the (New) Foundational Virtue for Responsible Leadership in the Banking Sector: A Theoretico-Conceptual Analysis......................................................... 165 Johan Bouwer 12 Ethical Issues in E-Commerce: A Renewed Analysis Based on the Multiplicity of Customer Relationships..................................... 181 Magnus Frostenson, Nina Hasche, Sven Helin, and Frans Prenkert 13 Designing Whistleblowing Policy and Regulations for High-Context Cultures: A Case Study in Indonesia....................... 197 Bitra Suyatno, Anona Armstrong, and Keith Thomas Part II  Business and Human Rights 14 Business Responsibility for Human Rights Violations from a Theoretical Perspective: Towards a Moral Division of Labour................................................................................... 227 Aurora Voiculescu 15 Who Cares Whose Cars? A Philosophical Analysis of Business and Human Rights............................................................... 247 Ana-Maria Pascal 16 How to Accomplish Corporate Social Responsibility for Human Rights – A Case Study on the Nicaraguan Sugarcane Industry.................................................................................. 263 Anita Aufrecht 17 Connecting Corporate Human Rights Responsibilities and State Obligations Under the UN Guiding Principles: Communication and Human Rights Due Diligence.............................. 281 Karin Buhmann 18 Philanthropy and Human Rights in Business Ethics............................ 297 Øjvind Larsen Contents xi 19 The Economics of Nonsense Upon Stilts: Basic Human Rights and Economic Analysis............................................................................ 315 Jörg Althammer 20 Enlightened International Corporate Social Responsibility, Corporate Social Irresponsibility, and Human Rights......................... 333 Aloys Prinz 21 Power and Weaknesses of the Idea of Natural Rights.......................... 357 Giuseppe Franco Contributors Jörg Althammer  Ingolstadt School of Management, Catholic University Eichstaett-Ingolstadt, Ingolstadt, Germany Anona Armstrong  Law and Justice College, Victoria University, Melbourne, Australia Anita Aufrecht  German Graduate School of Management and Law (GGS), Heilbronn, Germany Richard Blundel  The Open University Business School, The Open University, Milton Keynes, UK Johan Bouwer  NHTV Breda International University of Applied Sciences, Breda, The Netherlands Karin Buhmann  Copenhagen Business School (CBS), Copenhagen, Denmark Julian M. Clarke  EBENI – European Business Ethics Network Ireland, Dublin, Ireland Ghislain Deslandes  ESCP Europe, Paris Campus, Paris, France Giuseppe Franco  Ingolstadt School of Management, Catholic University of Germany, Eichstätt, Germany Magnus Frostenson  Örebro University School of Business, Örebro University, Örebro, Sweden Friedrich Glauner  Weltethos Institut, University of Tübingen, Tübingen, Germany Nina Hasche  Örebro University School of Business, Örebro University, Örebro, Sweden Sven Helin  Örebro University School of Business, Örebro University, Örebro, Sweden xiii xiv Contributors Øjvind Larsen  Copenhagen Business School (CBS), Copenhagen, Denmark Ana-Maria Pascal  Principal Lecturer, Faculty of Business and Management, Regent’s University London, London, UK Frans Prenkert  Örebro University School of Business, Örebro University, Örebro, Sweden Aloys Prinz  Institute of Public Economics and Center for Economic Theory, University of Muenster, Muenster, Germany Jacob Dahl Rendtorff  Department of Social Sciences & Business, Roskilde University, Roskilde, Denmark Germán Scalzo  Business Ethics, Universidad Panamericana, Mexico City, Mexico Anja Schaefer  Department for Public Leadership and Social Enterprise, The Open University Business School, Milton Keynes, UK Alan E. Singer  Department of Management, Appalachian State University, Boone, NC, USA Willeke Slingerland  School of Governance, Law & Urban Development, Saxion University of Applied Sciences, Enschede, The Netherlands Marion Smit  Faculty of Business and Economics, Amsterdam University of Applied Sciences, Amsterdam, The Netherlands Bitra Suyatno  Law and Justice College, Victoria University, Melbourne, Australia Keith Thomas  School of Business, Victoria University, Melbourne, Australia Aurora Voiculescu  University of Westminster, London, UK Johan Wempe  VU University Amsterdam, Amsterdam, The Netherlands Sarah Williams  University of Bedfordshire Business School, Bedfordshire, UK Part I Business Ethics, Philosophy of Management and Theory of Leadership Chapter 1 Business Ethics, Philosophy of Management, and Theory of Leadership Jacob Dahl Rendtorff Abstract  This article presents the background of the discussions of the relation between business ethics and philosophy of management. The reason for the need for rethinking business ethics and philosophy of management is the many scandals and the crisis of business in contemporary society. The question is whether it is possible to overcome the oxymoron between ethics and business with the point of view that “good ethics is good business”. In order to answer this question we need to rethink bus...
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