Business Ethic Paper!!!

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Business Ethics

Corporate Citizenship

Corporate Citizenship

Both corporations and business ethicists frequently talk about businesses needing to be “good corporate citizens”.

Corporate Citizenship

Both corporations and business ethicists frequently talk about businesses needing to be “good corporate citizens”.

But what does this actually mean?

Corporate Citizenship

Jeurissen tries to answer this question by examining key features of what it means to be a citizen, and then finding analogous features that corporations can and should develop.

Corporate Citizenship

Jeurissen tries to answer this question by examining key features of what it means to be a citizen, and then finding analogous features that corporations can and should develop.

Main Claim

“This article suggests that approaching corporations as citizens, and acting as if they were citizens, would have far reaching consequences for their behavior” (87).

Main Claim

In other words, Jeurissen wants to take corporate citizenship from being a metaphor used by corporations to express that they too are members of society with responsibilities,

Main Claim

In other words, Jeurissen wants to take corporate citizenship from being a metaphor used by corporations to express that they too are members of society with responsibilities,

to being a more literal set of guidelines for how corporations should behave.

Main Claim

In other words, Jeurissen wants to take corporate citizenship from being a metaphor used by corporations to express that they too are members of society with responsibilities,

to being a more literal set of guidelines for how corporations should behave.

They should behave as though they actually are citizens.

Citizens

Citizenship involves certain duties and responsibilities:

Citizens

Citizenship involves certain duties and responsibilities:

The social contract

Citizens

The social contract

Citizens agree to follow their society’s rules for the sake of the common good and their own good. These rules grant them certain rights, and also restrict their behavior in certain ways.

Citizens

Citizenship involves certain duties and responsibilities:

The social contract

Collective responsibility

Citizens

Collective responsibility

Citizens have to perform certain duties to contribute to the common good (for example, voting and paying taxes).

Citizens

Citizenship involves certain duties and responsibilities:

The social contract

Collective responsibility

Active responsibility

Citizens

Active responsibility

Citizens should take steps to be aware of what is happening in their society and protect it from threats.

Citizens

Citizenship involves certain duties and responsibilities:

The social contract

Collective responsibility

Active responsibility

Juridical state

Citizens

Juridical state

Citizens demand just laws, and follow these laws voluntarily.

Corporate Citizens

Corporations have analogous duties and responsibilities.

Corporate Citizens

CITIZENS CORPORATE CITIZENS
Social Contract Social Contract of Business

Corporate Citizens

Social Contract of Business

Businesses receive certain privileges from a society in return for the benefits they provide. However, they only get these privileges as long as the benefits they provide outweigh the harms they produce. They thus have a responsibility to make sure this is the case.

Corporate Citizens

CITIZENS CORPORATE CITIZENS
Collective responsibility Institutional Responsibility

Corporate Citizens

Institutional Responsibility

Corporations have to do their part to work for the common good. This involves working in partnership with the government and other citizens in order to jointly solve social problems.

Corporate Citizens

CITIZENS CORPORATE CITIZENS
Active Responsibility Precautionary Principle

Corporate Citizens

Precautionary Principle

Corporations have a responsibility to be aware of when their behavior poses a risk to other citizens, and take precautionary actions to minimize these risks. For example, they have an obligation to minimize their ecological footprint in order to protect future generations.

Corporate Citizens

CITIZENS CORPORATE CITIZENS
Juridical State Just International Institutions

Corporate Citizens

Just International Institutions

Corporations should demand just international laws and institutions, and follow them voluntarily.

Shared Responsibility

Jeurissen emphasizes that corporations are not taking on these responsibilities alone, but that it is up to the rest of society to create the conditions for corporations to act responsibly.

Shared Responsibility

A corporation’s ability to fulfill the duties of corporate citizen depends on external factors such as:

Shared Responsibility

A corporation’s ability to fulfill the duties of corporate citizen depends on external factors such as:

market conditions

what businesses need to do to stay competitive

Shared Responsibility

A corporation’s ability to fulfill the duties of corporate citizen depends on external factors such as:

market conditions

political conditions

what laws are in place

Shared Responsibility

A corporation’s ability to fulfill the duties of corporate citizen depends on external factors such as:

market conditions

political conditions

stakeholder demands

what stakeholders have the power to influence businesses and what they want

Shared Responsibility

A corporation’s ability to fulfill the duties of corporate citizen depends on external factors such as:

market conditions

political conditions

stakeholder demands

societal values

what influences reputation and consumer preferences

Shared Responsibility

Jeurissen’s conclusion, then, is that if we want responsible businesses, we need to create a responsible society.

Shared Responsibility

Jeurissen’s conclusion, then, is that if we want responsible businesses, we need to create a responsible society.

“It is no exaggeration to say that half of the social responsibility of corporations is in fact located outside of the corporation, in the surrounding society that poses the institutional conditions within with companies operate. Hence, there is no corporate social responsibility without a responsible society.” (94)

Shared Responsibility

In other words, we all share part of the responsibility.

Discussion Questions

1. Do you think it is fair to hold everyone responsible for corporate responsibility? Who do you think is best able to influence the external conditions that Jeurissen mentions?

2. If you found out a corporation was not behaving responsibly, what would you do? Would you buy their products? Would you work there? Would you take any other actions?

3. Do you think it matters whether corporations are being responsible in order to raise their reputations or out of a genuine desire to be? In order words, to what extent do you think the motives of a corporation to behave ethically matter?