Business Ethic Paper!!!
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?