Darryl Reed

Stakeholder Management Theory: A Critical Theory Perspective

This article elaborates a normative Stakeholder Management Theory (SHMT) from a critical theory perspective. The paper argues that the normative theory elaborated by critical theorists such as Habermas exhibits important advantages over its rivals and that these advantages provide the basis for a theoretically more adequate version of SHMT. In the first section of the paper an account is given of normative theory from a critical theory perspective and its advantages over rival traditions. A key characteristic of the critical theory approach is expressed as a distinction between three different normative realms, viz., legitimacy, morality, and ethics. In the second section, the outlines of a theory of stakeholder management are provided. First, three basic tasks of a theoretically adequate treatment of the normative analysis of stakeholder management are identified. This is followed by a discussion of how a critical theory approach to SHMT is able to fulfill these three tasks.

Employing Normative Stakeholder Theory in Developing Countries: A Critical Theory Perspective

Although the use of stakeholder analysis to investigate corporate responsibilities has burgeoned over the past two decades, there has been relatively little workon howcorporate responsibilities may change for firms with operations in developing countries. This article argues, from a critical theory perspective, that two sets of factors tend to come together to increase the responsibilities of corporations active in developing countries to a full range of stakeholder groups: (a) the different (economic, political, and sociocultural) circumstances under which corporations have to operate in developing countries and (b) several key normative principles, which typically do not come into play in the context of developed countries.

Resource Extraction Industries in Developing Countries

Over the last one hundred and fifty years, the extraction and processing of non-renewable resources has provided the basis for the three industrial revolutions that have led to the modern economies of the developed world. In the process, the nature of resource extraction firms has also changed dramatically, from small-scale operations exploiting easily accessible deposits to large, vertically integrated, capital intensive transnational corporations characterized by oligopolistic competition. In the last ten to fifteen years, coinciding with processes of economic globalization, another major change has been occurring as resource extraction industries have been shifting their operations from developed to developing countries. This shift has greatly impacted the populations of these countries and raises a variety of ethical issues. This article investigates the nature of these changes and the ethical issues that arise, focusing in particular on the development impact of the activities of these industries and the potential adequacy of different policy approaches to regulating them.

Three Realms of Corporate Responsibility: Distinguishing Legitmacy, Morality and Ethics

In the mid-1960s and 1970s the field of business ethics saw a basic shift in emphasis from personal responsibility to corporate responsibility. While the notion of corporate responsibility has come to be a dominant concept in the field of business ethics since that time, it is a contested concept that admits of a range of conceptions. A concern underlying this paper is that many of these conceptions are less adequate than they might be. This paper has two overlapping goals. First, it seeks to elaborate a more adequate conception of corporate responsibility by drawing upon critical theory to distinguish three different normative realms (viz., legitimacy, morality and ethics). Second, the paper attempts to indicate from a critical theory perspective the nature of corporate responsibilities in each of these realms. The paper begins with a short introduction to German critical theory and an explanation of the different normative realms. The following three sections elaborate in turn the responsibilities of corporations in each on the three normative realms. Finally, the conclusion attempts to indicate some of the advantages of a critical theory conception of corporate responsibility.

Universities and the Promotion of Corporate Responsibility: Reinterpreting the Liberal Arts Tradition

The issue of corporate responsibility has long been discussed in relationship to universities, but generally only in an ad hoc fashion. While the role of universities in teaching business ethics is one theme that has received significant and rather constant attention, other issues tend to be raised only sporadically. Moreover, when issues of corporate responsibility are raised, it is often done on the presumption of some understanding of a liberal arts mandate of the university, a position that has come under much attack in recent years. The purpose of this article is to investigate more systematically the nature of the obligations that the university has to promote more responsible corporate behaviour. It does so on the basis of a reinterpretation of the liberal arts tradition from a critical theory perspective. This entails: (1) an initial conceptualization of the roles and functions of the university; (2) an examination of these functions at two formative periods of the liberal arts tradition, the medieval university and the rise of the modern university in Germany in the early 19th century; (3) an investigation of ruptures in the understanding and practices of the liberal arts tradition, resulting in large part from the rise of the bureaucratic state and the industrial capitalist economy; (4) a reinterpretation of the liberal arts tradition from a critical theory perspective; and (5) a systematic elaboration of the obligations of the university vis-à-vis corporations based upon the universitys key functions of teaching, research, formation and professional development.

Ethics, community development and not‐for‐profit business

Many non‐metropolitan areas in developed countries suffer from problems of underdevelopment. Because the activities of traditional business firms and government have not met local needs, many communities have created “community business corporations” which are explicitly dedicated to addressing the problems of community economic development. This article examines the nature of such alternative corporations and some of the ethical issues and challenges that they raise. It focuses especially on one “not‐for‐profit corporation” in Nova Scotia, New Dawn Enterprises, and the priest/businessman who has been the driving force behind it.

Corporate Social Responsibility and Development in India1

This paper is a normative analysis of corporate governance in India. The aim is to investigate the extent to which corporations in India, in their various dealings, have conformed to defensible normative standards and to identify the factors which have influenced their rate of (non)-conformity. The paper makes an attempt to understand how conformity to defensible standards can be better promoted. The normative standards to which corporations are subject can be categorized into three broad areas, namely, political, social and economic responsibilities. The focus here is on the least controversial area, that is, the economic responsi bilities of corporations. The author concludes with some reflections on the task of promoting more respon sible corporate governance.

Critical theory and the Catholic Church′s ambivalence about capitalism

Catholic social thought presents itself as a reflection by the Church on socio‐economic issues. The Church in its teachings has always had, and continues to have, an ambivalent attitude towards the capitalist economic system. This ambivalence has not always expressed itself in the most effective and appropriate ways. Attempts to argue that social analysis from a critical theory perspective is both able to capture effectively the ambivalence which Catholic social thought feels towards capitalism, and to put into a broader theoretical context many of the critiques levelled against the Church′s teachings. This in turn allows for a more cogent presentation of the Church′s normative project.