Competitive markets, corporate firms, and new governance - An ordonomic conceptualization

Ingo Pies, Markus Beckmann and Stefan Hielscher

No 2009-13, Discussion Papers from Martin Luther University of Halle-Wittenberg, Chair of Economic Ethics

Abstract: The purpose of this article is to develop an ordonomic conceptualization of corporate citizenship and new governance that (a) provides a framework for positively explaining the political participation of companies in new governance processes and (b) does not weaken but instead strengthens the functional role of corporations as economic actors in the market system of value creation. To this end, we develop our ordonomic approach in a critical discussion of Milton Friedman's stance on the social responsibility of business in three steps. (1) The ordonomic perspective on the economics ethics of competitive markets argues that the social responsibility of business does not lie in maximizing profits but in addressing societal needs through the mutually advantageous creation of value. (2) The ordonomic approach to the business ethics of corporate actors claims that corporate firms can use moral commitments as a factor of production. (3) The ordonomic perspective on the process ethics of new governance holds that companies can act not only as economic actors but also participate as political and moral actors by taking ordo-responsibility in processes of new governance. This role of corporate citizens in the new governance does not weaken but, instead, strengthens the role of business firms as economic agents for value creation.

Keywords: New Governance; Corporate Citizenship; Value Creation; Economic Ethics; Business Ethics; Process Ethics; Ordonomics; Stakeholder Theory; Sustainability; Aristotle; Milton Friedman; Corporate Social Responsibility; New Governance; Corporate Citizenship; Wertschöpfung; Wirtschaftsethik; Unternehmensethik; Prozessethik; Ordonomik; Stakeholder-Theorie; Nachhaltigkeit; Aristoteles; Milton Friedman; Corporate Social Responsibility (search for similar items in EconPapers)
JEL-codes: A12 D02 D63 M14 (search for similar items in EconPapers)
Date: 2009
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:mlucee:200913

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