IDEAS home Printed from https://ideas.repec.org/a/kap/jbuset/v159y2019i1d10.1007_s10551-017-3750-9.html
   My bibliography  Save this article

Moral Agency in Charities and Business Corporations: Exploring the Constraints of Law and Regulation

Author

Listed:
  • Eleanor Burt

    (University of St. Andrews)

  • Samuel Mansell

    (University of St. Andrews)

Abstract

For centuries in the UK and elsewhere, charities have been widely regarded as admirable and virtuous organisations. Business corporations, by contrast, have been characterised in the popular imagination as entities that lack a capacity for moral judgement. Drawing on the philosophical literature on the moral agency of organisations, we examine how the law shapes the ability of charities and business corporations headquartered in England to exercise moral agency. Paradoxically, we find that charities are legally constrained in exercising moral agency in ways in which business corporations are not. Implications for charities and business corporations are then explored.

Suggested Citation

  • Eleanor Burt & Samuel Mansell, 2019. "Moral Agency in Charities and Business Corporations: Exploring the Constraints of Law and Regulation," Journal of Business Ethics, Springer, vol. 159(1), pages 59-73, September.
  • Handle: RePEc:kap:jbuset:v:159:y:2019:i:1:d:10.1007_s10551-017-3750-9
    DOI: 10.1007/s10551-017-3750-9
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10551-017-3750-9
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: https://libkey.io/10.1007/s10551-017-3750-9?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. John Hasnas, 2012. "Reflections on Corporate Moral Responsibility and the Problem Solving Technique of Alexander the Great," Journal of Business Ethics, Springer, vol. 107(2), pages 183-195, May.
    2. Yonca Ertimur & Fabrizio Ferri & Volkan Muslu, 2011. "Shareholder Activism and CEO Pay," The Review of Financial Studies, Society for Financial Studies, vol. 24(2), pages 535-592.
    3. Steve Lydenberg, 2014. "Reason, Rationality, and Fiduciary Duty," Journal of Business Ethics, Springer, vol. 119(3), pages 365-380, February.
    4. Velasquez, Manuel, 2003. "Debunking Corporate Moral Responsibility," Business Ethics Quarterly, Cambridge University Press, vol. 13(4), pages 531-562, October.
    5. Lorenzo Sacconi, 2011. "A Rawlsian View of CSR and the Game Theory of its Implementation (Part I): the Multi-stakeholder Model of Corporate Governance," International Economic Association Series, in: Lorenzo Sacconi & Margaret Blair & R. Edward Freeman & Alessandro Vercelli (ed.), Corporate Social Responsibility and Corporate Governance, chapter 7, pages 157-193, Palgrave Macmillan.
    6. Samuel Mansell, 2013. "Shareholder Theory and Kant’s ‘Duty of Beneficence’," Journal of Business Ethics, Springer, vol. 117(3), pages 583-599, October.
    7. Doug White, 2010. "The Nonprofit Challenge," Palgrave Macmillan Books, Palgrave Macmillan, number 978-0-230-11400-5.
    8. Paddy Ireland, 2010. "Limited liability, shareholder rights and the problem of corporate irresponsibility," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 34(5), pages 837-856.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kristina Auxtova & Mary Brennan & Stephen Dunne, 2021. "To Be or Not to Be Governed Like That? Harmful and/or Offensive Advertising Complaints in the United Kingdom’s (Self-) Regulatory Context," Journal of Business Ethics, Springer, vol. 172(3), pages 425-446, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Tobey Scharding, 2019. "Individual Actions and Corporate Moral Responsibility: A (Reconstituted) Kantian Approach," Journal of Business Ethics, Springer, vol. 154(4), pages 929-942, February.
    2. Matthias P. Hühn, 2018. "CSR - the Cuckoo’s Egg in the Business Ethics Nest," Humanistic Management Journal, Springer, vol. 3(2), pages 279-298, December.
    3. Vikram R. Bhargava, 2020. "Firm Responses to Mass Outrage: Technology, Blame, and Employment," Journal of Business Ethics, Springer, vol. 163(3), pages 379-400, May.
    4. Bruce Barry & Mara Olekalns & Laura Rees, 2019. "An Ethical Analysis of Emotional Labor," Journal of Business Ethics, Springer, vol. 160(1), pages 17-34, November.
    5. Heugens, P.P.M.A.R. & Kaptein, S.P. & van Oosterhout, J., 2007. "Contracts to Communities: A Processual Model of Organizational Virtue," ERIM Report Series Research in Management ERS-2007-023-ORG, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    6. Ricardo Correa & Ugur Lel, 2013. "Say on pay laws, executive compensation, CEO pay slice, and firm value around the world," International Finance Discussion Papers 1084, Board of Governors of the Federal Reserve System (U.S.).
    7. Blanche Segrestin & Armand Hatchuel & Kevin Levillain, 2021. "When the Law Distinguishes Between the Enterprise and the Corporation: The Case of the New French Law on Corporate Purpose," Journal of Business Ethics, Springer, vol. 171(1), pages 1-13, June.
    8. Dasgupta, Amil & Fos, Vyacheslav & Sautner, Zacharias, 2021. "Institutional investors and corporate governance," LSE Research Online Documents on Economics 112114, London School of Economics and Political Science, LSE Library.
    9. Stephanie Collins, 2019. "Collective Responsibility Gaps," Journal of Business Ethics, Springer, vol. 154(4), pages 943-954, February.
    10. Oehler, Andreas & Schmitz, Jonas Tobias, 2021. "Does intensified communication of hedge funds with letters affect abnormal returns?," International Review of Economics & Finance, Elsevier, vol. 76(C), pages 127-142.
    11. Ng, Lilian & Sibilkov, Valeriy & Wang, Qinghai & Zaiats, Nataliya, 2011. "Does shareholder approval requirement of equity compensation plans matter?," Journal of Corporate Finance, Elsevier, vol. 17(5), pages 1510-1530.
    12. Tim Mulgan, 2019. "Corporate Agency and Possible Futures," Journal of Business Ethics, Springer, vol. 154(4), pages 901-916, February.
    13. Abul Kalam Azad, 2014. "How to Spot Business Ethics?," International Journal of Management Sciences, Research Academy of Social Sciences, vol. 3(8), pages 544-547.
    14. Gordon Menzies & Donald Hay & Thomas Simpson & David Vines, 2019. "Restoring Trust in Finance: From Principal–Agent to Principled Agent," The Economic Record, The Economic Society of Australia, vol. 95(311), pages 497-509, December.
    15. Brian Berkey, 2021. "Sweatshops, Structural Injustice, and the Wrong of Exploitation: Why Multinational Corporations Have Positive Duties to the Global Poor," Journal of Business Ethics, Springer, vol. 169(1), pages 43-56, February.
    16. Brochet, Francois & Srinivasan, Suraj, 2014. "Accountability of independent directors: Evidence from firms subject to securities litigation," Journal of Financial Economics, Elsevier, vol. 111(2), pages 430-449.
    17. Dorfleitner, Gregor & Kreuzer, Christian & Sparrer, Christian, 2022. "To sin in secret is no sin at all: On the linkage of policy, society, culture, and firm characteristics with corporate scandals," Journal of Economic Behavior & Organization, Elsevier, vol. 202(C), pages 762-784.
    18. Abhijith G. Acharya & David Gras & Ryan Krause, 2022. "Socially Oriented Shareholder Activism Targets: Explaining Activists’ Corporate Target Selection Using Corporate Opportunity Structures," Journal of Business Ethics, Springer, vol. 178(2), pages 307-323, June.
    19. Blanche Segrestin & Andrew Johnston & Armand Hatchuel, 2019. "The Separation Of Directors And Managers: A Historical Examination Of The Status Of Managers," Post-Print hal-01957329, HAL.
    20. Steven S. Crawford & Karen K. Nelson & Brian R. Rountree, 2021. "Mind the gap: CEO–employee pay ratios and shareholder say‐on‐pay votes," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 48(1-2), pages 308-337, January.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:jbuset:v:159:y:2019:i:1:d:10.1007_s10551-017-3750-9. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.