Business Democratic Value at Stake: A Business Ethics Perspective on Embedded Social and Political Responsibility

The present works aims to shed light on the role of business ethics and the social responsibility of business in fueling or combatting populism, as well as in supporting or undermining the quality of democracy. In this vein, it addresses the crisis of representative Western liberal democracy by considering populism the political epiphenomenon of economic inequality and neoliberal cultural individualism. By proposing a multidisciplinary approach – bridging political theory, international economic policy, and business studies – it discusses the classic idea of embeddedness of business in society in order to outline the main issues connected to the crisis of “embedded liberalism” and its political expression, supporting the idea that, while traditional political intermediate bodies and institutions have lost power, business has gained a new social role in representing a mediating institution. Focusing on political CSR, it highlights its limits when facing the issue of the quality of democracy that remains largely unexplored as a relevant factor to be considered when looking at motives for adopting social responsibility practices. Possible paths of research, moving from business ethics theoretical possibilities in understanding the link between business behavior and political values, are therefore proposed. Ultimately the paper argues for democracy to be considered among the intangible values informing business responsible behavior from both a normative and positive point of view.