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

Author

Listed:
  • Pies, Ingo
  • Beckmann, Markus
  • Hielscher, Stefan

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.

Suggested Citation

  • Pies, Ingo & Beckmann, Markus & Hielscher, Stefan, 2009. "Competitive markets, corporate firms, and new governance - An ordonomic conceptualization," Discussion Papers 2009-13, Martin Luther University of Halle-Wittenberg, Chair of Economic Ethics.
    • Handle: RePEc:zbw:mlucee:200913
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    References listed on IDEAS

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    Full references (including those not matched with items on IDEAS)

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    More about this item

    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;
    All these keywords.

    JEL classification:

    • A12 - General Economics and Teaching - - General Economics - - - Relation of Economics to Other Disciplines
    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility

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