Stakeholder Theory, Fact/Value Dichotomy, and the Normative Core: How Wall Street Stops the Ethics Conversation
A review of the stakeholder literature reveals that the concept of “normative core” can be applied in three main ways: philosophical justification of stakeholder theory, theoretical governing principles of a firm, and managerial beliefs/values influencing the underlying narrative of business. When considering the case of Wall Street, we argue that the managerial application of normative core reveals the imbedded nature of the fact/value dichotomy. Problems arise when the work of the fact/value dichotomy contributes to a closed-core institution. We make the distinction between open- and closed-core institutions to show how in the case of the closed-core, ethical decision-making is viewed by the institution as a separate domain from the core business of the institution. The resulting blind spot stifles meaningful exchanges with stakeholders attempting to address the need for reform. We suggest in conclusion that ethical considerations are less about casting a value judgment and more about creating a process for meaningful conversation throughout an institution and its stakeholders. Copyright Springer Science+Business Media B.V. 2012
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Donaldson, Thomas & Dunfee, Thomas W., 2002. "Ties that bind in business ethics: Social contracts and why they matter," Journal of Banking & Finance, Elsevier, vol. 26(9), pages 1853-1865, September.
- R. Edward Freeman & Jared Harris, 2009. "Creating Ties That Bind," Journal of Business Ethics, Springer, vol. 88(4), pages 685-692, October.
When requesting a correction, please mention this item's handle: RePEc:kap:jbuset:v:109:y:2012:i:1:p:109-116. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla)or (Christopher F. Baum)
If references are entirely missing, you can add them using this form.