Competitive Markets, Corporate Firms, and New Governance - an Ordonomic Conceptualization

22 Pages Posted: 10 Dec 2009  

Ingo Pies

Martin-Luther-University Halle-Wittenberg

Markus Beckmann

Leuphana University Lueneburg

Dr. Stefan Hielscher

Martin-Luther-University Halle-Wittenberg

Date Written: December 8, 2009

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, CSR

JEL Classification: A12, D02, D63, M14

Suggested Citation

Pies, Ingo and Beckmann, Markus and Hielscher, Dr. Stefan, Competitive Markets, Corporate Firms, and New Governance - an Ordonomic Conceptualization (December 8, 2009). Available at SSRN: https://ssrn.com/abstract=1520698 or http://dx.doi.org/10.2139/ssrn.1520698

Ingo Pies (Contact Author)

Martin-Luther-University Halle-Wittenberg ( email )

Grosse Steinstrasse 73
Halle/Saale, DE Saxony-Anhalt 06108
Germany
+49 0 345 55 23420 (Phone)

HOME PAGE: http://ethik.wiwi.uni-halle.de/2166_199920/2166_199912/

Markus Beckmann

Leuphana University Lueneburg ( email )

Scharnhorststrasse 1
Lueneburg, 21314
Germany
+49(0)4131-677 2167 (Phone)
+49(0)4131-677 2186 (Fax)

HOME PAGE: http://www.leuphana.de/csm

Stefan Hielscher

Martin-Luther-University Halle-Wittenberg ( email )

Grosse Steinstrasse 73
Halle/Saale, DE Saxony-Anhalt 06108
Germany
+49 (0) 345 23387 (Phone)

HOME PAGE: http://ethik.wiwi.uni-halle.de/2166_199920/hielscher/

Paper statistics

Downloads
107
Rank
208,499
Abstract Views
846