What is a 'Fair' Price? Ethics as Sensemaking

Reinecke, J. and Ansari, S. 2015. Be fair or care? Fairtrade and the standardization of ethics or: be fair or care? Organization Science, Forthcoming

23 Pages Posted: 29 Apr 2015

See all articles by Juliane Reinecke

Juliane Reinecke

University of Warwick - Warwick Business School

Shaz Ansari

University of Cambridge - Judge Business School; Erasmus University, Rotterdam (EUR)

Date Written: April 28, 2015

Abstract

Whereas the deliberative democracy approach to ethics seeks to bridge universalist reason and contextual judgment to explain the emergence of intersubjective agreements, it remains unclear how these two are reconciled in practice. We argue that a sensemaking approach is useful for examining how ethical truces emerge in equivocal situations. To understand how actors navigate through ethical complexity, we conducted an ethnographic inquiry into the multi-stakeholder practices of setting Fairtrade Minimum Prices. We offer three contributions. First, we develop a process model of ethics as sensemaking that explains how actors come to collectively agree on what is ethical in complex situations, even if no complete consensus arises. Second, our findings suggest that moral intuition and affect also motivate ethical judgment alongside moral reasoning. Third, an ethical sensemaking perspective explains some of the pitfalls actors confront in coping with ethical complexities in practice and how they attend to the challenges arising from stark inequalities in extreme contexts.

Keywords: sensemaking; fair trade; Habermas; communicative rationality; discourse ethics; political corporate socialated

Suggested Citation

Reinecke, Juliane and Ansari, Shahzad (S, What is a 'Fair' Price? Ethics as Sensemaking (April 28, 2015). Reinecke, J. and Ansari, S. 2015. Be fair or care? Fairtrade and the standardization of ethics or: be fair or care? Organization Science, Forthcoming, Available at SSRN: https://ssrn.com/abstract=2600030

Juliane Reinecke

University of Warwick - Warwick Business School ( email )

Gibbet Hill Rd.
Coventry, West Midlands CV4 8UW
United Kingdom

Shahzad (S Ansari (Contact Author)

University of Cambridge - Judge Business School ( email )

Trumpington Street
Cambridge, CB2 1AG
United Kingdom

Erasmus University, Rotterdam (EUR) ( email )

P.O. Box 1738
Room T08-21
3000 DR Rotterdam, 3000 DR
Netherlands

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