TY - CHAP

T1 - Competitive Markets, Corporate Firms, and New Governance

T2 - An Ordonomic Conceptualization

AU - Pies, Ingo

AU - Beckmann, Markus

AU - Hielscher, Stefan

N1 - peer reviewed

PY - 2011/8

Y1 - 2011/8

N2 - The purpose of this chapter 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.

AB - The purpose of this chapter 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.

KW - Sustainability sciences, Management & Economics

KW - Marktwirtschaft

KW - new governance

KW - Ordonomik

KW - Ordonomic

KW - New Governance

KW - Competitive Market

KW - Corporate Citizenship

KW - Value creation

KW - Economic Ethics

KW - Business ethics

KW - Process ethics

KW - Ordonomics

KW - Stakeholder Theory

KW - Sustainability

KW - Aristotle

KW - Milton Freeman

KW - corporate social responsibility

U2 - 10.1007/978-94-007-1661-2_10

DO - 10.1007/978-94-007-1661-2_10

M3 - Contributions to collected editions/anthologies

SN - 978-94-007-1660-5

T3 - Ethical Economics : Studies in Economic Ethics and Philosophy

SP - 171

EP - 188

BT - Corporate Citizenship and New Governance

A2 - Pies, Ingo

A2 - Koslowski , Peter

PB - Springer

CY - Dordrecht

ER -