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Positive Economics and the Normativistic Fallacy: Bridging the Two Sides of CSR

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  • Schreck, Philipp
  • Aaken, Dominik van
  • Donaldson, Thomas

Abstract

In response to criticism of empirical or “positive” approaches to corporate social responsibility (CSR), we defend the importance of these approaches for any CSR theory that seeks to have practical impact. Although we acknowledge limitations to positive approaches, we unpack the neglected but crucial relationships between positive knowledge on the one hand and normative knowledge on the other in the implementation of CSR principles. Using the structure of a practical syllogism, we construct a model that displays the key role of empirical knowledge in fulfilling a firm’s responsibility to society, paying special attention to the implications of the “ought implies can” dictum. We also defend the importance of one particular class of empirical claims; namely, claims from the field of economics. Even positive economic theory, which is often criticized for endorsing profits rather than values, can cooperate in intriguing ways with non-economic concepts in the implementation of CSR goals.

Suggested Citation

  • Schreck, Philipp & Aaken, Dominik van & Donaldson, Thomas, 2013. "Positive Economics and the Normativistic Fallacy: Bridging the Two Sides of CSR," Business Ethics Quarterly, Cambridge University Press, vol. 23(2), pages 297-329, April.
  • Handle: RePEc:cup:buetqu:v:23:y:2013:i:02:p:297-329_00
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    Cited by:

    1. Wolfgang Breuer & Jannis Bischof & Christian Hofmann & Jochen Hundsdoerfer & Hans-Ulrich Küpper & Marko Sarstedt & Philipp Schreck & Tim Weitzel & Peter Witt, 2023. "Recent developments in Business Economics," Journal of Business Economics, Springer, vol. 93(6), pages 989-1013, August.
    2. Andreas Ostermaier & Dominik Aaken, 2020. "Freedom trumps profit: a liberal approach to business ethics," Journal of Business Economics, Springer, vol. 90(5), pages 947-962, June.
    3. Dominik Aaken & Florian Buchner, 2020. "Religion and CSR: a systematic literature review," Journal of Business Economics, Springer, vol. 90(5), pages 917-945, June.
    4. Leonardo H. Talero-Sarmiento & Orlando E. Contreras-Pacheco & Julio C. Camacho-Pinto, 2019. "The dual face of corporate social responsibility in social businesses: a closer look at the Colombian reality," Estudios Gerenciales, Universidad Icesi, vol. 35(151), pages 109-121, June.
    5. Felix Carl Schultz & Ingo Pies, 2024. "The circular economy growth machine: A critical perspective on “post‐growth” and “pro‐growth” circularity approaches," Journal of Industrial Ecology, Yale University, vol. 28(1), pages 17-24, February.
    6. Thomas Donaldson, 2023. "Value creation and CSR," Journal of Business Economics, Springer, vol. 93(6), pages 1255-1275, August.
    7. Philipp Schreck & Dominik Aaken & Karl Homann, 2020. "“There’s Life in the Old Dog Yet”: The Homo economicus model and its value for behavioral ethics," Journal of Business Economics, Springer, vol. 90(3), pages 401-425, April.
    8. O'Higgins, Eleanor & Thevissen, Thibault, 2017. "Revisiting the corporate social and financial performance link: a contingency approach," LSE Research Online Documents on Economics 84657, London School of Economics and Political Science, LSE Library.

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