IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v16y2024i3p1232-d1331164.html
   My bibliography  Save this article

Beyond the Business Case for Responsible Artificial Intelligence: Strategic CSR in Light of Digital Washing and the Moral Human Argument

Author

Listed:
  • Rosa Fioravante

    (DESP, Department of Economy, Society and Politics, University of Urbino Carlo Bo, 61029 Urbino, Italy
    CLSBE—Catholic Lisbon School of Business and Economics, Palma de Cima, 1649-023 Lisbon, Portugal)

Abstract

This paper, normative in nature and scope, addresses the perks and limits of the strategic CSR approach when confronted with current debates on the ethics of artificial intelligence, responsible artificial intelligence, and sustainable technology in business organizations. The paper summarizes the classic arguments underpinning the “business case” for the social responsibility of businesses and the main moral arguments for responsible and sustainable behavior in light of recent technological ethical challenges. Both streams are confronted with organizational ethical dilemmas arising in designing and deploying artificial intelligence, yielding tensions between social and economic goals. While recognizing the effectiveness of the business argument for responsible behavior in artificial intelligence, the paper addresses some of its main limits, particularly in light of the “digital washing” phenomenon. Exemplary cases of digital washing and corporate inconsistencies here discussed are taken from the literature on the topic and re-assessed in light of the proposed normative approach. Hence, the paper proposes to overcome some limits of the business case for CSR applied to AI, which mainly focuses on compliance and reputational risks and seeks returns in digital washing, by highlighting the normative arguments supporting a moral case for strategic CSR in AI. This work contributes to the literature on business ethics and strategic CSR at its intertwining with the ethics of AI by proposing a normative point of view on how to deploy the moral case in organizations when dealing with AI-related ethical dilemmas. It does so by critically reviewing the state-of-the-art studies on the debate, which, so far, contain different streams of research, and adding to such a body of literature what is here identified and labeled as the “human argument”.

Suggested Citation

  • Rosa Fioravante, 2024. "Beyond the Business Case for Responsible Artificial Intelligence: Strategic CSR in Light of Digital Washing and the Moral Human Argument," Sustainability, MDPI, vol. 16(3), pages 1-16, February.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:3:p:1232-:d:1331164
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/16/3/1232/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/16/3/1232/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Pascual Berrone & Andrea Fosfuri & Liliana Gelabert, 2017. "Does Greenwashing Pay Off? Understanding the Relationship Between Environmental Actions and Environmental Legitimacy," Journal of Business Ethics, Springer, vol. 144(2), pages 363-379, August.
    2. Rodrigo Lozano, 2015. "A Holistic Perspective on Corporate Sustainability Drivers," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 22(1), pages 32-44, January.
    3. Mark Anthony Camilleri, 2017. "Corporate Sustainability, Social Responsibility and Environmental Management," Springer Books, Springer, number 978-3-319-46849-5, April.
    4. Ioannis Ioannou & George Kassinis & Giorgos Papagiannakis, 2023. "The Impact of Perceived Greenwashing on Customer Satisfaction and the Contingent Role of Capability Reputation," Journal of Business Ethics, Springer, vol. 185(2), pages 333-347, June.
    5. Marta Pizzetti & Lucia Gatti & Peter Seele, 2021. "Firms Talk, Suppliers Walk: Analyzing the Locus of Greenwashing in the Blame Game and Introducing ‘Vicarious Greenwashing’," Journal of Business Ethics, Springer, vol. 170(1), pages 21-38, April.
    6. Sergiy D. Dmytriyev & R. Edward Freeman & Jacob Hörisch, 2021. "The Relationship between Stakeholder Theory and Corporate Social Responsibility: Differences, Similarities, and Implications for Social Issues in Management," Journal of Management Studies, Wiley Blackwell, vol. 58(6), pages 1441-1470, September.
    7. Lloyd Sandelands, 2009. "The Business of Business is the Human Person: Lessons from the Catholic Social Tradition," Journal of Business Ethics, Springer, vol. 85(1), pages 93-101, March.
    8. Kent Walker & Fang Wan, 2012. "The Harm of Symbolic Actions and Green-Washing: Corporate Actions and Communications on Environmental Performance and Their Financial Implications," Journal of Business Ethics, Springer, vol. 109(2), pages 227-242, August.
    9. Leopoldo Gutierrez & Ivan Montiel & Jordi A. Surroca & Josep A. Tribo, 2022. "Rainbow Wash or Rainbow Revolution? Dynamic Stakeholder Engagement for SDG-Driven Responsible Innovation," Journal of Business Ethics, Springer, vol. 180(4), pages 1113-1136, November.
    10. Tobias Hahn & Frank Figge & Jonatan Pinkse & Lutz Preuss, 2018. "A Paradox Perspective on Corporate Sustainability: Descriptive, Instrumental, and Normative Aspects," Journal of Business Ethics, Springer, vol. 148(2), pages 235-248, March.
    11. Kirsten Martin, 2019. "Ethical Implications and Accountability of Algorithms," Journal of Business Ethics, Springer, vol. 160(4), pages 835-850, December.
    12. Buhmann, Alexander & Fieseler, Christian, 2023. "Deep Learning Meets Deep Democracy: Deliberative Governance and Responsible Innovation in Artificial Intelligence," Business Ethics Quarterly, Cambridge University Press, vol. 33(1), pages 146-179, January.
    13. John Bruhn, 2009. "The Functionality of Gray Area Ethics in Organizations," Journal of Business Ethics, Springer, vol. 89(2), pages 205-214, October.
    14. Peter Seele & Mario D. Schultz, 2022. "From Greenwashing to Machinewashing: A Model and Future Directions Derived from Reasoning by Analogy," Journal of Business Ethics, Springer, vol. 178(4), pages 1063-1089, July.
    15. Steffen Böhm & Michal Carrington & Nelarine Cornelius & Boudewijn Bruin & Michelle Greenwood & Louise Hassan & Tanusree Jain & Charlotte Karam & Arno Kourula & Laurence Romani & Suhaib Riaz & Deirdre , 2022. "Ethics at the Centre of Global and Local Challenges: Thoughts on the Future of Business Ethics," Journal of Business Ethics, Springer, vol. 180(3), pages 835-861, October.
    16. Christiane Marie Høvring & Sophie Esmann Andersen & Anne Ellerup Nielsen, 2018. "Discursive Tensions in CSR Multi-stakeholder Dialogue: A Foucauldian Perspective," Journal of Business Ethics, Springer, vol. 152(3), pages 627-645, October.
    17. David Doorey, 2011. "The Transparent Supply Chain: from Resistance to Implementation at Nike and Levi-Strauss," Journal of Business Ethics, Springer, vol. 103(4), pages 587-603, November.
    18. Aviva Geva, 2006. "A Typology of Moral Problems in Business: A Framework for Ethical Management," Journal of Business Ethics, Springer, vol. 69(2), pages 133-147, December.
    19. David P. Baron, 2001. "Private Politics, Corporate Social Responsibility, and Integrated Strategy," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 10(1), pages 7-45, March.
    20. Jaakko Siltaloppi & Risto Rajala & Henri Hietala, 2021. "Integrating CSR with Business Strategy: A Tension Management Perspective," Journal of Business Ethics, Springer, vol. 174(3), pages 507-527, December.
    21. Warren, Danielle E., 2022. "“Woke” Corporations and the Stigmatization of Corporate Social Initiatives," Business Ethics Quarterly, Cambridge University Press, vol. 32(1), pages 169-198, January.
    22. Luis Perez-Batres & Jonathan Doh & Van Miller & Michael Pisani, 2012. "Stakeholder Pressures as Determinants of CSR Strategic Choice: Why do Firms Choose Symbolic Versus Substantive Self-Regulatory Codes of Conduct?," Journal of Business Ethics, Springer, vol. 110(2), pages 157-172, October.
    23. Rosenthal, Sandra B. & Buchholz, Rogene A., 2000. "The Empirical-Normative Split in Business Ethics: A Pragmatic Alternative," Business Ethics Quarterly, Cambridge University Press, vol. 10(2), pages 399-408, April.
    24. Premilla D’Cruz & Shuili Du & Ernesto Noronha & K. Praveen Parboteeah & Hannah Trittin-Ulbrich & Glen Whelan, 2022. "Technology, Megatrends and Work: Thoughts on the Future of Business Ethics," Journal of Business Ethics, Springer, vol. 180(3), pages 879-902, October.
    25. Henri Kuokkanen & William Sun, 2020. "Companies, Meet Ethical Consumers: Strategic CSR Management to Impact Consumer Choice," Journal of Business Ethics, Springer, vol. 166(2), pages 403-423, October.
    26. Regina F. Bento & Lasse Mertins & Lourdes F. White, 2017. "Ideology and the Balanced Scorecard: An Empirical Exploration of the Tension Between Shareholder Value Maximization and Corporate Social Responsibility," Journal of Business Ethics, Springer, vol. 142(4), pages 769-789, June.
    27. Shawn Pope & Arild Wæraas, 2016. "CSR-Washing is Rare: A Conceptual Framework, Literature Review, and Critique," Journal of Business Ethics, Springer, vol. 137(1), pages 173-193, August.
    28. Aneta Havlinova & Jiri Kukacka, 2023. "Corporate Social Responsibility and Stock Prices After the Financial Crisis: The Role of Strategic CSR Activities," Journal of Business Ethics, Springer, vol. 182(1), pages 223-242, January.
    29. Alejo Sison & Joan Fontrodona, 2013. "Participating in the Common Good of the Firm," Journal of Business Ethics, Springer, vol. 113(4), pages 611-625, April.
    30. Hasnas, John, 1998. "The Normative Theories of Business Ethics: A Guide for the Perplexed," Business Ethics Quarterly, Cambridge University Press, vol. 8(1), pages 19-42, January.
    31. Deborah Johnson, 2015. "Technology with No Human Responsibility?," Journal of Business Ethics, Springer, vol. 127(4), pages 707-715, April.
    32. Michael Haenlein & Ming-Hui Huang & Andreas Kaplan, 2022. "Guest Editorial: Business Ethics in the Era of Artificial Intelligence," Journal of Business Ethics, Springer, vol. 178(4), pages 867-869, July.
    33. Smith, N. Craig & Palazzo, Guido & Bhattacharya, C. B., 2010. "Marketing’s Consequences: Stakeholder Marketing and Supply Chain Corporate Social Responsibility Issues," Business Ethics Quarterly, Cambridge University Press, vol. 20(4), pages 617-641, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. LeRoy Tim Ruhupatty & Melisa Ann Ruhupatty, 2024. "Investorsʼ view of mandatory corporate social responsibility as a public policy: The case of section 135 of the Indian Companies Act 2013," Asia and the Pacific Policy Studies, Wiley Blackwell, vol. 11(3), September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Matthew J. Spaniol & Evita Danilova-Jensen & Martin Nielsen & Carl Gyldenkærne Rosdahl & Clara Jasmin Schmidt, 2024. "Defining Greenwashing: A Concept Analysis," Sustainability, MDPI, vol. 16(20), pages 1-17, October.
    2. Peter Seele & Mario D. Schultz, 2022. "From Greenwashing to Machinewashing: A Model and Future Directions Derived from Reasoning by Analogy," Journal of Business Ethics, Springer, vol. 178(4), pages 1063-1089, July.
    3. Francesca Bernini & Fabio La Rosa, 2024. "Research in the greenwashing field: concepts, theories, and potential impacts on economic and social value," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 28(2), pages 405-444, June.
    4. Yinglin Huang & Claude Francoeur & Stephen Brammer, 2022. "What drives and curbs brownwashing?," Business Strategy and the Environment, Wiley Blackwell, vol. 31(5), pages 2518-2532, July.
    5. Huang, Kuo-Jui & Bui, Dien Giau & Hsu, Yuan-Teng & Lin, Chih-Yung, 2024. "The ESG washing in banks: Evidence from the syndicated loan market," Journal of International Money and Finance, Elsevier, vol. 142(C).
    6. Xiang, Yilin & Chen, Lu & Zhang, Zhenya & Sun, Xinyu, 2024. "Does perceived greenwashing promote or inhibit ethical voice? Effects of moral disengagement and perceived competitive pressure," Journal of Business Research, Elsevier, vol. 182(C).
    7. Mark Anthony Camilleri, 2017. "Corporate sustainability and responsibility: creating value for business, society and the environment," Asian Journal of Sustainability and Social Responsibility, Springer, vol. 2(1), pages 59-74, September.
    8. Javier Amores‐salvadó & Gregorio Martin‐de Castro & Elisabeth Albertini, 2022. "Walking the talk, but above all, talking the walk: Looking green for market stakeholder engagement," Post-Print halshs-03760088, HAL.
    9. Xing, Chao & Zhang, Xinyue & Zhang, Yuming & Zhang, Luxiu, 2024. "From green-washing to innovation-washing: Environmental information intangibility and corporate green innovation in China," International Review of Economics & Finance, Elsevier, vol. 93(PB), pages 204-226.
    10. Ma Zhong & Weiqi Zhao & Yasir Shahab, 2022. "The philanthropic response of substantive and symbolic corporate social responsibility strategies to COVID‐19 crisis: Evidence from China," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 29(2), pages 339-355, March.
    11. Zsófia Tóth & Robert Caruana & Thorsten Gruber & Claudia Loebbecke, 2022. "The Dawn of the AI Robots: Towards a New Framework of AI Robot Accountability," Journal of Business Ethics, Springer, vol. 178(4), pages 895-916, July.
    12. Carlos Ignacio Gallo Aguila & María del Pilar Castro Arellano & Marco Antonio Rodríguez Vega & Eliana Maritza Barturen Mondragón & María del Pilar Quezada Castro & Guillermo Alexander Quezada Cast, 2024. "Trends in Scientific Production on Greenwashing based on Scopus (1990-2023)," International Journal of Energy Economics and Policy, Econjournals, vol. 14(4), pages 464-471, July.
    13. Janine Maniora, 2018. "Mismanagement of Sustainability: What Business Strategy Makes the Difference? Empirical Evidence from the USA," Journal of Business Ethics, Springer, vol. 152(4), pages 931-947, November.
    14. Maria Figueroa-Armijos & Brent B. Clark & Serge P. da Motta Veiga, 2023. "Ethical Perceptions of AI in Hiring and Organizational Trust: The Role of Performance Expectancy and Social Influence," Journal of Business Ethics, Springer, vol. 186(1), pages 179-197, August.
    15. Venturelli, Valeria & Pedrazzoli, Alessia & Pennetta, Daniela & Gualandri, Elisabetta, 2024. "Pinkwashing in the banking industry: The relevance of board characteristics," Research in International Business and Finance, Elsevier, vol. 67(PB).
    16. Javier Amores‐Salvadó & Gregorio Martin‐de Castro & Elisabeth Albertini, 2023. "Walking the talk, but above all, talking the walk: Looking green for market stakeholder engagement," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(1), pages 431-442, January.
    17. Niyi Ogunbiyi & Artie Basukoski & Thierry Chaussalet, 2021. "An Exploration of Ethical Decision Making with Intelligence Augmentation," Social Sciences, MDPI, vol. 10(2), pages 1-14, February.
    18. Contreras-Pacheco, Orlando E. & Claasen, Cyrlene, 2017. "Fuzzy reporting as a way for a company to greenwash: perspectives from the Colombian reality," MPRA Paper 85472, University Library of Munich, Germany.
    19. Mario Vaupel & David Bendig & Denise Fischer-Kreer & Malte Brettel, 2023. "The Role of Share Repurchases for Firms’ Social and Environmental Sustainability," Journal of Business Ethics, Springer, vol. 183(2), pages 401-428, March.
    20. Shi, Daqian & Lu, Shan & Fang, Ziwei, 2024. "The effect of executive green human capital on greenwashing," Research in International Business and Finance, Elsevier, vol. 71(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:16:y:2024:i:3:p:1232-:d:1331164. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.