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Shared Value and the Impartial Spectator Test

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  • Isabelle Szmigin
  • Robert Rutherford

Abstract

Growing inequality and its implications for democratic polity suggest that corporate social responsibility (CSR) has not proved itself in twenty-first century business, largely as it lacks clear criteria of demarcation for businesses to follow. Today the problem is viewed by many commentators as an ethical challenge to business itself. In response to this challenge, we begin by examining Porter and Kramer’s (Harv Bus Rev 89(January–February):64–77, 2011 ) call for a shift from a social responsibility to a shared value framework and the need to respond to the problem of the ‘separation thesis’ between business and ethics (Wicks, Bus Soc 35(1):89–118, 1996 ; Harris and Freeman, Bus Ethics Q 18(4):541–548, 2008 ). We identify the eighteenth century economist and philosopher Adam Smith in his book The Theory of Moral Sentiments as a source for an ethical approach to business. Building on his central concept of ‘sympathy’, we introduce the idea of the Impartial Spectator Test, which we argue builds on traditional stakeholder perspectives and which provides an objective route to ethical criteria of demarcation. We conclude by assessing how this approach adds to the existing debate around social responsibility and shared value. Copyright Springer Science+Business Media B.V. 2013

Suggested Citation

  • Isabelle Szmigin & Robert Rutherford, 2013. "Shared Value and the Impartial Spectator Test," Journal of Business Ethics, Springer, vol. 114(1), pages 171-182, April.
  • Handle: RePEc:kap:jbuset:v:114:y:2013:i:1:p:171-182
    DOI: 10.1007/s10551-012-1335-1
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    References listed on IDEAS

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    Cited by:

    1. Brent D. Beal & Marina Astakhova, 2017. "Management and Income Inequality: A Review and Conceptual Framework," Journal of Business Ethics, Springer, vol. 142(1), pages 1-23, April.
    2. Hermans, Julie & Slabbinck, Hendrik & Vanderstraeten, Johanna & Brassey, Jacqueline & Dejardin, Marcus & Ramdani, Dendi & van Witteloostuijn, Arjen, 2017. "The power paradox : Implicit and explicit power motives, and the importance attached to prosocial organizational goals in SMEs," Other publications TiSEM 51db3f0c-5e5f-41b1-b560-5, Tilburg University, School of Economics and Management.
    3. Arjen van Witteloostuijn & Marcus Dejardin & Julie Hermans & Dendi Ramdani, & Johanna Vanderstraeten & Jacqueline Brassey & Hendrik Slabbinck, 2015. "Fitting entrepreneurial, firm-level and environmental contingencies for better performance," Post-Print halshs-01379907, HAL.
    4. Marcelo Royo-Vela & Jonathan Cuevas Lizama, 2022. "Creating Shared Value: Exploration in an Entrepreneurial Ecosystem," Sustainability, MDPI, vol. 14(14), pages 1-23, July.
    5. Michal Carrington & Detlev Zwick & Benjamin Neville, 2019. "Activism and Abdication on the Inside: The Effect of Everyday Practice on Corporate Responsibility," Journal of Business Ethics, Springer, vol. 160(4), pages 973-999, December.
    6. Dongmin Lee & Junghoon Moon & Young Chan Choe & Jaeseok Jeong, 2016. "Impacts of Socially Responsible Corporate Activities on Korean Consumers’ Corporate Evaluations in the Agrifood Industry," Sustainability, MDPI, vol. 8(12), pages 1-18, December.
    7. Krzysztof Dembek & Prakash Singh & Vikram Bhakoo, 2016. "Literature Review of Shared Value: A Theoretical Concept or a Management Buzzword?," Journal of Business Ethics, Springer, vol. 137(2), pages 231-267, August.
    8. Ta-Kai Yang & Min-Ren Yan, 2020. "The Corporate Shared Value for Sustainable Development: An Ecosystem Perspective," Sustainability, MDPI, vol. 12(6), pages 1-16, March.
    9. Julie Hermans & Hendrik Slabbinck & Johanna Vanderstraeten & Jacqueline Brassey & Marcus Dejardin & Dendi Ramdani & Arjen Van Witteloostuijn, 2017. "The Power Paradox: Implicit and Explicit Power Motives, and the Importance Attached to Prosocial Organizational Goals in SMEs," Sustainability, MDPI, vol. 9(11), pages 1-26, November.
    10. Laura Corazza & Simone Domenico Scagnelli & Chiara Mio, 2017. "Simulacra and Sustainability Disclosure: Analysis of the Interpretative Models of Creating Shared Value," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 24(5), pages 414-434, September.
    11. D. A. L. Coldwell, 2017. "Custom and Moral Sentiment: Cross-Cultural Aspects of Postgraduate Student Perceptions of Leadership Ethicality," Journal of Business Ethics, Springer, vol. 145(1), pages 201-213, September.
    12. Kévin André & Sylvain Bureau & Arthur Gautier & Olivier Rubel, 2017. "Beyond the Opposition Between Altruism and Self-interest: Reciprocal Giving in Reward-Based Crowdfunding," Journal of Business Ethics, Springer, vol. 146(2), pages 313-332, December.
    13. Marta Rocchi & Ignacio Ferrero, 2014. "Systematic Shared Value in Finance: Expanding Porter's Approach," Faculty Working Papers 07/14, School of Economics and Business Administration, University of Navarra.
    14. Albert D. Spalding & Gretchen R. Lawrie, 2019. "A Critical Examination of the AICPA’s New “Conceptual Framework” Ethics Protocol," Journal of Business Ethics, Springer, vol. 155(4), pages 1135-1152, April.

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