Conceptions of the Firm and Corporate Allegiances

This paper aims to integrate recent research on collective agency, corporate moral personhood, and corporate citizenship to answer the question of how corporations and corporate officers should respond to greater social expectations about the role of business in society. The central thesis advanced in this paper is twofold. First, the right answers to questions about corporate purpose and social responsibility depend on what the right conception of the firm is. Different conceptions of the firm will yield conflicting accounts of corporate purpose and responsibilities. Second, a normative theory of the firm can serve as a moral framework to make trade-offs and adjudicate competing stakeholder demands when decisions cannot be redescribed as win–win situations. By integrating the literature on the ontological status of collectives, the morality of corporate agents, and the responsibilities of business, this paper contributes a unique approach to defining what a person is, what the firm is, and, consequently, who has responsibilities (and what sort of responsibilities) to whom.