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Morality as a factor of production: Moral commitments as strategic risk management

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  • Hielscher, Stefan

Abstract

Through an analysis of Alfred Krupp's 19th-century social welfare program, this paper employs an ordonomic perspective on how morality can be employed as a factor of production. The paper's main argument is that corporate social responsibility (CSR) can be conceptualized as a corporate strategy of moral commitments to manage the relationship- based risks that arise out of social dilemma situations between the company and its stakeholders. Focusing primarily on relationship-based social risks that emerge from antagonistic cooperation, this paper also develops an ordonomic contribution to corporate risk management.

Suggested Citation

  • Hielscher, Stefan, 2009. "Morality as a factor of production: Moral commitments as strategic risk management," Discussion Papers 2009-14, Martin Luther University of Halle-Wittenberg, Chair of Economic Ethics.
    • Handle: RePEc:zbw:mlucee:200914
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    References listed on IDEAS

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    1. Hielscher, Stefan, 2009. "Moral als Produktionsfaktor: Ein unternehmerischer Beitrag zum strategischen Risikomanagement am Beispiel des Kruppschen Wohlfahrtsprogramms," Discussion Papers 2009-3, Martin Luther University of Halle-Wittenberg, Chair of Economic Ethics.
    2. Ulrich,Peter, 2008. "Integrative Economic Ethics," Cambridge Books, Cambridge University Press, number 9780521877961, September.
    3. Hielscher Stefan & Beckmann Markus, 2009. "Social Entrepreneurship und Ordnungspolitik: Zur Rolle gesellschaftlicher Change Agents am Beispiel des Kruppschen Wohlfahrtsprogramms / Social Entrepreneurship and Ordnungspolitik," ORDO. Jahrbuch für die Ordnung von Wirtschaft und Gesellschaft, De Gruyter, vol. 60(1), pages 435-462, January.
    4. Sinn, Hans-Werner, 1982. "Kinked utility and the demand for human wealth and liability insurance," European Economic Review, Elsevier, vol. 17(2), pages 149-162.
    5. Sinn Hans-Werner, 1986. "Risiko als Produktionsfaktor / Risk as a Factor of Production," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 201(6), pages 557-571, June.
    6. Sinn, Hans-Werner, 1986. "Risiko als Produktionsfaktor," Munich Reprints in Economics 19879, University of Munich, Department of Economics.
    7. Pies, Ingo & Hielscher, Stefan & Beckmann, Markus, 2009. "Moral Commitments and the Societal Role of Business: An Ordonomic Approach to Corporate Citizenship," Business Ethics Quarterly, Cambridge University Press, vol. 19(3), pages 375-401, July.
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    Cited by:

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    More about this item

    Keywords

    corporate risk management; ordonomics; corporate social responsibility; corporate citizenship; morality as a factor of production; strategic commitments; Strategisches Risikomanagement; Ordonomik; Corporate Social Responsibility; Corporate Citizenship; Moral als Produktionsfaktor; strategische Bindungen;
    All these keywords.

    JEL classification:

    • A12 - General Economics and Teaching - - General Economics - - - Relation of Economics to Other Disciplines
    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility

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