Skip to main content
Log in

Business Firms as Moral Agents: A Kantian Response to the Corporate Autonomy Problem

  • Original Paper
  • Published:
Journal of Business Ethics Aims and scope Submit manuscript

Abstract

The idea that business firms qualify as group moral agents offers an attractive basis for understanding corporate moral responsibility. However, that idea gives rise to the “corporate autonomy problem” (CAP): if firms are moral agents, then it seems we must accept the implausible conclusion that firms have basic moral rights, such as the rights to life and liberty. The question, then, is how one might retain the fruitful idea of firms as moral agents, yet avoid CAP. A common approach to avoiding CAP appeals to specific features of human embodiment, such as vulnerability to pain, as the basis for attributing moral rights to human persons but not to firms. But that response has less purchase in a Kantian framework, which does not ground moral status in such particularities of human embodiment, but rather in the rational nature that humans share with other rational beings. To avoid CAP while retaining a (broadly) Kantian framework, one does better to rely on features of firms as cooperative, compositionally derivative moral agents, created for the pursuit of specific ends. As derivative agents, firms do not qualify as Kantian ends in themselves, and thus are not appropriate bearers of basic moral rights. To further clarify the level of consideration we owe to firms, I draw on Darwall’s distinction between recognition respect and moral esteem, arguing that we should not respect firms as unconditional ends in themselves, but rather esteem morally autonomous firms as collective achievements of their human members.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Similar content being viewed by others

Notes

  1. See Kant (1994, p. 3; Ak. 4: 389): “the ground of obligation here must therefore be sought not in the nature of man … but a priori solely in the concepts of pure reason.” Our moral status for Kant depends precisely on our capacity to respond to such concepts, such as the ideas of a good will and duty.

  2. For examples of discourse-ethical approaches, see Goodman and Arenas (2015); Stansbury (2009); Zakhem (2008).

  3. On Habermas’s view of environmental stakeholders, see Habermas (1993, pp. 105–11); Ott (1996, pp. 86–128); Scanlon considers a range of stakeholder types, including plants and animals (1998, pp. 177–87).

  4. For influential approaches to group agency and collective intentionality, see Gilbert (1989); Bratman (1993; 2009); Tuomela (2007; 2013); List and Pettit (2011); for an accessible overview, see Tollefsen (2015).

  5. Here I draw out implications of French’s rather thin analysis of corporate reasons; for closer analysis, see Tuomela (2007, 2013). Hindriks (2014, pp. 1567–68) makes a similar move in his interpretation of French.

  6. On the idea of status or considerability, see Jaworska and Tannenbaum (2021).

  7. French (1995) attempts to address this problem.

  8. E.g., Tollefsen (2008); see also the discussion in Hindriks (2018).

  9. Silver (2019, pp. 262–63) offers reasons for thinking that corporate agents might indeed be conscious, but that claim remains very speculative.

  10. Hess does not use Hindriks’ label, but her argument clearly intends to analyze CAP as it might appear in a Kantian framework.

  11. For the purposes of my argument I re-arrange Hess’s ordering of these components.

  12. Hess (2018, p. 83) simply uses the term “moral agent” in this deduction, but the thrust of her argument justifies the more precise label of “autonomous moral agent.”

  13. Kant’s binary model is not easily avoided, once one grounds moral obligation in autonomous agency (Wood and O’Neill, 1998).

  14. Kant (1991, p. 238; Ak. 6:443); see also Wood and O’Neill (1998).

  15. Thus my proposal responds to difficulties that Wringe (2014) observed in the application of Kant’s humanity principle to firms.

  16. See Kant (1994, pp. 35, 40; Ak. 4: 428, 434–35).

  17. Kant (1994, pp. 35–36; Ak. 4:427–29); see also Denis (2001, pp. 51–67).

  18. Kant’s position on this point is complex; I rely on Denis (2001, pp. 52–54).

  19. See also Hindriks (2018) on the membership presuppositions of firms that qualify as moral agents.

  20. As Werhane puts this point, “Moral reactions of persons [i.e., the firm’s members] are necessary (but not sufficient) for collective moral reaction” (1985, p. 58).

  21. See Denis (2001, pp. 52–57).

  22. For early ideas of derivative agency, see Werhane (1985, chap. 2); also May (1983). Neither is adequate for my purposes. May’s idea of “vicarious agency” relies on a problematic notion of legal legacy (Werhane 1985, p. 57 note 6). Werhane’s distinction between “primary” and “secondary” agency is not geared to a Kantian framework, indeed she explicitly denies that firms are autonomous, a capacity she limits to “psychophysical entities” (1985, pp. 54, 56–57).

  23. Thus I do not think that we rightly esteem a moral machine, say a self-driving vehicle guided by a machine-learning algorithm trained to deliver reliably moral choices. The reason is that such a machine lacks general AI, so we have no reason to think it can receive our esteem any more than a simple tool can.

References

  • Altman, M. C. (2007). The decomposition of the corporate body: What Kant cannot contribute to business ethics. Journal of Business Ethics, 74, 253–266.

    Article  Google Scholar 

  • Applbaum, A. (1999). Ethics for adversaries. Princeton University Press.

    Google Scholar 

  • Björnsson, G., & Hess, K. (2017). Corporate crocodile tears? On the reactive attitudes of corporate agents. Philosophy and Phenomenological Research, 94(2), 273–298.

    Article  Google Scholar 

  • Bowie, N. E. (2017). Business ethics: A kantian perspective (2nd ed.). Cambridge University Press.

    Book  Google Scholar 

  • Bratman, M. E. (1993). Shared intentions. Ethics, 104(1), 97–113.

    Article  Google Scholar 

  • Bratman, M. E. (2009). Shared agency. In C. Mantzavinos (Ed.), Philosophy of the social sciences (pp. 41–59). Cambridge University Press.

    Chapter  Google Scholar 

  • Darwall, S. L. (1977). Two kinds of respect. Ethics, 88(1), 36–49.

    Article  Google Scholar 

  • Darwall, S. L. (2006). The second-person standpoint. Harvard University Press.

    Google Scholar 

  • Denis, L. (2001). Moral self-regard. Garland.

    Google Scholar 

  • Evan, W. M., & Freeman, R. E. (1988). A stakeholder theory of the modern corporation: Kantian capitalism. In T. L. Beauchamp & N. E. Bowie (Eds.), Ethical Theory and Business (3rd ed., pp. 97–106). Prentice Hall.

    Google Scholar 

  • French, P. A. (1979). The corporation as a moral person. American Philosophical Quarterly, 3, 207–215.

    Google Scholar 

  • French, P. A. (1995). Corporate ethics. Harcourt Brace.

    Google Scholar 

  • Gilbert, M. (1989). On social facts. Routledge.

    Google Scholar 

  • Goodman, J., & Arenas, D. (2015). Engaging ethically: A discourse ethics perspective on social shareholder engagement. Business Ethics Quarterly, 25(2), 163–189.

    Article  Google Scholar 

  • Habermas, J. (1993). Justification and application, trans. Cambridge, MA: MIT Press.

    Google Scholar 

  • Habermas, J. (1998). The inclusion of the other, trans. Cambridge, MA: MIT Press.

    Google Scholar 

  • Heath, J. (2014). Morality, competition, and the firm. Oxford University Press.

    Book  Google Scholar 

  • Hess, K. M. (2013). “If you tickle us…” How corporations can be moral agents without being persons. Journal of Value Inquiry, 47, 319–335.

    Article  Google Scholar 

  • Hess, K. M. (2014). The free will of corporations (and other collectives). Philosophical Studies, 168(1), 241–260.

    Article  Google Scholar 

  • Hess, K. M. (2018). Does the machine need a ghost? Corporations as nonconscious Kantian corporate agents. Journal of the American Philosophical Association, 4(1), 67–86.

    Article  Google Scholar 

  • Hindriks, F. (2014). How autonomous are collective agents? Corporate rights and normative individualism. Erkenntnis, 79, 1565–1585.

    Article  Google Scholar 

  • Hindriks, F. (2018). Collective agency: Moral and amoral. Dialectica, 17(1), 3–23.

    Article  Google Scholar 

  • Jaworska, A., & Tannenbaum, J. (2021). The grounds of moral status, The Stanford Encyclopedia of Philosophy, Edward N. Zalta (ed.). Retrieved 19 July 2021. https://plato.stanford.edu/archives/spr2021/entries/grounds-moral-status/.

  • Kant, I. (1991). The metaphysics of morals, trans. Cambridge University Press.

    Google Scholar 

  • Kant, I. (1994) Grounding for the Metaphysics of Morals, trans. J. W. Ellington. In: Kant, I., Ethical Philosophy. Hackett, Indianapolis.

  • List, C., & Pettit, P. (2011). Group agency. Oxford University Press.

    Book  Google Scholar 

  • Manning, R. C. (1984). Corporate responsibility and corporate personhood. Journal of Business Ethics, 3(1), 77–84.

    Article  Google Scholar 

  • Manning, R. C. (1988). Dismemberment, divorce, and hostile takeovers: A comment on corporate moral personhood. Journal of Business Ethics, 7(8), 639–643.

    Article  Google Scholar 

  • May, L. (1983). Vicarious agency and corporate responsibility. Philosophical Studies, 43(1), 69–82.

    Article  Google Scholar 

  • McMahon, C. (1981). Morality and the invisible hand. Philosophy and Public Affairs, 10(3), 246–277.

    Google Scholar 

  • Ott, K. (1996) Vom Begründen zum Handeln. Attempto, Tübingen.

  • Scanlon, T. M. (1998). What we owe to each other. Belknap-Harvard University Press.

    Google Scholar 

  • Silver, K. (2019). Can a corporation be worthy of moral consideration? Journal of Business Ethics, 159, 253–265.

    Article  Google Scholar 

  • Stansbury, J. (2009). Reasoned moral agreement: Applying discourse ethics within organizations. Business Ethics Quarterly, 19(1), 33–56.

    Article  Google Scholar 

  • Tollefsen, D. P. (2008). Affectivity, moral agency, and corporate-human relations. APA Newsletter on Philosophy and Law, 7(2), 9–13.

    Google Scholar 

  • Tollefsen, D. P. (2015). Groups as Agents. Polity, Cambridge

  • Tuomela, R. (2007). The Philosophy of Sociality. Oxford University Press.

    Book  Google Scholar 

  • Tuomela, R. (2013). Social Ontology. Oxford University Press.

    Book  Google Scholar 

  • Werhane, P. H. (1985). Persons, Rights, and Corporations. Prentice-Hall.

    Google Scholar 

  • Wood, A. W., & O’Neill, O. (1998). Kant on duties regarding nonrational nature. Proceedings of the Aristotelian Society, Supplementary, 72, 189–228.

    Article  Google Scholar 

  • Wringe, B. (2014). May I treat a collective as a mere means? American Philosophical Quarterly, 51(3), 273–284.

    Google Scholar 

  • Zakhem, A. (2008). Stakeholder management capability: A discourse-theoretical approach. Journal of Business Ethics, 79, 395–405.

    Article  Google Scholar 

Download references

Acknowledgements

I thank James Fisher and two anonymous reviewers for their comments on earlier versions of this paper.

Funding

The author did not receive support from any organization for the submitted work.

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to William Rehg.

Ethics declarations

Conflict of interest

The author has no conflict of interest to declare that are relevant to the content of this article.

Additional information

Publisher's Note

Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.

Rights and permissions

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Rehg, W. Business Firms as Moral Agents: A Kantian Response to the Corporate Autonomy Problem. J Bus Ethics 183, 999–1009 (2023). https://doi.org/10.1007/s10551-022-05042-z

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s10551-022-05042-z

Keywords

Navigation