3.5 MOIFIED VERSION OF THE CLASSICAL MODEL: THE MORAL MINIMUM
In theory, the classical model remains an attractive ideal. It is an elegant theory that appeals to such important ethical norms as utilitarianism, freedom, and private property. It carries strong rhetorical force by its connection to the free enterprise system, free markets, and capitalism. But the fact of the matter is that even its staunchest defenders acknowledge its limitations. The imperative to maximize profits is always conditioned by such phrases as “within the law,” “without deception or fraud,””while conforming to the basic rules of society, both those embodied in law and those embodied in ethical custom.” These restrictions simply acknowledge the legitimacy of placing ethical limitations beyond merely obeying the law on the pursuit of profit. In many ways, the only debate remaining is the debate over where those limits are to be set.
It was perhaps considerations such as this that, in 1991, led philosopher Norman Bowie to claim that “something of a consensus has emerged in the past 10 years regarding the social responsibility of business.” Bowie labels this consensus the neoclassical model of corporate social responsibility. The pursuit of profit is constrained by an obligation to obey a moral minimum. Business managers must first meet certain moral obligations which, once met, open the door to the pursuit of profit.8
The significance of the moral minimum approach lies in its recognition that compliance with the law is insufficient for being an ethically responsible business. An adequate theory of corporate social responsibility must extend beyond the law to acknowledge ethical duties. Business managers and executives must understand that hiring a compliance office is only a first step in the process of integrating ethics into a business. However, in recognizing that ethical duties do bind business managers and create a constraint on the pursuit of profit, the moral minimum approach has opened the door to a broader understanding of ethical responsibilities. We turn now to the stakeholder theory of corporate social responsibility, an approach that carries the moral minimum to its logical conclusion.