Morality as a Factor of Production: Moral Commitments as Strategic Risk Management

Abstract

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