Abstract

In opposition to corporate social responsibility theories, this work proposes an individual theory of moral responsibility in business , combining the view that no one owns the firm with the principle of autonomy. The firm is viewed as a contractual nexus of input owners, each an autonomous individual with a right to choose and pursue one's plan of life, consistent with the same right in others. In this view, the firm, as a means of each pursuing one's plan of life, is a center of moral as well as productive relationships. ;Insofar as the autonomy principle imposes a duty on individuals to respect the same right in others, all parties to the firm are expected to act in a manner that any rational individual, choosing on universalizable principles, would accept. ;While in general, we argue that rational individuals, acting with knowledge and freedom, are responsible for singly and jointly determined effects of their actions, we recognize that hierarchical organization and decision specialization redistribute responsibleness in the firm. Further, we recognize property-rights contracts and the technical imperative for survival of the firm as special sources of obligation in the firm. ;Within the above context, we argue that first parties with control of firm inputs, policy, and decision-making structures are morally responsible for harmful effects resulting from the cooperative firm activity which they knowingly and freely bring about and for assuring that decision structures satisfy the autonomy principle. Second parties--employees, customers, investors, etc.--are responsible for acting cooperatively in the joint undertaking of the firm and also for the negative effects they knowingly and freely participate in bringing about. The autonomy framework principle determines which harmful effects to third parties the firm nexus must internalize and which third party special-interest structures on firm activity are justified