Theorizing the Firm

Abstract

This chapter explores the corporation as a subject of moral and political theory. Companies have been neglected as a subject of political philosophy and of theories of trade in particular. This chapter defends the idea that firms are actors with moral responsibilities and subject to trade justice. It identifies questions about both the moral requirements applying to the corporation’s internal structure, including treatment of employees, and its responsibility to outside actors, including communities, other firms, or states as matters of trade justice. Firms ought to refrain from violations, and they ought to respect and they ought to support the principles of trade justice. Arguments that firms are, morally speaking, off the hook in matters of trade justice do not succeed. With regards to trade, arguments about market pressure, adversarial practices, obligations to shareholders and a division of labor fail. The chapter introduces a case study about Nike that allows the formulation of several questions about obligations of firms that the remaining chapters answer.