A pragmatist case for thoughtfulness and experimentation in corporate governance.

Abstract

Despite interminable debate, ethical perspectives have sought to stem the abuse of corporate power by focusing on the split between utility-focused attention to shareholder value, including the ‘enlightened’ kind, and duty-focused imperatives in stakeholder theory. Through thought experiments, this chapter builds a case for a different approach. Ethics scholars including Brandt (1959) and Frankena (1963) highlight contrasting approaches to both utility and duty, separating formation of general rules from examination of individual acts. Act-based ethics points us toward the pragmatism of James (1907/1955) and Dewey (1930) and ‘what works.’ In the context of boards that means connecting duty and consequences and encouraging a fullness of thought: board-level thoughtfulness. This approach has echoes of Werhane’s (2002, 2008) concept of moral imagination and Rorty’s (2006) more radical call to reject recipes and seek new solutions.