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Foucault, Corporate Social Responsibility and Corporate Sustainability

A special issue of Sustainability (ISSN 2071-1050). This special issue belongs to the section "Economic and Business Aspects of Sustainability".

Deadline for manuscript submissions: closed (1 September 2022) | Viewed by 17766

Special Issue Editors


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Guest Editor
Department of Management, Politics and Philosophy, Copenhagen Business School, 2000 Frederiksberg, Denmark
Interests: Michel Foucault; state/civil society; critical organization studies; welfare state; health promotion

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Guest Editor Assistant
Department of Philosophy and History of Ideas, School of Culture and Society, Aarhus University, 8000 Aarhus, Denmark
Interests: michel foucault; intellectual history of political economy; financial theory; ESG investments

Special Issue Information

Dear Colleagues,

This Special Issue invites contributions that use aspects of Michel Foucault’s broad authorship to analyze the concept of corporate social responsibility (CSR) as well as related concepts like Corporate Sustainability and ESG. Today, CSR has become a ubiquitous, self-evident business concept in the global economy, and yet critics often claim that its progressive promises of transforming capitalism remain unfulfilled. Some scholars argue that CSR’s radical potential has been washed out in step with its appropriation by mainstream corporate business management—a process through which CSR has become “de-radicalized” (Shamir, 2004). When CSR emerged in the 1950s, an explicit link was forged between social morality and ethics, on the one hand, and corporate business practice, on the other. However, after Milton Friedman’s argument in 1970 that CSR is justifiable only based on economic performance, the emphasis on morality receded during the following decades (Brooks, 2010). Some critical scholars trace CSR’s historical development, while others describe the notion’s more recent integration into corporatist culture broadly.

Whether CSR will play a significant transformative role in addressing the urgent issues of our time is an open and decisive question; such issues include global climate change, deforestation, growing social inequality, corporate economic crime, ensuring healthy labor conditions, respecting the rights of children, women, ethnic and sexual minorities, etc. We hence wish to approach CSR from a broad perspective, which means that, apart from research focused on CSR specifically, we welcome articles on a range of related themes exemplified at the end of this call. The field of possible contributions is thus wide-ranging. The theme of the Special Issue requires that contributing authors engage in some way with Foucault’s historical work, his analytical frameworks, his concepts, or his approach to critique. CSR can be situated at the intersection of politics, economics, and morality. How the concept evolves and is implemented results from power struggles over competing knowledge claims. Given that Foucault is the major thinker of the interplay of power and knowledge, he should offer untapped resources for grasping the complexities of involved in modern CSR. Let us briefly sketch out how select avenues in Foucault’s work is of potential relevance for themes related to CSR listed above.  

Overall, Foucault’s thinking can help to inquire into the set of institutions, discourses, and techniques that make up the conditions of possibility for corporations and individuals’ CSR-practice. First, Foucault’s genealogical method (Foucault, 1984) works by tracing how present institutions and governance principles, for example, CSR, emerged from past struggles, political strategies, and accidental events. From a genealogical perspective, the pragmatism of the modern CSR discourse can be better grasped by recovering CSR’s historical conditions of emergence. Genealogy takes as its basic premise that history is a site of evolving struggle, including struggles over divergent interpretations, which the development of the CSR discourse clearly displays. Studies of struggles around definitions of sustainability, accountability, transparency, and more would be pertinent for this Special Issue.

Second, studies of CSR inspired by Foucault may inquire into the dynamic interplay between power and resistance. Foucault insisted that power is always “reversible”, since resistance against (capitalist) power can itself begin to constitute a new form of domination, and hence, no concept is intrinsically progressive or liberating. Studies following this premise could examine how demands, notions, and initiatives (such as CSR or ESG) which respond to the negative effects of capitalist production either succeed in forging new policies and business practices or, conversely, become co-opted by the capitalist order, becoming integral to that order itself.   

Third, Foucault analyzed neoliberalism in his 1979 lecture series (2008), focusing on two forms of neoliberalism: German post-war liberalism and the liberalism of the Chicago School. Of particular relevance to contemporary debates on CSR is the arguments by American neo-liberals that redefined the social sphere as understandable through economic principles. They advanced the idea that the efficient work of rational–economic action in a system of competition requires limited governmental intervention, which is an idea that echoes in arguments for corporations’ and consumers’ voluntary responsibility and argues against legal intervention into business practices. How neoliberal assumptions, concepts, and models are mobilized in debates over the legitimate extent and enforceability of CSR principles is another relevant question for this Special Issue. 

Fourth, Foucault’s late authorship in the early 1980s, often termed his “ethical turn”, took him back to techniques of self-formation in Greco-Roman antiquity. There, Foucault discovered a “technical” notion of ethics less defined by submission to universal moral codes and instead focused more on the self’s work upon the self. Foucault’s “ethical turn” in the early 1980s hardly signified a departure from political issues, but a re-conception of politics as an ethical politics. Ethics is political, argued Foucault, in the sense that our self-fashioning involves what we are willing to accept or want to change in ourselves as well as in our circumstances: “[T]here is no first or final point of resistance to political power other than in the relationship one has to oneself” (Foucault, 2005: 252). Perhaps, the urgent issues of our time call for developing another form of ethics rather than models rooted in legal frameworks and Christian morality. The emergence of responsible consumers, climate conscious youths, “freeganism”, and dumpster diving could be analyzed with inspiration from Foucault’s work on ethics and self-formation.

Fifth, and finally, the concept of “the dispositive” has recently been introduced into Foucauldian scholarship as a highly promising analytical resource. A dispositive is defined as a historical configuration, which connects a series of discursive and non-discursive elements such as laws, practices, and techniques (Foucault, 1980). It designates a propensity in knowledge production and governmental practice, as well as a “dispositionality” in how institutions emerge and transform. The concept opens for analyzing how our practices, for example, risk assessments or divestment decisions, are conditioned by dispositives, that is, frameworks constituted by practices, techniques, and knowledge modalities. Foucault (2007) suggested that the dispositives of law, discipline, and security have been particularly important as responses to thorny governmental problems such as crime, infectious diseases, and labor unrest. Current problems such as climate change, environmental degradation, and extreme inequality could be analyzed as straddling between these deep-rooted frameworks of calculation and intervention.  

In this Special Issue, we wish to apply a broad perspective on CSR, inspired by Michel Foucault and his extensive historical and conceptual authorship, including subsequent governmentality studies. We seek contributions that not only focus on corporations’ social contributions to the wider society but also address related themes such as accountability, corporate sustainability, risk management, ESG standards, divestment, investor–company relations, transparency, green-washing, the use of “soft law” and self-regulation, responsible consumerism, labor conditions, the protection of minorities, climate change, the environmental impact of business, risk management, new compliance principles, and more. We invite work that addresses the following themes as well as the suggestions mentioned above (the list is by no means exclusive):

  • Genealogical studies can trace how the CSR discourse has emerged and evolved in different regions, sectors, and national contexts;
  • Inquiries into struggles around how CSR should be defined, which social actors clash in such struggles, and how CSR proponents draw on concepts and normative premises derived from economics, jurisprudence, moral philosophy, environmental science, and more;
  • Analysis of how “transparency” is produced as a discursive object in relation to CSR, Corporate Sustainability, and ESG, including which accounts and issues are regarded as relevant information;
  • Discourse analyses can explore how “sustainability principles” are defined in the CSR discourse and how CSR principles and Corporate Sustainability are designed particularly in regard to environmental factors;
  • ESG could be analyzed as an extension or competitor concept for CSR, e.g., it could be examined how the CSR discourse affects ESG discussions and targets, and vice versa. The effects of ESG could be compared to its declared targets, and which role ESG plays for the moral image of the investor and for the balance of power between investors and joint-stock companies could be explored;
  • Studies of the techniques that establish criteria used by CSR and ESG rating agencies in their assessment processes, including criteria for what should be measured and how to measure it;
  • Inquiries into the recent debates on the inclusivity of CSR and ESG concepts, including their social aspects, such as class, ethnicity, religion, sexuality, and gender;
  • Studies of the dispositives that condition what can essentially be defined as CSR, “sustainable” versus “unsustainable” investments, “divestment”, “good governance”, and firms’ “socially responsible performance”;
  • Research on the uses of financial models and technologies used in the management of risk and uncertainty related to environmental disruption, catastrophes, and scarcity.

References:

Brooks, S. (2010) ‘CSR and the Strait-Jacket of Economic Rationality’, International Journal of Sociology and Social Policy 30(11/12): 604–17.

Foucault, M. (2005) The Hermeneutics of the Subject: Lectures at the Collège de France 1981–1982, trans. Graham Burchell. New York: Picador.

Foucault, M. 2007. Security, Territory, Population: Lectures at the Collège de France, 1977–1978. New York: Palgrave Macmillan.

Foucault, M. (2008) Birth of Biopolitics: Lectures at the Collège de France, 1978-1979.New York: Palgrave Macmillan.

Foucault, M. (1980) ‘The Confession of the Flesh’. In Power/Knowledge: Selected Interviews and Other Writings 1972–1977, edited by Colin Gordon, pp. 194-240. New York: Pantheon Books.

Shamir, R. (2004) ‘The De-Radicalization of Corporate Social Responsibility’, Critical Sociology 33(3): 669–89.

Prof. Dr. Kaspar Villadsen
Guest Editor
Johannes Lundberg
Guest Editor Assistant

Manuscript Submission Information

Manuscripts should be submitted online at www.mdpi.com by registering and logging in to this website. Once you are registered, click here to go to the submission form. Manuscripts can be submitted until the deadline. All submissions that pass pre-check are peer-reviewed. Accepted papers will be published continuously in the journal (as soon as accepted) and will be listed together on the special issue website. Research articles, review articles as well as short communications are invited. For planned papers, a title and short abstract (about 100 words) can be sent to the Editorial Office for announcement on this website.

Submitted manuscripts should not have been published previously, nor be under consideration for publication elsewhere (except conference proceedings papers). All manuscripts are thoroughly refereed through a single-blind peer-review process. A guide for authors and other relevant information for submission of manuscripts is available on the Instructions for Authors page. Sustainability is an international peer-reviewed open access semimonthly journal published by MDPI.

Please visit the Instructions for Authors page before submitting a manuscript. The Article Processing Charge (APC) for publication in this open access journal is 2400 CHF (Swiss Francs). Submitted papers should be well formatted and use good English. Authors may use MDPI's English editing service prior to publication or during author revisions.

Keywords

  • Foucault discourse
  • power/knowkedge
  • CSR
  • ESG
  • corporate sustainability
  • accountability
  • divestment
  • risk management
  • environmental crises

Published Papers (8 papers)

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Editorial

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11 pages, 255 KiB  
Editorial
Guest Editors’ Introduction to Special Issue: ‘Foucault, Corporate Social Responsibility, and Corporate Sustainability’
by Kaspar Villadsen and Johannes Lundberg
Sustainability 2023, 15(6), 5110; https://doi.org/10.3390/su15065110 - 14 Mar 2023
Cited by 2 | Viewed by 1390
Abstract
At first glance, Michel Foucault might appear as an unexpected companion for a Special Issue on the themes of corporate social responsibility (CSR) and corporate sustainability [...] Full article

Research

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15 pages, 888 KiB  
Article
When Aging and Climate Change Are Brought Together: Fossil Fuel Divestment and a Changing Dispositive of Security
by Darlene Himick
Sustainability 2023, 15(5), 4581; https://doi.org/10.3390/su15054581 - 03 Mar 2023
Viewed by 1190
Abstract
Pension funds have become major targets for the incorporation of climate change into their investment decisions. Recently, divestment from carbon intensive companies or industries has been the object of a wave of campaigns directed at these institutional investors. This paper uses Foucault’s dispositive [...] Read more.
Pension funds have become major targets for the incorporation of climate change into their investment decisions. Recently, divestment from carbon intensive companies or industries has been the object of a wave of campaigns directed at these institutional investors. This paper uses Foucault’s dispositive of security to investigate the decisions of one organization, the New York State Common Retirement Fund, which in 2021 divested from seven oil sands companies. Conceptualizing divestment within a security dispositive helps us build theory which understands divestment within existing security-oriented arrangements. It shows how changes build upon the existing dispositive, and that by looking to existing governing arrangements we can see elements that act as operators to change their direction and emphasis. In the case of pension fund divestment, risk is the operator that both sustains the investment function and also tilts the arrangement towards climate change. In these existing arrangements lay the ingredients for future social relations. Full article
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21 pages, 319 KiB  
Article
Finance Must Be Defended: Cybernetics, Neoliberalism and Environmental, Social, and Governance (ESG)
by William R. Morgan
Sustainability 2023, 15(4), 3707; https://doi.org/10.3390/su15043707 - 17 Feb 2023
Viewed by 2414
Abstract
In the last decade, interest in environmental, social, and governance (ESG) surged dramatically. This article contends that corporate perspectives on ESG—as managing risk and/or returning expected value—are insufficient to account for developments presently unfolding in the ESG finance space. There, novel derivative tools [...] Read more.
In the last decade, interest in environmental, social, and governance (ESG) surged dramatically. This article contends that corporate perspectives on ESG—as managing risk and/or returning expected value—are insufficient to account for developments presently unfolding in the ESG finance space. There, novel derivative tools are being developed and deployed, promising to flip the sustainability market on its head. Unlike other sustainability metrics or strategies, ESG derivatives do not attempt to price a given firm’s risk profile in light of the environment, but rather seek to price the risk profile of environmental catastrophe itself. What this translocation of risk prophesies is the direct application of financial engineering to the climate. In this article, re-visiting the late work of Friedrich Hayek and tracing his legacy in Michel Foucault’s lectures on neoliberalism frames my argument that the modern financial system from which these derivatives spring is best understood as a cybernetic one. Cybernetic systems are ones that endeavor to negate entropy and maintain organization by means of information feedback loop-based learning; in finance, this takes the form of Hayekian price discovery. With ESG derivatives, the system of cybernetic finance is presently setting to work converting climate uncertainty into pricing efficiency. Because derivatives such as these represent the polity’s most advanced media for the meaningful sensation of threats, what emerges about the environment from the trade of these products will soon be fed backwards as a powerful set of inputs to governance, shaping how the climate is brought into representation and what responses to its associated crises are possible. Full article
26 pages, 2370 KiB  
Article
The ESG Discourse Is Neither Timeless Nor Stable: How Danish Companies ‘Tactically’ Embrace ESG Concepts
by Henrik Nielsen and Kaspar Villadsen
Sustainability 2023, 15(3), 2766; https://doi.org/10.3390/su15032766 - 03 Feb 2023
Cited by 2 | Viewed by 3246
Abstract
During the last decade, ESG has become a globally widespread doctrine of good investment principles. ESG defines investing for broader, extra-financial goals by the use of “environmental, social and governance” (ESG) factors. While commentators generally agree that ESG has become a crucial arena [...] Read more.
During the last decade, ESG has become a globally widespread doctrine of good investment principles. ESG defines investing for broader, extra-financial goals by the use of “environmental, social and governance” (ESG) factors. While commentators generally agree that ESG has become a crucial arena for defining responsible investment, research is so far scarce on the conceptual development of the ESG discourse as well as how companies articulate it in their public communication. By analysing ESG concepts, this article combines methods derived from corpus linguistics with dispositional analytics, inspired by Michel Foucault. The data material consists of 281 annual reports, which contain the self-representation of 24 Danish large-cap companies, including how they communicated their ESG policies from 2010 to 2021. The analysis displays the proliferation of specific ESG keywords as well as changes over time in their frequency, proportional to each other. We supplement the quantitative analyses with dispositional analytics, considering how the dispositives of law, discipline, and security condition Danish companies’ adoption of ESG. We also discuss how companies use ESG concepts ‘tactically’ to navigate a context, in which the dispositives ‘over-determine’ urgent environmental, social, and governance issues. Full article
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15 pages, 287 KiB  
Article
Sustainable Healthcare Education as a Practice of Governmentality?
by Tony Sandset and Eivind Engebretsen
Sustainability 2022, 14(22), 15416; https://doi.org/10.3390/su142215416 - 20 Nov 2022
Viewed by 1721
Abstract
Sustainability as a concept is found across a multitude of sectors in today’s society. This ‘sustainability turn’ as we might call it, has made its entry into educational paradigms such as ‘education for sustainable development’. The healthcare sector has embraced the notion of [...] Read more.
Sustainability as a concept is found across a multitude of sectors in today’s society. This ‘sustainability turn’ as we might call it, has made its entry into educational paradigms such as ‘education for sustainable development’. The healthcare sector has embraced the notion of sustainability primarily by emphasizing how climate change impacts human health. Epitomized in the new paradigm of sustainable healthcare education (SHE), or education for sustainable healthcare (ESH), the sustainability turn has arrived with full force within medical education. This article will argue that sustainable healthcare education may be analyzed as a governmental practice. We ask: by what governmental techniques does one seek to create sustainable health subjects, i.e., self-leading future doctors? On the one hand, sustainability is a call for global engagement that goes beyond the health of the singular patients within the paradigm of SHE. On the other hand, it can risk producing individual doctors and students that are responsibilized in the name of sustainability to take on ever-increasing tasks to foster human and planetary health. In this way, we argue that the SHE paradigm might risk transferring responsibility from the state to the individual to achieve ‘sustainable health’. Full article
11 pages, 238 KiB  
Article
Investment and Rapid Climate Change as Biopolitics: Foucault and Governance of the Self and Others through ESG
by Timothy W. Luke
Sustainability 2022, 14(22), 14974; https://doi.org/10.3390/su142214974 - 12 Nov 2022
Cited by 4 | Viewed by 2283
Abstract
Environmental, social and governance (ESG) investment strategies today are an established practice in personal and public finance. They also provide crucial benchmarks for corporate social responsibility policy in gauging the performance of due diligence and return on investment by financial managers. This study [...] Read more.
Environmental, social and governance (ESG) investment strategies today are an established practice in personal and public finance. They also provide crucial benchmarks for corporate social responsibility policy in gauging the performance of due diligence and return on investment by financial managers. This study explores the growing conflict within these economic and policy networks over “value-oriented”, or total financial return, and “values-oriented”, or comprehensive non-financial impact, capital investment in recent years. How to balance these two discursive constructions of value in the pursuit of “sustainability” for both the economy and the environment at the same time is an operational challenge that managers, environmentalists and scientists have not yet fully answered. It also indicates how Michel Foucault’s approach to the power/knowledge nexus in biopolitics provides a useful perspective on these ideologically and politically charged debates over how to invest capital and steer business activity to deliver solid returns in the market as well as support more ethical and economical public policies to respond to climate change, social injustice and governance failure. Full article
15 pages, 314 KiB  
Article
Agency Theory’s “Truth Regime”: Reading Danish Pension Funds’ Decisions Regarding Shell from the Perspective of Agency Theory
by Johannes Lundberg
Sustainability 2022, 14(22), 14801; https://doi.org/10.3390/su142214801 - 10 Nov 2022
Cited by 1 | Viewed by 1441
Abstract
With the progression of both the climate crisis and financial capitalism, institutional investors play an increasingly central role in fossil fuel companies’ business decisions. Against this backdrop, this article investigates the underlying rationales of Danish pension funds’ climate-related investment decisions analyzed from the [...] Read more.
With the progression of both the climate crisis and financial capitalism, institutional investors play an increasingly central role in fossil fuel companies’ business decisions. Against this backdrop, this article investigates the underlying rationales of Danish pension funds’ climate-related investment decisions analyzed from the perspective of one of the dominant finance theories today on the governance relationship between investors and corporations: agency theory. Hitherto, investors’ climate-related investment decisions have not yet been studied from the perspective of how investors’ actions align with the assumptions of agency theory. Thus, this study explores the degree to which select Danish pension funds’ climate-related investment decisions regarding Royal Dutch Shell can be verified according to agency theory. First, deploying Foucault’s notion of a “truth regime”, the article analyzes how a certain action can be defined as true, read from the perspective of investment assumptions derived from agency theory, a truth regime of agency theory. Second, the paper explores the degree to which this truth regime can be identified in the climate-related investment decisions of the three Danish pension funds, PFA, PKA, and AkademikerPension, regarding Shell’s general assembly, 2021. The investigation concludes that the assumptions of the agency theory truth regime constitute a part of the central reasonings in financial capitalism and that, insofar as investors significantly align with the prescriptions of agency theory, it substantially reduces their possibilities to take Paris-aligned investment decisions. Full article

Other

Jump to: Editorial, Research

22 pages, 988 KiB  
Essay
CSR and the Hermeneutical Renovation of Foucault’s Toolbox
by Jeremy Tauzer
Sustainability 2023, 15(5), 4682; https://doi.org/10.3390/su15054682 - 06 Mar 2023
Viewed by 1459
Abstract
This article aims to examine Foucault’s conceptual toolbox (methodology, conceptual tools, and conceptual meta-tools) in relation to the socio-historical analysis of CSR and of the corporation. The article has a bidirectional purpose: it aims to use Foucault’s toolbox to analyze CSR, and to [...] Read more.
This article aims to examine Foucault’s conceptual toolbox (methodology, conceptual tools, and conceptual meta-tools) in relation to the socio-historical analysis of CSR and of the corporation. The article has a bidirectional purpose: it aims to use Foucault’s toolbox to analyze CSR, and to use the occasion of applying Foucault to CSR to reflect on the interpretation, critical potential, and adequacy of Foucault’s conceptual toolbox. It starts with some preliminary work: a review and rework of an interpretation of Foucault’s conceptual toolbox by Koopman and Matza. With this interpretationally revised toolbox in mind, it then initiates a Foucauldian approach to the research field of ‘the corporation’ and the sub-field of CSR. Most of the first half of this article demonstrates that Foucault’s toolbox offers a fruitful start to tackling these fields. The second half of the article takes up a counterpoint in the reverse direction, namely that Foucault’s toolbox is not equipped for adequately apprehending the interpretative play and flexibility operating within CSR discourse. This leads to a suggestion of three ways to incorporate hermeneutic tools into Foucault’s toolbox, and to an exemplification of how such toolbox renovation sheds new light on the tactics and power dynamics of CSR discourse. Full article
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