Public interests and corporate obligations: the challenge from consequentialism

In this chapter, I discuss the division of labour between private enterprises and the state. According to stakeholder theorists, a state should take into account the interests of all of its citizens, whereas a company should focus on the interests of its stakeholders. I focus on a challenge presented by one of the most famous and influential ethical theories, namely consequentialism. According to consequentialism, there is, at least in principle, no such thing as a division of labour between private enterprises and the state since every moral agent (including individuals, states, and corporations) should try to promote the good, seen from an impartial perspective, meaning that everybody’s interest should be taken into account (Kagan 1989). I conclude that stakeholder theorists are unable to meet the challenge presented by consequentialism by traditional means, i.e. by referring to social proximity principles. However, they might be able to defend their position by basing stakeholder theory on a particular kind of consequentialism.