Abstract
Capitalism is an economic system characterized by private ownership and market-allocated resources. Market capitalism currently faces numerous threats that may disturb the foundations of capitalism. In the past 50 years, the world has experienced unprecedented economic growth, which is largely attributable to the global spread of market capitalism (Meyer & Kirby, 2012). Since the 1990s, re-engineering, subcontracting, and globalization have become the prevalent mainstream operation and management models. According to ‘re-engineering,’ business operations are examined from a technological perspective that ignores human needs. Because of globalization, businesses in developed regions can engage in subcontracting to outsource non-core business and direct manufacturing to developing countries and areas, enabling the businesses in developed regions to reduce the long-term burdens and responsibilities of their employees. Because the contracted businesses face substantial cost pressures, they endeavor to reduce labor costs as much as possible. Several businesses even believe that the ability to achieve lower labor costs is a competitive advantage for developing countries and areas. The operation and management models have faced a ‘double squeeze’ from humans’ greedy nature (e.g., neglecting human needs; subcontracting employee challenges and responsibilities) and the pressure of competition (e.g., businesses’ fear of losing contracts and profits).
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
Similar content being viewed by others
References
Adobor, H. (2012). Ethical issues in outsourcing: the case of contract medical research and the global pharmaceutical industry. Journal of Business Ethics, 105, 239–255.
Amaeshi, K. M., Osuji, O. K., & Nnodim, P. (2008). Corporate social responsibility in supply chains of global brands: a boundaryless responsibility? Clarification, exceptions and implications. Journal of Business Ethics, 81(1), 223–234.
Arnold, D. G., & Bowie, N. E. (2003). Sweatshops and respect for persons. Business Ethics Quarterly, 13(2), 221–242.
Barton, D. (2011). Capitalism for the long term. Harvard Business Review, 89(3), 85–91.
Bassiry, G. R., & Jones, M. (1993). Adam Smith and the ethics of contemporary capitalism. Journal of Business Ethics, 12, 621–627.
Bower, J. L., Leonard, H. B., & Paine, L. S. (2011). Global capitalism at risk — what are you doing about it? Harvard Business Review, 13(2), 105–112.
Carroll, A. B. (1991). The pyramid of corporate social responsibility: toward the moral management of organizational stakeholders. Business Horizons, 34(4), 39–48.
de Lange, D. E., Busch, T., & Delgado-Ceballos, J. (2012). Sustaining sustainability in organizations. Journal of Business Ethics, 110, 151–156.
Gladwin, T., Kennelly, J. J., & Krause, T. (1995). Shifting paradigms for sustainable development: implications for management theory and research. Academy of Management Review, 20(4), 874–907.
Hart, S. L. (1995). A natural resource-based view of the firm. Academy of Management Review, 20(4), 986–1014.
Hung, L. H. (2011). Efficiency and compassion? Exploring the challenges that new generations of workers present to managers in the wake of suicides amongst the employees of Foxconn Technology Group. Human Resources Management, Institute of Labor and Social Studies, Polish Academy of Sciences Labor and Social Policy Scientific Committee, 6, 57–65.
Kazeroony, H. H. (2013, February). The Project of Capitalism and the Social Relationship
Meyer, C., & Kirby, J. (2012). Runaway capitalism. Harvard Business Review, 90(1/2), 66–75.
Porter, M. E., & Kramer, M. R. (2006). Strategy & society: the link between competitive advantage and corporate social responsibility. Harvard Business Review, 84(12), 78–92.
Porter, M. E., & Kramer, M. R. (2011). Creating shared value, Harvard Business Review, 89(1/2), 62–77.
Porter, M. E., & van der Linde, C. (1995). Green and competitive: ending the stalemate. Harvard Business Review, 73(5), 120–134.
Snyder, J. (2010). Exploitation and sweatshop labor: perspectives and issues. Business Ethics Quarterly, 20(2), 187–213.
Srivastava, S. K. (2007). Green supply-chain management: a state-of-the art literature review. International Journal of Management Reviews, 9(1), 53–80.
Wilson, J. Q. (1989). Adam Smith on business ethics. California Management Review, 32(1), 59–72.
Wolf, J. (2011). Sustainable supply chain management integration: a qualitative analysis of the German manufacturing industry. Journal of Business Ethics, 102, 221–235.
Wong, C. S. (2011). The wrong directions of business and management models: implications for Chinese management scholars’ [in Chinese]. Organization and Management, Taiwan Academy of Management, 4(1), 163–174.
Author information
Authors and Affiliations
Editor information
Editors and Affiliations
Copyright information
© 2014 Li-Hwa Hung
About this chapter
Cite this chapter
Hung, LH. (2014). How Firms Balance Social Responsibility with Surplus Value from Labor Inputs. In: Kazeroony, H., Stachowicz-Stanusch, A. (eds) Capitalism and the Social Relationship. Palgrave Macmillan, London. https://doi.org/10.1057/9781137325709_3
Download citation
DOI: https://doi.org/10.1057/9781137325709_3
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-45949-0
Online ISBN: 978-1-137-32570-9
eBook Packages: Palgrave Business & Management CollectionBusiness and Management (R0)