Justice and Corporate Governance: New Insights from Rawlsian Social Contract and Sen’s Capabilities Approach

By considering what we identify as a problem inherent in the ‘nature of the firm’—the risk of abuse of authority—we propound the conception of a social contract theory of the firm which is truly Rawlsian in its inspiration. Hence, we link the social contract theory of the firm (justice at firm’s level) with the general theory of justice (justice at society’s level). Through this path, we enter the debate about whether firms can be part of Rawlsian theory of justice showing that corporate governance principles enter the “basic structure.” Finally, we concur with Sen’s aim to broaden the realm of social justice beyond what he calls the ‘transcendental institutional perfectionism’ of Rawls’ theory. We maintain the contractarian approach to justice but introduce Sen’s capability concept as an element of the constitutional and post-constitutional contract model of institutions with special reference to corporate governance. Accordingly, rights over primary goods and capabilities are (constitutionally) granted by the basic institutions of society, but many capabilities have to be turned into the functionings of many stakeholders through the operation of firms understood as post-constitutional institutional domains. The constitutional contract on the distribution of primary goods and capabilities should then shape the principles of corporate governance so that at post-constitutional level anyone may achieve her/his functionings in the corporate domain by exercising such capabilities. In the absence of such a condition, post-constitutional contracts would distort the process that descends from constitutional rights and capabilities toward social outcomes

A Capability Approach to talent management

This paper takes a fresh and radical look at organisational talent management strategies. It offers a critique of some of the prevalent assumptions underpinning certain talent management practices, in particular those fuelled by the narratives of scarcity and metaphors of war. We argue that talent management programmes based on these assumptions ignore important social and ethical dimensions, to the detriment of both organizations and individuals. We offer instead a set of principles proceeding from and informed by Sen’s Capability Approach. Based on the idea of freedoms not resources, the Approach circumvents discourses of scarcity and restores vital social and ethical considerations to ideas about talent management. We also emphasise its versatility and sensitivity to the particular circumstances of individual organisations such that corporate leaders and human resource practitioners might use the principles for a number of practical purposes