Proceedings of the International Association for Business and Society

Volume 4, 1993

Proceedings of the Fourth Annual Meeting

Ronald K. Mitchell
Pages 597-608

Where Efficiency Fails
Ethical Implications of Governance in the International Setting

Current theories of ethical corporate behavior presume regulation of potential employer opportunism primarily through the influence of external stakeholders. This paper proposes the enfranchisement of internal constituencies to accomplish internal ethical governance. Coactivational theory is called upon to support ownership-based enfranchisement through use of a corporate equity plan. A case example is presented.