A Rawlsian Rule for Corporate Governance

Abstract Business ethics can be regarded as a field dealing with corporate self-regulation it relates to the treatment of stakeholders. However, concern for stakeholders need not take corporate-centric perspective, shown by recent efforts (especially Singer in Bus Ethics Q 25(1):65–92, 2015) situate conduct within Rawls’ political theory. Although Rawls was largely mute on subject himself, his theory has implications business and governance more specifically. Given an understanding “Rawlsian society” whole—where corporations associations are part—this paper addresses how Rawlsian perspective would safeguard against harms society. We argue that society primarily regulate through exogenous constraints form legislation. To extent is concerned endogenous regarding , adopt assume instead society-centric impose legislation benefit citizens . In context liberalism, normative concerns accounted system background justice. clear departure from (Bus 2015, J Rev 6(3):11–17, 2018a), we further develop our argument propose Rawls' interpreted providing rule governance. The rule—which imposed exogenously good society—states: After choosing constraint mechanism (exogenous vs. endogenous) best promotes Liberty Principle, choose control regime (shareholder stakeholder) maximizes economic efficiency.