The Integrative Justice Model as a Framework

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The Integrative Justice Model
as a
Framework for Sustainable Development
Nicholas Santos, S.J.
Gene R. Laczniak
Presented by:
Tom Bausch
Marquette University, Milwaukee, USA
June 2009
IAJBS – 15th World Forum, XLRI – Jamshedpur, India
Sustainable Development

Brundtland Report of the World Commission on Environment and
Development (1987)


Copenhagen Declaration at the World Summit on Social Development
(1995)


development that meets the needs of the present without compromising the ability of
future generations to meet their own needs
economic development, social development, and environmental protection are
interdependent and mutually reinforcing components of sustainable development
Johannesburg Declaration at the World Summit on Sustainable
Development (2002)

poverty eradication, changing consumption and production patterns, and protecting and
managing the natural resource base for economic and social development are
overarching objectives of and essential requirements for sustainable development
The Integrative Justice Model (IJM)

Normative ethical framework for marketing to impoverished market
segments

Constructed using the normative theory building process in
philosophy proposed by John Bishop (2000)

Integrates the notion of “fairness” or “equity” in marketing
transactions as developed in different strands of thought in moral
philosophy and management theory

Uniqueness of the IJM: well-grounded, logical, consistent, and
systematic model
Frameworks covered
1.
Virtue Ethics
8.
Stakeholder Theory
2.
Ross’ Theory of Duty
9.
Triple Bottom Line Approach
3.
Habermas’ Discourse Theory
10.
Sustainability
4.
Kant’s Categorical Imperative
11.
Socially Responsible Investing
5.
Rawlsian Theory
12.
Service-Dominant Logic of
6.
Classical Utilitarianism
7.
Sen’s Capability Approach
Marketing
13.
Catholic Social Teaching
Key Elements of the IJM
1.
Authentic engagement with consumers, particularly impoverished
ones, with non-exploitative intent
2.
Co-creation of value with customers, especially those who are
impoverished or disadvantaged
3.
Investment in future consumption
4.
Interest representation of all stakeholders, particularly impoverished
customers
5.
Focus on long-term profit management rather than short-term profit
maximization
IJM elements – Theoretical support
IJM element
Theoretical derivation
Authentic engagement with customers with nonexploitative intent
•Virtue Ethics
•Kant’s categorical imperative
•Ross’ theory of duties
•CST: human dignity, common good, solidarity
Co-creation of value with customers
•Kant’s categorical imperative
•Habermas’ Discourse Theory
•CST: human dignity, subsidiarity
Investment in future consumption
•Sen’s capability approach
•Sustainability Perspective
•CST: human dignity, common good
Interest representation of all stakeholders
•Kant’s categorical imperative
•Rawls’ difference principle
•Stakeholder Theory
•CST: common good, subsidiarity
Long-term profit management
•Triple Bottom Line
•Socially Responsible Investing
•CST: common good
Sample derivation of IJM element:
“Authentic engagement with non-exploitative intent”
•
•
•
•
•
2nd formulation of Kant’s categorical imperative decrees, “never treat a person as
means to an end merely”.
The “difference principle” of John Rawls implies that actions, policies and
procedures not make those least well off, worse off.
One of Ross’ “prima facie” duties is beneficence which suggests rendering aid to those
in need whenever reasonable.
Stakeholder theory recognizes the claims of all those affected by the organization
not to bear the cost of negative externalities caused by the actions of the firm.
The 3BL measurement of company performance includes “social sustainability “ as
part of its business model; sustainable exchange is typically fair to both parties.
All of these frameworks are suggestive of treating consumers, especially
vulnerable ones, with fairness and without exploitation.
The IJM and sustained profitability
5th element of the IJM – long term profit management
 Taking the “long view” in the oversight of financial rewards
– integral part of the CSR movement
 Amartya Sen & John Rawls – moral underpinnings and
justification of long-term approach especially regarding
poor consumers
 Foregoing extraction of profits in the short run can lead to
beneficial exchange with impoverished segments far into
the future

The IJM and sustained societies






3rd element of IJM – investment in future consumption
Vast number of people who live in poverty with little or no access to basic
healthcare, nutrition, sanitation, education etc. – indicative of an unsustainable
society
Investment in future consumption – more than merely proposing a budget for
increasing consumption
Ties in with Sen’s idea of expanding the capabilities and freedoms of people
Attempt at procuring a better participation of the impoverished in the market
system (as producers, innovators, employees, distributors, customers etc.)
Case examples:
 Toyota University (India)
 Investec (South Africa)
The IJM and sustained ecosystems




3rd element of the IJM – investment in future consumption without
endangering the environment
One of the fears of expanded marketing to impoverished market
segments – dire consequences of increase in overall consumption on
the planet
Major assumption made is that present production patterns will also
be used in future to support increased consumption
This need not be the case


Biotechnology – more sustainable agricultural practices
Disruptive innovations – enable more people to have access to the fruits of
development while helping to preserve the environment
The IJM and sustainable labor


Impoverished markets – ability to purchase on an ongoing basis only possible with
the continued presence of viable employment opportunities
Two common entry-level economic transactions in impoverished markets






Micro loans
Fair trade production
Micro loans – helps create a labor driven “business activity” that will help repay the
loan and provide basis for future consumption
Fair trade production – intended to establish an economic climate that allows for
continuation of business activity in a manner that assures future disposable income
for these workers
Exploitation of workers diminishes likelihood of future consumption
Sustainable wages contributory to future economic engagement by the poor
(“investment in future consumption” may commonly be implemented by
“investment in labor”)
Pedagogical implications of the IJM


Key elements of the IJM complement core elements of conventional models of
economic growth with a long-term sustainability perspective
Significant pedagogical challenge in Jesuit Business Schools: bridging the chasm
between conventional models of economic growth and sustainability


In most Jesuit Business Schools – compartmentalization of courses that are exclusively
focused on profit generation and those dealing with social responsibility, business ethics
or the environment
In postulating a normative ideal, the IJM implicitly informs the distinctiveness of
courses taught at Jesuit Business Schools


Consistent with the IJM all courses taught at Jesuit Business Schools could promote an
authentic engagement with customers, co-creation of value, investment in future
consumption, interest representation of all stakeholders, and a focus on long-term profit
management
Precise pragmatics of implementation and setting forth of actionable guidelines – tasks
that Jesuit Business School faculty can best attend to
Thank you
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