5. The public (including non-governmental organisations): legitimacy and pressure
Political action shapes and enforces – or fails to shape and enforce – the state’s regulatory framework for economic activity. Politicians must justify their actions to an enlightened public of responsible citizens. In republican economic ethics, the (unrestricted) critical public plays a role in legitimising the political order of the community. Many non-governmental organisations contribute their expertise in a particular field to the legislative process.
At the same time, the public is a vigilant observer of corporate behaviour. This applies particularly to large multinational companies. If companies seriously breach ethical standards, they may find themselves facing criticism and intense public pressure. Their social reputation suffers, and there may be a risk of public confrontation in the form of an organised boycott in the sales market. Because companies do not enjoy any protection of established rights in a market economy, they must themselves strive to create the conditions necessary to legitimise their own existence (licence to operate) through normative management of their environmental relations.
(International) non-governmental organisations often draw attention to social, environmental and ethical abuses. Through organised campaigns, they help shape public opinion and mobilise the public. The greater their credibility, the greater the prospect of broad support.
However, there is always a risk of the public being manipulated.
Didactic Principles
- Market
- Government framework
- Businesses & Associations
- Economic citizens
- The public and NGOs