Abstract

Moral repair is an important way for firms to heal moral relationships with stakeholders and restore their legitimacy following a transgression. The concept is rooted in recognition theory, which is often used to develop normative perspectives, but recognition theory can also be used to develop a view of moral repair as premised on negotiation between offender and victim(s), which involves social construction of the transgression and the appropriate amends. From this perspective, the practice of moral repair is inherently problematic, especially towards multiple victims. Moral repair’s paradoxical conceptualization leads to unclarity regarding the extent of its normativity, which begs the question how offending firms should approach moral repair. Addressing this question, we refine its conceptualization, distinguishing between procedural and substantive levels of practice. Procedural moral repair reflects normative thinking, because firms can work to maximize the likelihood of success of their exchanges with victims, while substantive moral repair evinces socio-constructivism, since the appeal of amends depends on victim interpretation. Our two-level approach to moral repair promotes conceptual clarity, contributes to a more systematic “roadmap” for firms engaging in moral repair, and paves the way for more integrative analysis of the relationship between the making of amends and moral outcomes.

Full Text
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