Morality as a factor of production: Moral commitments as strategic risk management

Through an analysis of Alfred Krupp's 19th-century social welfare program, this paper employs an ordonomic perspective on how morality can be employed as a factor of production. The paper's main argument is that corporate social responsibility (CSR) can be conceptualized as a corporate strategy of moral commitments to manage the relationship- based risks that arise out of social dilemma situations between the company and its stakeholders. Focusing primarily on relationship-based social risks that emerge from antagonistic cooperation, this paper also develops an ordonomic contribution to corporate risk management.