After the Tiananmen Square massacre, a vigorous international debate erupted, not only about human rights in China, but also about the role of multinational firms. Should corporations do business in China at all? Should corporations take a stand on such issues? Revelations about serious and pervasive human rights violations in Chinese factories raised even more questions about the clash of profits and principles in China.
Michael Santoro investigates these and other dilemmas, exploring the democratic values firms impart to their employees and the values firms often compromise in pursuit of profits. His interviews with foreign business executives, Chinese employees of foreign firms, human rights advocates, and foreign consular officials provide a range of perspectives. His examination of business responsibility for human rights in China also serves as a unique framework for assessing the broader social trends--both positive and negative--arising from globalization.
Santoro discusses the implications of business activities for U.S. foreign policy and provides practical management advice for business executives operating in China and for those considering doing so. Surprisingly, he finds that President Clinton’s program of "comprehensive engagement," which has drawn severe criticism, may in fact create a positive human rights "spin-off." Santoro’s "fair-share" theory is a unique and thoughtful effort to draw the line between what moral principles do and do not require of businesses operating in China.
Reviews
"Lines have been drawn in the sand, with choices reduced to stark either-ors: human rights or expanded commerce, worker protection or globalization. But to anyone looking for reasoned discussion instead of rhetorical posturing, Michael A. Santoro's 'Profits and Principles' is a fine place to start. His solidly grounded analysis deserves a wide audience."--Barry Gewen. New York Times Book Review. May 21, 2000
"This timely study, which combines rigorous economic analysis with sharp moral reasoning, spells out what can and cannot be expected. . . . As sensitive to the bottom line as he is to human rights, Santoro also has useful things to say about the issues that vex CEOs dealing with China. . . . he has produced a book of interest not just to the concerned citizen but also to those engaged in business in China or contemplating becoming involved there."--Lucien W. Pye, Foreign Affairs, Sept./Oct. 2000.
"What are the moral obligations of corporate executives with regard to human rights? Assuming that one can settle on a definition of human rights and agree that such obligations exist, then how can such obligations be balanced abainst executives' responsibility to corporate shareholders to maximize profits? Santoro (Rutgers Univ.) has produced a provocative work in business ethics that attempts to answer, or at least provide the basis for an answer, to these questions...[T]he issues Santoro covers are of increasing importance in global economic policy arrangement, and deserve attention."--Choice. November, 2000
"Proposes a framework for understanding the extent and limits of corporate moral responsibility for human rights, focusing primarily on the case of U.S. business in China...Constructs a fair-share theory of moral responsibility for human rights...Applies the fair-share theory of human rights to the sweatshop problem and to the issue of corporate responsibility for government repression of political and religious dissidents."--Journal of Economic Literature (Volume 38, no. 4)
"The book's common-sense, pragmatic tone serves well to open up a complex and important topic for several communities of readers - policy makers, business people, and the nongovenrmental organization community. Even if few settle for his conclusions, he will have helped by setting out some terms for future debate."--Andrew J. Nathan, Columbia University. Political Science Quarterly, Winter 2000-01
"What is the human rights responsibility of multinational corporations (MNCs) operating in China? What is the moral obligation of businesses operating in a country where human rights violations are serious and pervasive? In his book, Michael Santoro takes a bold step in contemplating a theory that delineates MNCs' human rights responsibility."--Donna E. Chung, University of Oxford. Journal of East Asian Studies 2002.
"This book merits much credit for its even-handed, comprehensive approach. Santoro's theoretical investigation is matched and buttressed by his empirical analysis. While an urgent moral call, the book also considers what is and is not a realistic appeal. Finally, while focusing on MNCs, the author also delineates the larger moral web that connects all of human society - CEOs, workers, and consumers alike." --Donna E. Chung, University of Oxford. Journal of East Asian Studies, 2002.
"Santaro has made a first effort to address an intractable and increasingly salient cause ofhuman rights violations in developing countries, including China - inhumane business practices - and on this account alon ehis work is to be appreciated." --Peter Harris, The China Journal, July 2002
“Profits and Principles is a pioneer book. It addresses a timely and controversial issue, one that has not been treated in a sufficiently thorough and comprehensive fashion until now. Michael Santoro makes an important contribution to clarifying the ongoing debate in the United States on China, human rights, and multinationals.”--Georges Enderle, Arthur and Mary O’Neil Professor of International Business Ethics, University of Notre Dame, Indiana
