Moral+free+spaces

Moral free space is freedom of individuals to form or join communities and to act jointly to establish moral rules applicable to the members of the community.

Moral free space is a key concept in Integrative Social Contract theory. The founders of this theory [|Thomas Donaldson] and [|Thomas W. Dunfee] define moral free space as ”the area bouded by [|hypernorms] in which communities develop ethical norms representing a collective viewpoint concerning right behaviour. Recognition of the existence of community moral free space is an important foundation of Integrative Social Contracts Theory (ISCT). The term ”moral free space” implies that it is right and proper for communities to self-define significant aspects of their business morality.”

**ISCT and Moral Free spaces**
** Integrative Social Contract Theory ** (ISCT) is an approach to navigating cross-national cultural differences. Two key concepts in this theory are the notions of hypernorms and //moral free space//. These two concepts are depicted as a series of concentric circles representing the core norms held by corporations, industries, or economic cultures. //Moral free space// is norms that are inconsistent with at least some other legitimate norms existing in other economic cultures. These norms could be in mild tension with hypernorms, though they may be compatible with them.

The five main components of Integrative Social Contract Theory are 1) All communities are guided by fundamental moral perceptions called hypernorms 2) Individual communities generate authentic norms that are bounded by local context and must be acceptable to the majority of the community. 3) These authentic norms become legitimate norms when they are in line with hypernorms 4) These legitimate norms of different communities might be conflicting. But there is a set of “priority rules” that can resolve these conflicts 5) ISCT is not made for measuring how ethical decisions or norms are but it is a aware that some conflicts cannot be resolved.

Therefore after applying this system without success the decision maker is left to a moral free space where he/she has to make a decision based on some moral reasoning system of his own.

“Moral free space is the area bounded by hypernorms in which communities develop ethical norms representing a collective viewpoint concerning right behavior. Recognition of the existence of community moral free space is an important foundation of ISCT. Moral free space is necessary in ISCT because there are areas which simply are not prescribed and that require difficult judgments and tradeoffs among competing authentic norms or between two relevant hypernorms. Areas outside the moral free space are illegitimate because they are inconsistent with hypernorms ."

Moral Free Space and CSR
The theory of ISCT joins classical concepts of social contracting and normative and empirical approaches to business ethics.The theory of ISCT and moral free spaces offer a theoretical approach or framework of ehtical guidance for managers. In this regard, it is very useful in relation to CSR and tax issues which in many cases require ethical deliberation and decision-making from managers.It is defined as pluralistic business ethics as it avoids both cultural relativism and universalism by taking into account different communities with their culturally specific norms and standards, and at the same time suggesting that there exist some transcultural, universal norms which are superior to local norms.