Andreas Georg Scherer

The New Political Role of Business in a Globalized World – A Review of a New Perspective on CSR and its Implications for the Firm, Governance, and Democracy

Scholars in management and economics widely share the assumption that business firms focus on profits only, while it is the task of the state system to provide public goods. In this view business firms are conceived of as economic actors, and governments and their state agencies are considered the only political actors. We suggest that, under the conditions of globalization, the strict division of labour between private business and nation-state governance does not hold any more. Many business firms have started to assume social and political responsibilities that go beyond legal requirements and fill the regulatory vacuum in global governance. Our review of the literature shows that there are a growing number of publications from various disciplines that propose a politicized concept of corporate social responsibility. We consider the implications of this new perspective for theorizing about the business firm, governance, and democracy.

Managing Legitimacy in Complex and Heterogeneous Environments: Sustainable Development in a Globalized World

The sustainability problems of the production, distribution, and consumption of goods and services increasingly challenges the legitimacy of corporations. Corporate legitimacy, however, is vital to the survival of corporations in competitive environments. The literature distinguishes three strategies that corporations commonly employ to address legitimacy problems: adapt to external expectations, try to manipulate the perception of their stakeholders or engage in a discourse with those who question their legitimacy. This paper develops a theoretical framework for the application of different legitimacy strategies and suggests that corporations facing sustainability problems have to be able to activate all three legitimacy strategies, despite their inherent incompatibilities.

Handbook of research on global corporate citizenship

The Handbook of Research on Global Corporate Citizenship identifies and fosters key interdisciplinary research on corporate citizenship and provides a framework for further academic debate on corporate responsibility in a global society.

Pluralism and Incommensurability in Strategic Management and Organization Theory: A Problem in Search of a Solution

Research in management has become more and more differentiated and complex. In organization theory and strategic management one can find different approaches, concepts, and theories, which are not only diverse, but often give contradictory advice. Therefore, it has become difficult for both the researcher and the practitioner to find appropriate answers to theoretical and practical problems. This is especially true in a situation of incommensurability where no objective frame of reference to evalute competing perspectives exists. Although in organization theory this problem has been discussed for over 20 years, no acceptable solution has been found. Instead, as recent paradigm discussions have shown, the differences have become even greater. The purpose of this special issue is to review the current state of the pluralism discussion in organization theory and to find new ways to handle the problems of pluralism, diversity, and incommensurability. In this paper I will give an introduction to the special issue. I will explain the concept of incommensurability and will review the paradigm discussion in strategic management and organization theory. In the second part of the paper I will give an overview of the contributions to this special issue.

The Philosophical Foundations of Knowledge Management: Editors' Introduction

Our work on this Special Issue began with a showcase symposium on the philosophical foundations of knowledge management (KM) at the AoM 2004 Meeting and was continued through KM tracks at the EURAM 2005 and EGOS 2005 Conferences. Our hope was to corral the variety of approaches in the KM literature and expose solid underpinnings against which the fields development might be gauged. We were unclear whether these would be axiomatic principles that defined the field or a set of professionally accepted KM practices. The call for papers went out in Fall 2004 and was published in the November 2004 issue ofOrganization. In our call we asked for advances to the discussion rather than mere reiteration of the already appreciated. Our authors and reviewers made great efforts and we learned much from their submissions, both those included and those turned away, and from the many reviews. However, we found deep disagreements, both among our reviewers about the submissions—and among everyone about the topic area generally. Clearly KM frustrates readers, authors, and reviewers alike; hence the temptation to dismiss it as yet another management fad, as many do. But there is an undeniable enthusiasm for KM among managers and academics, so our first thought was ‘To what problem is KM the answer?’. Framing the question well often takes one towards the answer—so if we puzzle out KMs problematics we may find ourselves moving towards the underpinnings we are looking for.

The Business Firm as a Political Actor A New Theory of the Firm for a Globalized World

The state governance system seems to be incapable to address sufficiently global public goods problems or to regulate global business so that the public interest is served. At the same time, international governmental organizations are unable to fill the governance gap while nongovernmental organizations (NGOs) criticize the behavior of business firms along their supply chains. Therefore, business firms are confronted with increasing social and environmental demands and are requested to take responsibility for issues of public concern. As a response, some business firms engage with corporate social responsibility (CSR) projects and directly contribute to the production of public goods. These developments challenge the received theory of the firm and its strict separation of public and private domains. Corporations become political actors. In this introductory essay, the guest editors first elaborate on the concept of politics and describe the challenges that lead to the new political role of global business firms and, second, will introduce the articles in this special issue and briefly comment on their contribution.

Organization Studies as Applied Science: The Generation and Use of Academic Knowledge about Organizations Introduction to the Special Issue:

The relationship between theory and practice has been discussed in the social sciences for generations. Academics from management and organization studies regularly lament the divide between theory and practice. They regret the insufficient academic knowledge of managerial problems and their solutions, and criticize the scholarly production of theories that are not relevant for organizational practice (Hambrick 1994). Despite the prevalence of this topic in academic discourse, we do not know much about what kind of academic knowledge would be useful to practice, how it would be produced and how the transfer of knowledge between theory and practice actually works. In short, we do not know how we can make academic work more relevant for practice or even whether this would be desirable. In this introduction to the Special Issue, we apply philosophical, theoretical and empirical perspectives to examine the challenges of studying the generation and use of academic knowledge. We then briefly describe the contribution of the seven papers that were selected for this Special Issue. Finally, we discuss issues that still need to be addressed, and make some proposals for future avenues of research.

Democratizing Corporate Governance Compensating for the Democratic Deficit of Corporate Political Activity and Corporate Citizenship

This article addresses the democratic deficit that emerges when private corporations engage in public policy, either by providing citizenship rights and global public goods (corporate citizenship) or by influencing the political system and lobbying for their economic interests (strategic corporate political activities). This democratic deficit is significant, especially when multinational corporations operate in locations where national governance mechanisms are weak or even fail, where the rule of law is absent and there is a lack of democratic control. This deficit may lead to a decline in the social acceptance of the business firm and its corporate political activities and, thus, to a loss of corporate legitimacy. Under these conditions corporations may compensate for the emerging democratic deficit and reestablish their legitimacy by internalizing democratic mechanisms within their organizations, in particular in their corporate governance structures and procedures. The authors analyze the available corporate governance models with the help of a typology and discuss the possible contributions of a new form of democratic corporate governance.

Clandestine Organizations, al Qaeda, and the Paradox of (In)Visibility: A Response to Stohl and Stohl

In a recent article published in this journal, Stohl and Stohl (2011) examine the phenomenon of clandestine organizations from a communication-centered perspective. The authors draw primarily on the work of the ‘Montreal School’ of organizational communication, which stresses the constitutive role of communication for organizations. In this response, we argue that the Stohls’ paper does not make full use of the paradigmatic turn that the Montreal School offers to organization studies. In our view, the authors overemphasize the role of communication among organizational members in the constitution of organizations. In contrast, we argue that organizations can also be ‘talked into existence’ by the communicative acts of third parties (e.g., the media), a view that is consistent with the Montreal School’s work. Moreover, drawing on the Stohls’ central example of the terrorist organization al Qaeda, we suggest that the attribute ‘clandestine’ does not capture the essence of that organization because it is characterized by extreme invisibility of its governance structures and by extreme visibility of its terrorist activities. We believe it is the reversion of the relation between invisibility and visibility that differentiates al Qaeda from legitimate organizations such as private businesses and ensures its perpetuation against all odds.

Walking and Talking Corporate Social Responsibility: Implications of Firm Size and Organizational Cost

In this paper we address two interrelated research gaps in the Corporate Social Responsibility (CSR) literature. The first results from a lack of understanding of different patterns of CSR engagement with respect to CSR talk (impression management and the creation of symbolic images and documentation) and CSR walk (substantive implementation of CSR policies, structures and procedures). Related to this, the second gap concerns limited knowledge about the influence of firm size on CSR engagement. We develop a conceptual model that explains differences in CSR talk versus walk based on organizational cost and firm size. This allows us to theorize the antecedents of what we call the large firm implementation gap (large firms tend to focus on communicating CSR symbolically but do less to implement it into their core structures and procedures) and vice versa the small firm communication gap (less active communication and more emphasis on implementation). Our model expands a new theoretical understanding of CSR engagement based on as yet underemphasized firm-level antecedents of CSR, and opens up several new avenues for future, and in particular comparative, research.