Two fundamental business ethics issues that repeatedly surface in the academic literature relate to business's role in the development of public policy [Suarez, S. L.: 2000, Does Business Learn? (The University of Michigan Press, Ann Arbor, MI); Roberts, R. W. and D. D. Bobek: 2004, Accounting, Organizations and Society 29(5-6), 565-590] and its role in responsibly managing the natural environment [Newton, L.: 2005, Business Ethics and the Natural Environment (Blackwell Publishing, Oxford)]. When studied together, researchers often examine if, and how, (...) corporations influence environmental policy decisions. Drawing from literatures on corporate political activity, corporate social and environmental performance, and corporate environmental disclosure, we develop and empirically examine two research questions concerning the relations between corporate political expenditures, environmental performance, and environmental disclosure. The questions are: (1) Do corporations that are poorer environmental performers spend more on political activities than their better-performing counterparts? (2) Is there an association between corporations' spending on political activities and the extent of their financial report environmental disclosures? We investigated these questions through analyses of data we gathered on a sample consisting of 119 U.S. environmentally sensitive firms for the 2001-2002 election cycle. After controlling for firm size and specific industry effects, our tests reveal a significant, inverse relationship between firm environmental performance and political spending. This is consistent with the notion that U.S. firms with relatively poorer environmental performance records engage more intensely in corporate political activities as part of their overall strategic management of their relationship with the state. In addition, a significant and positive association between the amount of political spending and the extent of environmental disclosure suggests that environmental disclosure and political spending are both proactive, complementary tactics to strategically manage public policy pressure. If corporations' strategies are intentionally designed to unreasonably limit their environmental responsibilities or to misrepresent firm environmental performance, then we argue that these activities reflect a significant lapse in ethical conduct. (shrink)

There is a lack of research about the political strategies used by firms in emerging countries, mainly because the literature often assumes that Western-oriented corporate political activity has universal application. Drawing on resource-dependency logics, we explore why and how firms orchestrate CPA in the institutionally challenging context of Nigeria. Our findings show that firms deploy four context-fitting but ethically suspect political strategies: affective, financial, pseudo-attribution and kinship strategies. We leverage this understanding to contribute to CPA in (...) emerging countries by arguing that corporate political strategies are shaped by the reciprocity and duality of dependency relationships between firms and politicians, and also by advancing that these strategies reflect institutional weaknesses and unique industry-level opportunities. Importantly, we shed light on the muttered dark side of CPA. We develop a CPA framework and discuss the research, practical and policy implications of our findings. (shrink)

The importance of overt levers of business political influence, notably campaign donations and lobbying, has been overemphasized. Using executive branch policymaking during the Obama administration as a case study, this article shows that those paths of influence are often not the most important. It places special emphasis on the structural power that large banks and corporations wield by virtue of their control over the flow of capital and the consequent effects on employment levels, credit availability, prices, and tax collection. (...) At times, business disinvestment, combined with demands for government policy reforms, constitutes a conscious “capital strike,” which has the potential to shape political appointments, legislation, and policy implementation. At other times, the threat of disinvestment, the hint of a drop in “business confidence,” or rhetoric about job creation is sufficient to achieve those objectives. The present analysis has important implications for our understanding of political power and social change in capitalist economies. (shrink)

The question that this paper sets out to answer is: How do political processes within the firm structure corporate political strategy? In answering this question thepaper starts to address the research problem of the congruence between processes of consensus building and conflict resolution within the firm and on the other hand corporate attempts to influence political processes taking place outside the firm. The paper argues that power-dependence relations between firm-internal stakeholders are an explanatory factor (...) in examining empirical variation in corporate political behavior. (shrink)

This paper investigates how country-specific political institutions affect patterns of business political behavior. In particular, we focus on how firms developpolitical resources, what kinds of strategies they use and how the resources and strategies affect a firm’s performance in various country environments. Drawing on the institutional perspective, we posit that political institutional arrangements in a country are a central determinant for business political behavior. Survey data from two countries (the Netherlands and Finland) are utilized in order (...) to test our hypotheses. (shrink)

U.S. corporations have long tried to enact a favorable business environment via political activities such as lobbying and campaign contributions. This particular strategy is receiving increased attention due to the recent Supreme Court decision, Citizens United v. Federal Election Commission, which establishes that corporations have the same rights with regard to political activities as individuals. In this work, we examine the nature of corporate political activity and the need for accountability; define transparency in the context (...) of corporate political activity; and examine the antecedents for corporate political disclosure. We then test our model on the S&P 100 using an index of corporate political disclosure that we developed. We find that opportunities to participate in political activities, dependence on government contracts and prior disclosure on other topics such as the environment lead to more disclosure. The intensity of the regulatory environment appears to have no influence. (shrink)

Scholarship on corporate political activity (CPA) has remained largely silent on the substance of information strategies that firms utilize to influence policymakers. To address this deficiency, our study is situated in the European Union (EU), where political scientists have noted information strategies to be central to achieving lobbying success; the EU also provides a context of global norm-setting activities, especially with its General Data Protection Regulation (GDPR). Aided by recent advances in the field of unsupervised machine learning, (...) we performed a structural topic model analysis of the entire set of lobby documents submitted during two GDPR consultations, which were obtained via a so-called Freedom of Information request. Our analysis of the substance of information strategies reveals that the two policy phases constitute “shifting battlegrounds,” where firms first seek to influence what is included and excluded in the legislation, after which they engage the more specific interests of other stakeholders. Our main theoretical contribution concerns the identification of two distinct information strategies. Furthermore, we point at the need for more attention for institutional procedures and for the role of other stakeholders’ lobbying activities in CPA research. (shrink)

This paper addresses the relationship between corporate political activities (CPA) and a firm’s customer orientation (CO) from a strategy perspective. Focussing on the potential negative implications of CPA, the paper argues that CPA over time may result in path-dependency for the focal strategic system and lead to a low level of customer orientation and strategic rigidity to readdress an appropriate level of CO.

This conceptual article draws on structuration theory and social identity theory to isolate firm-internal institutionalization processes as antecedents and drivers of corporate political strategizing. Path dependencies in corporate routines and actors' knowledgeability about these path dependencies are singled out as primary factors structuring strategic decision making within the firm. The concepts of path dependency and knowledgeability, respectively, refer to the institutional and cognitive dimension of corporate political strategizing. These two dimensions come together in actors' identities. (...) Identities on their turn shape managers' recognition of policy issues and the interpretation of issue salience relative to corporate interests. Thus, the article argues that institutional features of competitive environments precipitate in processes of identity building and preference formation and are reproduced through organizational routines and practices within the firm. (shrink)

Variance theories have dominated corporate political action (CPA) research because the pioneering works in the 1970s and 1980s. Process theories offer an entirely new perspective on CPA research, as they are able to explain processes across a number of levels of analysis and link actions to contexts. We add to the existing CPA literature by offering a process model that can be useful especially in historical and evolutionary analysis. Our model depicts CPA as a complex system in which (...) a firm’s actions are affected by various factors across organizational, industry, and institutional levels of analysis. As political actions also influence these factors, the process is in essence systemic and path dependent. Our model supplements existing research by offering the possibility to explain the long-term consequences of CPA vis-à-vis wider societal changes and by promoting longitudinal research strategies. In addition to the theoretical model, we provide a historical analysis of the evolution of the Finnish paper and pulp industry to illustrate the applicability of the framework. (shrink)

The aim of this paper is to provide some insights for a normative theory of corporate political activities. Such a theory aims to provide theoretical tools to investigate the legitimacy of corporate political involvement and allows us to determine which political activities and relations with government regulators are appropriate or inappropriate, permissible or impermissible, obligatory or forbidden for corporations. After having explored what I call the “normative presumption of legitimacy” of CPAs, this paper identifies three (...) different plausible strategies to criticize and object to corporate political involvement: the “egalitarian” strategy, the “corporate citizenship” strategy, and the “market failures” strategy. It constitutes an attempt to develop the market failures approach to reflect on CPAs. My main claim is that within such an account, the idea that corporations have a license to operate considerably limits their right to engage in political activities. (shrink)

Business Ethics: A European Review, EarlyView.

A proposed global theory of corporate political activity (CPA) analyzes the complex resource allocation choices involved in integrating politically relevant cross-border and multilevel strategies for multinational enterprises (MNEs). Cross-border CPA is “horizontal” allocation of scarce corporate resources by MNEs to politically relevant strategies across multiple countries. Globalization reshapes CPA among multiple levels functioning below, at, and above national governments. Subnational communities and international policy regimes, supranational quasigovernmental institutions, and supranational nongovernmental organizations all affect businesses. Multilevel CPA is (...) “vertical” allocation of scarce corporate resources to politically relevant strategies among subnational, national, regional, and global levels. Furthermore, in each country and at each level, business-relevant policies are determined in multiple policy arenas, shaped by widely differing nonmarket institutions, corruption conditions, and stakeholder demands for corporate social responsibility. Multiple policy “arena” allocation adds to the analytical complexity of the CPA strategizing problem. Implications for scholarship and practice are presented. (shrink)

In this study, I seek to contribute to the existing literature on corporate political activity by providing insights into how the content of corporate political strategy evolves over time within a single firm. A basic premise of the study is that the evolution of corporate political strategy is embedded within a broader social context that influences its pace and direction. Empirical evidence is based on a historical single case study of a large (...) scale Finnish industrial conglomerate, Tampella Ltd., covering the time period of 1944–1991. The results of the study show how the contextual forces shape the patterns of corporate political strategy. Moreover, an evolutionary model of intra-firm political strategies is introduced. (shrink)

This article explores the substitution and complementary effects between political and social strategies on firm performance in the context of an emerging market (EM). Using in‐depth, historical case‐study approach, the article investigates how companies integrate political and social resources in this market. Corporate performance includes traditional measures, such as accounting performance and nonfinancial measures like the ease of doing business. The study finds that social strategies are stronger enablers of firm long‐term performance than political strategies. The (...) latter have a short‐term impact on performance, but their success over time is limited. The main drawback of reliance on political resources in EMs is the lack of political stability, fragmented polity, and weak political coalitions. We identify rather limited evidence of firms using these two strategies as complements. Thus, we suggest that firms should employ both these strategies in the EM. (shrink)

This paper develops a measurement tool for corporate political activity (CPA) by applying a resource-based view with a focus on political resources. In addition, path-dependence theory is used to examine inertial consequences of the trade-off between corporate stakeholder relationships, namely, between politics and customers. The following research questions are addressed: How can CPA be measured? And can CPA lead to strategic inertia over time? The empirical analysis is based on survey data primarily collected at 218 major (...) German companies. The results give new insights into today’s CPAs within the German market. Using explorative factor analysis, four components are identified: activities, function, public affairs, and strategy. (shrink)

Corporate sustainability reports are supposed to provide a complete and balanced picture of corporate sustainability performance. They are, however, usually voluntary and thus prone to interpretation and even greenwashing tendencies. To overcome this problem, the Global Reporting Initiative (GRI) provides standardized reporting guidelines challenging companies to report positive and negative aspects of an organization’s sustainability performance. However, the reporting of “negative aspects” in particular can endanger corporate legitimacy if perceived by the stakeholders as not being in line (...) with societal norms and values. Starting from the theoretical lenses of economics-based disclosure theories and socio-political theories of disclosure, the focus of this study therefore was to analyze the communicative legitimation strategies companies use to report “negative aspects,” i.e., negative ecological and social impact caused by corporate activity. Using qualitative content analysis of GRI-oriented sustainability reports from companies listed on the US Dow Jones Industrial Average Index and on the German DAX Index, we identified six legitimation strategies. We discuss these strategies regarding to symbolic and substantial management of legitimacy. We show that symbolic legitimation strategies aiming at modifying the perception of legitimizing stakeholders dominate in the reports at hand. Such persuasion, however, does not meet the requirement of impartiality as postulated by the GRI guidelines. Building upon this conclusion we propose a concise characterization of “negative aspects” and develop a GRI-compliant schema of reporting about them. In doing so, we offer a way to improve the overall “balance” of sustainability reporting contributing to a true and fair view in sustainability disclosure. (shrink)

While support for corporate political activity (CPA) is well echoed in the literature, little has been done to empirically examine its ethicality. Moreover, existing ethical CPA frameworks assume normative and rational leanings that are insufficient to provide a comprehensive account of CPA ethicality. Utilizing the Ghanaian context, adopting a multiple case study design involving 28 Directors from 22 firms, and employing a grounded theory approach, I explore how the ethicality of CPA is determined in weak institutional environments. The (...) findings reveal that business executives evaluate ethics at three levels (i.e. context, organizational and strategy) using three principles (i.e. utilitarianism, justice and institutions). Leveraging this knowledge, I present an eclectic framework that bridges the long-standing gap between normative ethical prescriptions and lived ethical realities. In doing so, I move away from abstraction to give “voice” to the actors involved in CPA. I also present a model that shows how the ethical judgement process is influenced by managerial intuition and interactive personal and organizational experiences. This article has important theoretical and practical implications for ethical business-government relations in developing countries. (shrink)

Mergers and acquisitions can involve a significant review by antitrust authorities; however, neither the business strategy nor the corporate political strategy literature has fully explored the antitrust dimensions of merger activity. This article considers the ability of corporate political activity to influence antitrust policy by setting out some determinants of antitrust-review outcomes. The analysis consists of two main contentions: (a) Antitrust institutional independence plays a fundamental role in determining the effectiveness of corporate (...) class='Hi'>political activity, and (b) domestic mergers with international competitive effects are more likely to receive positive antitrust reviews. (shrink)

This article argues that whether and how a firm chooses to adopt Corporate Social Responsibility (CSR) initiatives is conditional in part upon the domestic political institutional structures present in its home market. It demonstrates that economic globalization has increased the pressure applied to companies to develop CSR policies that might help overcome specific governance gaps associated with the globalization phenomenon. Drawing upon an examination of domestic institutions and overall political structure, it argues that the political conditions (...) and expectations present in a company’s home market will condition whether a firm might pursue CSR activity. For home markets, it is posited that perceived electoral salience will be filtered through government type and ideology, and state/societal structures will influence if and how firms will use CSR. Specific arguments are developed from these categorizations. The article concludes with a discussion of how researchers might further explore links between CSR, domestic political structures, and corporate political activity. (shrink)

Although an important feature of firms’ corporate social responsibility, the strategic pressures behind firms’ corporate philanthropy are not well researched or understood. This research note argues that firms’ CP and firms’ corporate political activity may share common strategic antecedents; forces in firms’ political environment may shape both CP and CPA. Using S&P 500 data in a longitudinal analysis, the authors find evidence suggesting that industry-level political uncertainty increases firm propensity for engaging in both CP (...) and CPA, above and beyond the propensity to engage in either as a stand-alone strategy. The authors use this preliminary evidence to explore political marketplace contingencies for the relationship between CP and CPA. CSR literature indicates that CP can benefit firms by creating and enhancing their relational wealth and institutional legitimacy. Such benefits may also serve firm interactions with government policy makers—a dynamic largely ignored until recently. The authors’ findings may indicate that, due to its institutional signaling ability and impact on firms’ reputations, CP may allow firms to differentiate themselves or stand out from others when faced with political uncertainty, and that these outcomes should be considered when firms engage in CP. (shrink)

This paper demonstrates the political perspective of corporate social responsibility disclosures and, drawing on Weber’s notion of traditionalism, seeks to explain what motivates companies to make such disclosures in a traditional setting. Annual reports of 23 banking companies in Bangladesh are analysed over the period 2009–2012. This is supplemented by a review of documentary evidence on the political and social activities of corporations and reports published in national and international newspapers. We found that, in the banking companies (...) over the period of study, apparently neutral, corporate, philanthropic activities disclosed and promoted in CSR reports are inextricably linked to powerful leaders’ personal projects and the ruling party’s agendas. We have demonstrated elements of traditional societies, including personal loyalty and the public display of loyalty, the master–servant relationship, and obedience to personal rather than formal authority, provide an understanding of why banks have employed politically charged CSR disclosure strategies. The paper contributes to disclosure studies where political motivations of corporate disclosure rarely discussed. The paper extends the debate on political CSR by demonstrating that the role of family and familial values at the organisational and national levels may be much more important when it comes to CSR disclosure and activities. (shrink)

To explore the motivations underpinning corporate social responsibility (CSR) decisions in China, a country characterized by extensive government intervention, this paper investigates whether building a good relationship with the government is a political incentive that is driving firms to conduct CSR by examining the effects of political connections on the latter. Our results indicate that politically connected firms exhibit better CSR. However, the effect is considerably more significant for firms with existing political relationships. Additionally, findings show (...) that the effect is more prominent in firms for which political connections are more valuable, namely, non‐state‐owned enterprises, small firms, and firms operating in less market‐oriented cities, indicating that CSR can serve as a differentiation strategy to compete against other bidders. Dividing CSR activities into economic, environmental and social aspects, we find that the social‐based activities are more likely to be driven by political motivations. By categorizing CSR and political connections, this paper not only expands the scope of political CSR and renders the generated results that have been mixed together more distinguishable, but also provides a more precise understanding of the fundamental drivers of CSR in China from the perspective of resource exchange. (shrink)

Pharmaceutical companies developed Covid-19 vaccines in record time. However, it soon became apparent that global access to the vaccines was inequitable. Through a qualitative inquiry as the pandemic unfolded (to mid-2021), we provide an in-depth analysis of why companies engaged with the Covid-19 Vaccines Global Access Facility (COVAX), identifying the internal (to the company) and external factors that facilitated or impeded engagement. While all producers of the World Health Organization (WHO)-approved vaccines engaged with COVAX, our analysis highlights the differential levels (...) of COVAX engagement and identifies contractual obligations, opportunities and company strategy, and reputational pressures as key explanatory factors. We discuss our empirical findings relative to the literature on political corporate social responsibility (PCSR). Accordingly, we question whether pharmaceutical companies lived up to their responsibilities as corporate citizens and conclude that they failed to fulfill the implied responsibility of combating inequitable vaccine distribution. We conclude with implications of our research for practice, in relation to the challenges of global access to Covid-19 vaccines and for access to medicines more generally. (shrink)

Corporate political action committees (PACs) play a prominent role in the political strategies of U.S. organizations, and the ability of firms to influence political outcomes is highly controversial. To the extent that PACs enable groups of firms to pursue corporate agendas at the expense of the social good, they promote socially suboptimal outcomes. This study examines the impact of corporate PACs on entry restriction in manufacturing industries and finds a negative relationship between corporate (...) PAC spending and the entry of new firms. Results suggest that PACs are used to shape industry structure to the economic benefit of incumbents. (shrink)

This paper provides an overview of corporate social responsibility in Brazil, a country of vast regional and economic differences. Despite abundant natural resources and centers of advanced technology, large numbers of Brazilians live in poverty. Historical factors, which to some extent explain Brazil’s social and economic inequalities – a long period of colonialism, followed by populist reform, repressive military measures, foreign debt, unfair trade agreements, and problems of corruption – have persisted into the current period of democratic reform, marked (...) by economic and political trends toward democratization and corporate social responsibility. This paper considers the civic and business organizations that have been developing strategies to encourage social responsibility and government policies aimed at alleviating poverty. Despite progress, the complexity of the Brazilian context presents challenges for social and economic equality. (shrink)

The Global Reporting Initiative (GRI) has successfully become institutionalized as the preeminent global framework for voluntary corporate environmental and social reporting. Its success can be attributed to the “institutional entrepreneurs” who analyzed the reporting field and deployed discursive, material, and organizational strategies to change it. GRI has, however, fallen short of the aspirations of its founders to use disclosure to empower nongovernmental organizations (NGOs). The authors argue that its trajectory reflects the power relations between members of the field, their (...) strategic choices and compromises, their ability to mobilize alliances and resources, and constraints imposed by the broader institutions of financial and capital markets. The authors draw three notable implications from this study. First, institutional theory needs to pay more attention to economic structures, strategies, and resources. Second, institutional entrepreneurship by relatively weak societal groups such as NGOs is inherently constrained by the structural power of wider institutions and by the compromises required to initiate change. Third, the strategies of NGOs represent a form of power capable of shifting, if not transforming, the field of corporate governance. (shrink)

Multinational corporations (MNCs) are the frequent target of nongovern-mental organizations (NGOs) in their advocacy efforts. In this article, the author examines NGO advocacy as it occurs in the NGO network and, using insights from the political science literature in conjunction with the resourcebased view of the firm, posits that NGO intranetwork conflict will result in a skewing of corporate social responsibility practices by the multinational corporation toward the MNC's developed country stakeholders. This skewing is a product of the (...) asymmetric accountability of NGOs (upwardly accountable to donors, downwardly accountable to recipients). Developing country government and MNC strategies in the face of such skewing are discussed. (shrink)

This article explores the international dimensions of multinationals' corporate political activities, focusing on an international issue—climate change—being implemented differently in a range of countries. Analyzing data from Financial Times Global 500 firms, it examines the influence on types and process of multinationals' political strategies, reckoning with institutional contexts and issue saliency. Findings show that the type of political activities can be characterized as an information strategy to influence policy makers toward market-based solutions, not so much (...) withholding action on emission reduction. Moreover, multinationals pursue self-regulation, targeting a broad range of political actors. The process of political strategy is mostly one of collective action. International differences particularly surface in the type of political actors aimed at, with U.S. and Australian firms focusing more on nongovernment actors (voluntary programs) than European and Japanese firms. Influencing home-country (not host-country) governments is the main component of international political strategy on climate change. (shrink)

This study explores the impact of publicly traded founding family firms (FFFs) on their propensity for corporate political activity (CPA) and their choice of political approaches. Based on the behavior and characteristics of publicly traded FFFs, the author expected a positive association between FFFs and corporate political activity and a preference for relational, or long-term, over transactional, or short-term, corporate political activity. It was found that publicly traded FFFs are more likely to engage (...) in CPA only when the firm's founder is in an executive position. Furthermore, publicly traded FFFs show a preference for relational versus transactional corporate political activity. These findings are examined in light of FFF and corporate political strategy literatures. (shrink)

The state is a key driver of corporate social responsibility across developed and developing countries. But the existing research provides comparatively little knowledge about: (1) how companies strategically manage the relationship with the state through corporate social responsibility (CSR); (2) how this strategy takes shape under the influence of political institutions. Understanding these questions captures a realistic picture of how a company applies CSR to interacting with the state, particularly in countries where the state relationship is (...) critical to the business operation. This article draws on political legitimacy as a useful concept to directly address both strategic and politically embedded natures of CSR. This work extends the currently under-specified political implication of the strategic view of CSR and provides fresh insights to the political legitimacy research by specifying a typology of CSR-based legitimacy strategies and its contextual variation. China and Russia are the focal settings. A qualitative analysis of business—state interaction cases is done using a database that contains the majority of CSR reports published in Chinese and Russian as the end of 2009. As a result, this paper identifies four qualitatively different types of CSR-based political legitimacy strategies and reveals how the adoption of these strategies differs across Chinese companies, Russian companies, and multinational corporations. (shrink)

The literature on antecedents of corporate social responsibility strategies of firms has been predominately content driven. Informed by the managerial sense-making process perspective, we develop a contingency theoretical framework explaining how political ideology of managers affects the choice of CSR strategy for their firms through their CSR mindset. We also explain to what extent the outcome of this process is shaped by the firm’s internal institutional arrangements and external factors impacting on the firm. We develop and test (...) several hypotheses using data collected from 129 Chinese managers. The results show that managers with a stronger socialist ideology are likely to develop a mindset favouring CSR, which induces the adoption of a proactive CSR strategy. The CSR mindset mediates the link between socialist ideology and CSR strategy. The strength of the relationship between the CSR mindset and the choice of CSR strategy is moderated by customer response to CSR, industry competition, the role of government, and CSR-related managerial incentives. (shrink)

The purpose of this article is to extend from the business and society research focus on corporate political strategy and to factor this emphasis into business strategy thinking. The approach taken is to incorporate business and society concepts into a model that parallels Michael Porter's well-known Five Forces Model of business strategy. The applicability of the parallel model for practitioners and academics is then illustrated by using the model to analyze the television violence issue.

Authors critical of corporate power focus almost exclusively on one solution: bringing it under democratic control. However important this is, there are at least two other options, which are rarely discussed: reducing powerful firms’ size and influence, or accepting corporate power as a necessary evil. This article provides a comparative perspective for evaluating all three options. It argues that the trade-offs we face in responding to corporate power have a trilemmatic structure. The pure strategies of accepting powerful (...) firms, breaking them up, or rendering them more accountable are each incompatible with one of three important values: power balance, economies of scale, and minimizing agency costs, respectively. While the latter two concepts are purely economic and efficiency-based, the value of power balance can be grounded in a variety of reasons. Different normative interpretations of power balance are discussed, along with their implications for policy choices within the trilemma. (shrink)

Hegel holds that members of a society can only be fully free and autonomous if they enjoy political representation. Hegel grants political representation to the landed aristocracy and to members of corporations. Causal day laborers fall outside both of these groups. Consequently, they lack political representation in Hegel’s state; hence they lack the political resources for full freedom and autonomy. This is a serious problem, but not so serious as Hegel’s marxist critics maintain. I propose two (...) solutions based on Hegel’s institutional principles. First, day laborers typically work in the same industry, and often in the same factory. Once that regularity is established, such labor is no longer casual and it merits recognition through labor contracts and (ultimately) through corporate membership. Second, those workers who remain casual laborers deserve special attention from a government-sponsored agency which organizes and regularizes their training and job placement, and which represents their interests in Hegel’s Estates Assembly. I further suggest that Keynes’s public works strategy for moderating unemployment fits perfectly into Hegel’s institutional framework, and I show (contra Ilting) that Hegel’s exposition of the Crown is properly ordered. The Monarch is the organizational apex of Hegel’s government, but the Estates Assembly culminates Hegel’s program for achieving the political autonomy of individuals. (shrink)

In recent years, economic life has become increasingly politicized: now, every company has a ‘philosophy’, promising its customers some ethical surplus in return for buying their products; consumers shop for change; workers engage in individualized forms of employee activism such as whistleblowing; and governments contribute to the re-configuration of the economic sphere as a site of political contestation by reminding corporate and private economic actors of their duty to ‘do their bit’. The Politics of Economic Life addresses this (...) trend by exploring the ways in which practices of consumption, work, production, and entrepreneurship are imbued with political strategy and ideology, and assesses the potentials and perils of the politicization of economic activity for democracy in the 21st century. (shrink)

This article addresses a theoretical gap in the literature by highlighting the significance of nonbargaining nonmarket strategies of firms. Relying on neo-statist political theory, we propose a theoretical model that hypothesizes a reliance on nonbargaining nonmarket strategies in situations marked by historically and situationally conditioned weakness of societal forces relevant to a firm (including the firm itself) as well as when relevant state institutions display high degrees of professional, structural, and ideological bureaucratic insularity. We survey 165 managers (each representing (...) a separate firm) from 14 countries in Eastern Europe and Central Asia about the strategic importance of the nonmarket strategic initiatives. Our novel survey instrument captures a broader range of nonmarket strategic initiatives than previous empirical research has examined. The survey results provide preliminary support for our model, although the findings suggest the need for more research in different regional contexts. (shrink)

The modern corporation has come to be regarded as a dynamic force for subverting traditional norms in repressive societies. However, the role that MNCs can play in transforming the socio-political landscapes of most host countries is largely circumscribed by the actions that host governments can take. In the case of South Africa, the vast disparities and inequalities created and maintained by many years ofapartheid rule are limiting factors to the trickle-down effect that would normally take place. The paper argues (...) that under the existing circumstances, the corporate withdrawal strategy proved to be the most effective catalytic role MNCs could play in the transformation of SA society. (shrink)

Recent discussions on corporate citizenship highlight the new political role of corporations in society by arguing that corporations increasingly act as quasi-governmental actors and take on what hitherto had originally been governmental tasks. By examining political and sociological citizenship theories, the authors show that such a corporate engagement can be explained by a changing conception of corporate citizens from corporate bourgeois to corporate citoyen. As an intermediate actor in society, the corporate citoyen (...) assumes co-responsibilities for social and civic affairs and actively collaborates with fellow citizens beyond governmental regulation. This change raises the question of how such corporate civic engagement can be aligned with public policy regulations and how corporate activities can be integrated into the democratic regime. To clarify the mode of CC contributions to society, the authors will apply the tenet of subsidiarity as a governing principle which allows for specifying corporations’ tasks as intermediate actors in society. By referring to the renewed European Union strategy for Corporate Social Responsibility, the authors show how such a subsidiary corporate-governmental task-sharing can be organized. (shrink)

In this paper we integrate the concept of institutional entrepreneurship to the literature on corporate political activity by examining how the attempts of private actors to influence a public policy domain is fundamentally constrained by the prevailing institutional logics in the field. By examining the role of financial actor, i.e, investment bankers in the commercialization process of Finnish water sector, we show how the political strategies of these actors evolved during the process. Moreover, we identify several factors (...) explaining why the financial actors were able to adapt to the institutional logics of local government actors. (shrink)

Corporations, which in the past have been hesitant to contribute to conversations regarding political and social issues, are increasingly speaking out on current issues such as race, sexual orientation, gender, immigration, and environmental issues. Despite this trend, limited academic research has focused on how corporate sociopolitical activism (CSA) efforts impact firm value. In addition, extant studies have not fully identified the extent to which the firm and their message influence the outcomes of this approach. The current study explores (...) how sociopolitical stances communicated on Twitter affect firms’ stock prices. Results from an event study of 260 incidents of CSA show that CSA efforts decrease firm value by an average of 0.22%, indicating that wading into social or political issues is a risky strategy. However, further analysis highlights the importance of clearly articulating stances on social issues that align with the firm’s core values. (shrink)

Although stockholders may benefit from information regarding the frequently substantial charitable and political contributions of the corporations they own, US corporations are typically not required to disclose any information about such payments in annual financial statements or information submitted periodically to regulatory agencies. This lack of transparency is confounded by disclosure requirements of private foundations, which a corporation may choose to establish for the purposes of administering charitable giving for the corporation. The resulting disclosure fog engendered by extant regulations (...) may be confusing to those corporation owners who would like to know what corporation contributions are being made to charities and politicians. This article enumerates the magnitude of the charitable and political gifts of 40 of the most generous public corporations in the USA, the current disclosure requirements for public companies, the role of foundations, rationales for withholding relevant information from owners, and ethically questionable strategies that corporations may use to manage those disclosures for their benefit. (shrink)

Corporate Social Responsibility (CSR) is a concept suggesting that good business is about more than maximizing profit. In order to achieve social legitimacy a corporation must pay attention to a complex web of values and relations, and different CSR strategies and policies can be viewed as ways to manage this complexity. The corporate legitimacy matrix introduced in this article represents the strive for social legitimacy as a balancing act along three lines: a) The sustainability dimension: Balancing economic, social (...) and environmental considerations, b) The stakeholder dimension: Balancing considerations of stakeholders at the local, national and global level, and c) The trust dimension: Balancing rational argumentation, credibility and emotional appeal. This article explores these three aspects of corporate legitimacy and how they are related. It is intended as a theoretical contribution towards a better understanding of the relationship between CSR and corporate legitimacy, as well as a practical tool to support the analysis of actual corporate legitimacy challenges. (shrink)

Scholars studying the global diffusion of “corporate social responsibility” (CSR) practices and the associated rise of privatized forms of economic governance have tended to shift attention away from the role of corporations in motivating these processes to the one played by nonbusiness forces seeking social control of corporations. We bring corporate power back in by turning the spotlight to the agency of business classes, the business entities capable of pursuing transcorporate, societal-level, macro-political endeavors. Building on a comparative (...) investigation of two of the world’s earliest mass CSR adoptions, in postwar Venezuela and Britain, we argue that business classes responding to anti-capitalist challenges were the original diffusers of CSR practices and, interrelatedly, promoters of CSR-based, privatized forms of regulation and governance. Organized by peak business associations, the purpose of these “business-class CSR mobilizations” was to weaken the state in its relation to corporations and increase the control of business over social trends. We discuss the contribution of our historical perspective and analytical approach to a more complete and balanced picture of the global rise of CSR in late capitalism. (shrink)

In the era of the digital economy, the important issue for enterprises is how to achieve optimal performance by balancing the development of digital technology and undertaking digital responsibility. Based on optimal distinctiveness theory, we explore how enterprises balance the tension between political strategy and competitive strategy from the perspective of corporate digital responsibility to achieve optimal firm performance. Observing data such as annual reports, patent application information, and operating conditions of Chinese A-share listed companies from (...) 2009 to 2021 reveals the impact of corporate digital responsibility, substantive and symbolic digital technology on firm performance. The research results show that substantive digital technology innovation is superior to symbolic digital technology innovation in promoting firm performance. Mechanism analysis shows that symbolic digital technology innovation satisfies the firm's political strategy and positively impacts firm performance through management empowerment. In contrast, substantive digital technology innovation satisfies the firm's competitive strategy and improves performance by empowering the workforce. Further analysis find that corporate digital responsibility positively moderates the impact of substantive digital technology innovation on corporate performance and negatively moderates the relationship between symbolic digital technology innovation and corporate performance. This study incorporates digital technology innovation and digital responsibility into a unified research framework, which provides a new interpretative path for improving firm performance and contributes important practical references for firms to achieve a “win-win” situation that improves competitiveness and social value. (shrink)

In recent years India has been moving further in the direction of adopting an Anglo-American model of corporate governance. This decision, the result more of international economic and political pressures than public debate, in effect represents a new development strategy for the world's most populous democracy. In light of this situation, it is important to ask two basic questions: 1) why has the Anglo-American model of corporate governance been adopted? and; 2) can it be justified? This (...) paper addresses the first of these questions by distinguish and examining three historical models of governance in India: 1) the managing agency model in the colonial period; 2) the business house model that emerged after independence, and; 3) the Anglo-American model which has recently been adopted (and is still emerging). The second question is approached through an examination of the "development impact" of the new model, as indicated by such measures as growth, employment and respect for shareholder rights. (shrink)

The proliferation of multistakeholder initiatives (MSIs) over the past years has sparked an intense debate on the political role of corporations in the governance of global business conduct. To gain a better understanding of corporate political behavior in multistakeholder governance, this article investigates how firms construct a political identity when participating in MSIs. Based on an in-depth case study of the Accord on Fire and Building Safety in Bangladesh—an MSI established after the collapse of the Rana (...) Plaza garment factory complex in 2013 to improve working conditions in the Bangladeshi garment industry—we introduce the construct of a political CSR (corporate social responsibility) identity (PCSRI) and explore how firms construct their PCSRIs in MSIs. Employing a qualitative, inductive theory-building method, we analyze interviews and archival data to develop a framework that elucidates how companies construct their PCSRIs within a continuum ranging from conservative to progressive. We show that constructing a PCSRI involves enacting specific, yet interrelated, political strategies that are themselves shaped by several forces over time. This article contributes to the literature by providing a political perspective on organizational identity construction that extends the emerging integrative perspective in political corporate social responsibility (PCSR) research. We suggest that MSIs should be conceptualized as inherently political governance mechanisms that are driven by multidirectional and dynamic political processes of identity construction. Our study shows that corporate political engagement in MSIs is a more nuanced and complex phenomenon than presently theorized. (shrink)

Conventional management strategies for anti-corporate anger involve its negative construal as an inappropriate irrationality in need of containment. An alternative account is offered in which such anger comprises a healthy and health-sustaining component of care-based moral agency directed not only toward the affiliative advancement of connection among community members, but also toward the (political) resistance to violation, injustice, and carelessness through which disconnection from responsive community relationships occurs. The role of anger in care-based moral agency is demonstrated through (...) discussion of the classic case of environmental and human health crisis at Love Canal, New York. (shrink)

Extant research on political corporate social responsibility (PCSR) has not yet addressed how the populist turn impacts PCSR theory and practice. This conceptual article analyzes how populism influences PCSR across a range of political environments. We draw on signaling and screening theories to develop a conceptual model that advances PCSR literature by proposing an information-centric approach. We highlight the necessity of high-quality information as an enabling condition for effective PCSR-related decision-making, and our model explains how the depreciation (...) of information transparency under populism impacts PCSR strategy. We thus contribute to PCSR literature with a new information-based theorization by showing how PCSR depends on the political environment and by enhancing our understanding of the role of the state in the development of PCSR strategies. (shrink)