This paper analyses the relationships between corporate community involvement activities, the organizational structures within which they are managed, the firm's industry and evolving stakeholder attitudes and preferences in a sample of 148 U.K. based firms who have demonstrated a clear desire to be socially responsible. The research highlights significant associations between the allocation of responsibility for community involvement within the firm, its industry and the extent of its community involvement activities. Consistent with the view that managerial structures may (...) play a significant role in the implementation of community initiatives, the results identify significant variations in community involvement policies across alternative organizational forms. However, important similarities in corporate community policies across alternative structures are also shown to exist suggesting that corporate community involvement activities may be influenced by the preferences of societal stakeholders. (shrink)

In this paper I examine how the constituent elements of a firm's organizational structure affect the ethical behavior of workers. The formal features of organizations I examine are the compensation practices, performance and evaluation systems, and decision-making assignments. I argue that the formal organizational structure, which is distinguished from corporate culture, is necessary, though not sufficient, in solving ethical problems within firms. At best the formal structure should not undermine the ethical actions of workers. (...) When combined with a strong culture, however, the organizational structure may be sufficient in promoting ethical conduct. While helpful, ethics training and corporate codes are neither necessary nor sufficient in promoting ethical behavior within firms. (shrink)

This study examines the determinants of corporate social responsibility (CSR) and its implications on firms’ investment policy, organizational strategy, and performance. First, we find that firms with better performance, higher R&D intensity, better financial health, and firms in new economy industries are more likely to engage in CSR activities, while riskier firms are less likely to do so. We also find U-shaped relation between firm size and CSR, indicating that either very small or very large firms exhibit high (...) levels of CSR strengths and concerns. Next, we find that firms’ CSR strengths relate favorably with their investments, organizational strategy, and performance, whereas CSR concerns and firm attributes are by and large negatively related. Using a 2SLS procedure, we verify that the CSR–performance relation is robust to corrections for endogeneity through reverse causation and/or biases introduced by time varying omitted variables. Finally, we find that the CSR–firm attributes relation is strengthened when the CEO’s incentives are below the sample median, suggesting that CSR participation is especially important when monetary incentives are lower than benchmark levels. (shrink)

This teaching case is based on the multinational group IKEA, which designs and sells ready-to-assemble furniture. The case is a useful classroom exercise to identify the link between business decisions and their tax implications. The case questions challenge students to consider the differences in tax planning, tax avoidance, tax mitigation and tax evasion. The facts provide a timely and relevant setting to discuss global dimensions of taxation and corporate social responsibility from an ethical perspective.

This study investigated the factorial validity of the 58-item Corporate Ethical Virtues scale :923–947, 2008). The major aim was to test the invariance of the factor structure across different organizational samples. The CEV scale was designed to measure eight corporate virtues: clarity, congruency of supervisors, congruency of senior management, feasibility, supportability, transparency, discussability, and sanctionability. The data consisted of four organizational samples that are operated in the private and public sector. The results of confirmatory factor (...) analyses supported the hypothesized eight-factor structure, as well as its alternative second-order factor structure, where high correlations between the first-order factors were explained by a general CEV factor. These factor structures remained the same across samples, lending strong support for the group invariance assumption of the scale. Thus, the 58-item CEV scale was found to be a valid tool for measuring the aspect of ethical organizational culture in different organizations, and its use can be recommended for future research. (shrink)

Unlike previous studies that examine the direct effect of employees’ perceived corporate social responsibility (CSR) on affective organizational commitment (AOC), this article examines a mediated link through organizational trust and organizational identification. Social exchange and social identity theory provide the foundation for predictions that the primary outcomes of CSR initiatives are organizational trust and organizational identification, which in turn affect AOC. The test of the research model relies on data collected from 378 employees of (...) local and multinational companies in South Asia, as well as structural equation modeling to test the postulated relationships. Both organizational trust and organizational identification fully mediate the CSR–AOC link. However, the identification mechanism is significantly stronger than the trust mechanism in terms of building AOC from CSR. Out of four CSR components, CSR toward employees is the strongest predictor of employees’ trust, identification, and AOC, followed by CSR toward community, whereas CSR toward the environment has no effect. Finally, CSR toward community and employees are more associated with social exchange, whereas CSR toward consumers relates more to the social identity process. (shrink)

Research on corporate philanthropy typically focuses on organization-external pressures and aggregated donation behavior. Hence, our understanding of the organization-internal structures that determine whether a given organization will respond philanthropically to a specific human need remains underdeveloped. We explicate an attention-based framework in which specific dimensions of organization-level attention focus interact to predict philanthropic responses to an emergent human need. Exploring the response of Fortune Global 500 firms to the 2004 South Asian tsunami, we find that management attention focused on (...) people inside the organization interacts with both attention for places and attention for practices to predict the likelihood of charitable donations. Our research thus extends beyond the prevailing institutional perspective by highlighting the role of attention focus in corporate responsiveness to emergent societal issues. (shrink)

Various organizational factors reported in the hitherto literature affect individual behaviour within a company. In this paper, we conduct a literature review thereof, and propose a notion of the “Organizational Moral Structure” defined as a comprehensive framework of interrelated organizational factors that condition, incite or influence good or bad moral behaviour of individuals within the organization. Drawing from a wide bibliographical review and our own reflection on recent business scandals, we identify seven constituents of the “ (...) class='Hi'>Organizational Moral Structure”: 1) leader’s values and character, 2) vision and exercise of power, 3) corporate control systems, 4) internal network of influence, 5) organizational culture, 6) internal and competitive pressures, and 7) external influences. The “Organizational Moral Structure” is proposed as a reflective framework for humanistic management and as an invitation to further research in this field. We provide recommendations on how a manager oriented towards humanistic management can use the OMS to secure and promote well-being and dignity of company’s employees. (shrink)

We use institutional-related theories and a unique natural experiment that enables an exogenous test of the influence of controlling shareholders on managerial accountability to corporate fraud. In China, prior to the Split Share Structure Reform, state shareholders held restricted shares that could not be traded. This restriction mitigated state-owned enterprise controlling shareholders’ incentives to monitor managers. The data examined show the SSSR strengthens incentives of state-owned enterprise controlling shareholders to replace fraudulent management. Our findings support the view (...) that economic incentives are important to promote corporate governance and deter fraud. (shrink)

Abstract:This paper contends that rationality is more properly evaluated as a property of an organization’s relationships with its stakeholders than of the organization itself. We predicate our approach on the observation that stakeholders can hold goals quite distinct from those of owners and top managers, and these too can be rationally pursued. We build upon stakeholder theory and Weber’s classic distinction betweenwertrationalitatandzweckrationalitat, adding to them the “new institutionalist” concept of the organization field (1983, 1991). Stakeholders employ a variety of direct (...) and indirect mechanisms to rationalize relations with the firm. We discuss four: internal subunits, legislated stakeholder participation, legislated access to information, and direct stakeholder activism. These developments are blurring the distinction between the environment and the organization by importing the values and goals of external stakeholders into the internal organization. They are also precipitating a more structured set of relationships among the actors who comprise the field. To the extent that thezweckrationalitatvalues of managers and owners as well as thewertrationalitatconcerns of stakeholders are met, the firm is more rational. (shrink)

A key issue in the business ethics field is the design of effective measures for assessing the ethical culture of organizations. The Corporate Ethical Virtues Model (CEV), developed by Kaptein in 2008, is an instrument for measuring ethical culture, and has been applied, adapted and validated in different contexts. In 2013, DeBode, Armenakis, Field and Walker developed the CEV–S, a shortened version of the original scale. Both the CEV and CEV–S assess eight dimensions based on corporate ethical virtues: (...) clarity, congruency of supervisors, congruency of senior management, feasibility, supportability, transparency, discussability and sanctionability. The objective of this study is to present a Spanish version of the CEV–S and its validation process. The scale was applied to two samples of 114 and 193 Colombian employees from two companies operating in the services sector. The confirmatory factor analyses revealed a good fit for the eight-factor structure of the Spanish CEV–S and the statistical tests applied showed good levels of reliability and validity for this scale. The adequate psychometric properties shown by the Spanish CEV–S may support its use in future research to measure organizational ethical culture in Spanish-speaking settings. (shrink)

Summary The purpose of this study was to illustrate and analyze the organizational change the Swedish voluntary sports club IF Björklöven went through in connection with the corporation formation of its representative team. The study was made with institutional theory as a theoretical frame of reference. Particularly important for the shaping of the study was a theoretical model by Greenwood and Hinings. The data was collected using semi-structured interviews with seven respondents representing different parts of the organization. The results (...) show that the change process was driven and enabled for the most part by the offer of SEK 22.5 million from an external financier. The restructuring has brought about a change in the way Björklöven thinks about the outcome, purpose, structure and goals of the organization, now that the organization is moving towards a more market-oriented way of organizing. (shrink)

Research on corporate sustainability has started to acknowledge the role of temporality in creating more sustainable organizations. Yet, these advances tend to treat firms as monolithic and we have little understanding of how different temporal patterns throughout an organization shape perceptions of and actions toward sustainability. Building on studies highlighting how the temporal structures of work shape employee engagement with different organizational processes and issues, we seek to answer: How does the temporality of work practices structure perceptions (...) of corporate sustainability throughout the firm? Using data from an ethnography of a small European sustainable bank, we provide an account of the variety of ways in which employees in different departments perceive the bank and how they engage with sustainability. We then go on to show how the temporal structures of work practices within different departments help explain some divergence in perceptions of sustainability. Our study highlights the variegation of temporal structures in organizational processes of meaning-making and its role for a better understanding of the efforts to make corporations more sustainable. (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)

Modern corporations have been widely accused of promoting values of managerial autonomy that can result in managerial waste and opportunistic behaviour, leading organizational theorists to suggest the adoption of alternative organizational forms that should normatively and structurally limit such autonomy. However, this mixed-methods study of an alternative organizational form — income trusts (1995—2005)— finds that income trusts were also characterized by excessive managerial autonomy. Managers strategically used the income trust form in discretionary ways such as by providing (...) little information on important decisions to external parties, limiting investors' right to oppose managerial actions and retaining firm earnings to a great extent. Thus, the article concludes that alternative organizational forms do not necessarily promote an ethical business culture since they are unable to overcome deeply institutionalized values of managerial autonomy. (shrink)

Management scholars have paid close attention to the construct of organizational or corporate reputation, particularly in the applied business ethics and corporate social responsibility fields. Extant research demonstrates that CR is one of the key mediators between CSR and important organizational outcomes, which ultimately improve organizational performance. Yet, hitherto the research focused on CR construct has been plagued by multiple definitions, conflicting conceptualizations, and unclear operationalizations. The purpose of this article is to provide theoretical ground (...) for positioning of CR as an assessment construct that is modeled as a second-order factor affecting individual first-order dimensions, and to provide methodological and empirical support toward such conceptualization. We assert that intangible, socially complex, and causally ambiguous CR can be accurately estimated through its individual measurable dimensions. Using survey data from Peru, we empirically test the hypothesized second-order reflective model within a hierarchy of nested and non-nested models, and compare its model fit and predictive power with alternative conceptualizations. Modeling CR as a second-order reflective construct relies on a set of theoretical propositions and yields several methodological advantages, including strong conceptual interpretability and parsimony when tested within a nomological context. We explicitly demonstrate positive organizational outcomes of CR: customer trust, corporate identification, in-role behavior, and extra-role behavior. Then, we demonstrate that the shorter scales of CR can be used as a good proxy for the full construct measure. The paper concludes by highlighting theoretical insights, and methodological and managerial implications of the findings. (shrink)

Organizational integrity is a key concept with and through which a company can assume its responsibility for ethical and societal issues. It is a basic premise for sustainable corporate success, as ethical risks ultimately become economic risks for a company. Recent research shows the potential of integrity‐based governance models to reduce corporate risks and to improve business performance. However, companies are not yet able to assess nor evaluate their level of organizational integrity in a sound and (...) systematic way. We aim to develop a theoretical model as a basis for the measurement of organizational integrity by conceptualizing the construct and sizing the theoretical model's scope. We suggest that the theoretical model follows a holistic approach and involves three types of dimensions: prerequisite dimensions, independent dimensions, and dependent dimensions. The organizational integrity triad—consisting of active commitments to self‐imposed norms and principles, their transparent institutionalization into corporate processes and structures, and their implementation into action—plays a key role in this context. (shrink)

A citizens’ movement in Berlin advocates for the expropriation of housing corporations and has won a significant majority in a popular referendum in September 2021. Building on this proposal, this paper develops a general account of expropriation as a measure for corporate reform and thereby contributes to the ongoing debate on the democratic accountability of business corporations. It argues that expropriation is a valuable tool for intervention in a dire situation in some economic sector to enable a re-structuring (...) of the governance of the assets in question. Compared with other tools available, expropriation is a more forward-looking, genuinely political measure that does not depend on the legal assignment of guilt but rather proceeds in a pragmatic and problem-oriented manner. It also allows us to reconsider in how far the market mechanism should be employed in the administration of assets. Objections from private property rights against expropriation fail as corporations generally are privileged, quasi-public institutions that can justifiably be subject to democratic interventions. Expropriation is thus an important addition to the arsenal of corporate reform proposals, especially for those concerned with a broad democratization of the corporation. (shrink)

This paper presents a succinct review of the movement for moral genesis in business that arose in the 1970s. The moral genesis movement is characterized by: the rejection of the premise that business and ethics are antagonistic; the rise of the Issues Management approach, which stresses the social responsibility of the corporation: disdain of government regulation as a means of business moralization, and a search for control measures aimed at improving organization moral behavior. This movement now begins to give rise (...) to a new organizational model, the Self-Moralizing Corporation, which transcends existing paradigms of corporate rectitude. The tenets of the Self-Moralizing Corporation are that: the moral behavior of members is a requisite to the attainment of organization goals; individual moral behavior is an asset which must be managed and developed by the corporation; individual moral development is a collectively and individually shared responsibility; and, the maintenance of moral values is more important than the preservation of organization structure. (shrink)

Corporate governance has come to be recognised as a cornerstone of economic reforms seeking to promote stability and growth in developing countries. The Asian crisis of the 1997 was viewed as having roots in poor governance and hence national governments as well as international organisations have sought to promote a strengthening of governance mechanisms. This article investigates governance reforms in India over the last decade. The paper reviews changes in Indian governance codes that indicate a preference of adoption of (...) Anglo-American governance models. A survey of ownership structures of Indian listed companies reveals a mixture of governance mechanisms and a persistence of the "business house model" of governance. The paper concludes that despite external pressures towards an "Anglo-Americanisation" of governance practice, the outcomes thus far reveal the emergence of a diversity of governance mechanisms arising in a path-dependent fashion. (shrink)

This study draws on deontic justice theory to examine an unexplored socioemotional micro-foundation of corporate social responsibility (CSR), namely anticipated guilt, in an effort to improve our understanding of employees’ moral reactions to their organization’s CSR. We empirically investigate whether environmental CSR induces anticipated guilt (i.e., concerns about future guilt for not contributing to organizational CSR) leading to organizational environmental citizenship behavior. We also consider two boundary conditions related to the social nature of anticipated guilt: line manager (...) support for the environment and negative environmental group norms. To test our hypotheses, we analyzed data from a convenience sample of 503 managers working in Mexican organizations, using Latent Moderated Structural equation modeling. Overall, our results support the deontic argument that employees care about CSR because CSR embodies moral concerns. Specifically, our findings show that efforts to avoid a guilty conscience increase when the line manager provides increased resources and control to act for the environment, and when group members do not care for the environment, suggesting that employees feel they have to compensate for their group’s moral failure. (shrink)

This paper extends previous attempts at understanding the nature of organizational integrity and its increasingly important role for companies which, after all, bear a moral and societal responsibility. Interpretations of organizational integrity in business ethics literature incorporate aspects ranging from the behavior of managers and employees to corporate structures and incentive systems. We argue that virtue ethics builds an indispensable framework for understanding the origin of the concept of integrity and transfer these findings to an organizational (...) level. Hence, we first define organizational integrity, and second operationalize it in a closed three-step process, consisting of morally sound corporate commitments, their transparent institutionalization within the company, and their implementation into actions. We consider the main goal of organizational integrity to be of a preventative investment nature. Organizational integrity is a company investment that translates into avoiding fines for potential violations of the law or ethical missteps, as well as an investment in the company’s reputation. In turn, organizational integrity can protect a company from disruptions that can threaten its existence. Defining and operationalizing the concept of organizational integrity provides the foundation for future scientific research and the basis for developing practical guidance for organizations and managers. (shrink)

This study tests an integrative model of corporate political action, the filter model, based on the behavioral theory of the firm. The filter model posits that external political, economic, and industry environments are mediated by organizational structures and resources to affect a firm’s political actions. The authors rate the filter model’s predictive power against that of an economic-based direct-effects model by examining the efforts of about 1,100 U.S.-domiciled manufacturing firms to influence trade policy. LISREL analysis demonstrates that the (...) integrative filter model provides a superior explanation of corporate political action. (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)

Stakeholder interest in the accuracy of Environment Social and Governance data and Corporate Social Responsibility authenticity has increased, as more companies are disclosing their ESG data. Employees are one of the most important stakeholders of a company, and they have access to more CSR information than other external stakeholders. Employees have a dual role of observing and participating in CSR. Employee perceptions of CSR authenticity play a key role in the positive effects of CSR. In this study, the research (...) model was analyzed through multilevel analysis to contribute to the literature on the mechanism by which CSR affects employees’ job attitudes and perceptions of CSR authenticity. First, hypothesis testing confirmed that external CSR is positively associated with employees’ perceptions of CSR authenticity. Second, CSR authenticity mediates a positive relationship between external CSR and emotional commitment. As the direct effect of external CSR on emotional commitment was not statistically significant, it could be confirmed that the full mediation relationship was significant through CSR authenticity. This study makes three theoretical contributions to the literature on employees’ perceptions of CSR. First, it examines the mechanism of the impact of CSR on employees. By examining the mechanism by which employees recognize and interpret CSR, this study attempts to uncover the black box that CSR affects employees. Second, this study contributes to the literature on CSR authenticity by explaining the mediating role of CSR authenticity in the relationship between CSR and employee job attitudes through construal level theory. Finally, this study contributes to the employee-based CSR literature by analyzing the effect of CSR as an organizational-level variable on emotional commitment as an individual-level variable through multilevel structural equation modeling. (shrink)

This paper develops an empirically grounded, processual view of corporate social performance (CSP) by analyzing how internal organizational processes affect a firm’s social performance. Based on two case studies, we argue that changes in a firm’s social performance are triggered by continuously reoccurring instances of poor fit between the firm’s routines and its institutional environment. We propose that reactive change processes, initiated by stakeholder critique threatening the organization’s legitimacy, will result in isomorphic type of social performance changes. In (...) comparison, proactive change processes, initiated by slack resources, are more likely to result in nonisomorphic type of social performance changes. Furthermore, we propose that top-down driven processes will result in structural social performance changes in the direction of internationally influential stakeholders’ demands, while bottom-up driven processes will result in output social performance changes in the direction of locally influential stakeholders’ demands. (shrink)

Corporate legal scholarship has failed in fundamental ways to grasp the ethical significance of corporate law and policy. While the broader economic and social consequences of particular legal developments are routinely debated, too little reflection is given to how such developments affect the moral quality of individual lives within the corporate hierarchy. What is needed is a framework for illuminating the interaction between developments in corporate legal doctrine and the ethical choices of corporate managers. The (...) ethical significance of corporate law derives from two key factors. First, the corporation as an organization mediates between individuals in the corporate hierarchy and their ethical responsibilities. Second, the organizational choices and decision-making structure of the corporation are to a significant degree the product of corporate law. (shrink)

This paper commences a creative challenge to conventional corporate social responsibility (CSR) literature, proposing a model of constructive corporate participation (CCP). The model arises from ongoing work conducted by the Committee for Melbourne, describing the way in which unique structures such as the Committee for Melbourne allow corporations to address complex social issues alongside government and civil society for mutual betterment of business and society. An interview series with Committee members was undertaken to establish the characteristics of the (...) Committee set against other business organizations. The paper is set in an organizational learning framework, represents work in progress, and was undertaken to enhance understanding of the role business plays in society and its function as one of many actors influencing societal health development and wellbeing. (shrink)

As demonstrated by the popularity of social networking sites such as Facebook and Twitter, Internet-based social networks have become an important part of daily life, and many businesses are now involved in such networks either as service providers or as participants. Furthermore, inter-organizational networks are becoming an increasingly common feature of many industries, not only on the Internet. However, despite the growing importance of networks for businesses, there is little theoretical study on the social responsibilities of businesses in such (...) networks, and how these responsibilities are affected by different types of networks. This article explores how social network analysis, which has been developed from studies of social networks of individuals, can be used to shed light on corporate responsibilities in social networks. (shrink)

Models of moral responsibility rely on foundational views about moral agency. Many scholars believe that only humans can be moral agents, and therefore business needs to create models that foster greater receptivity to others through ethical dialog. This view leads to a difficulty if no specific person is the sole causal agent for an act, or if something comes about through aggregated action in a corporate setting. An alternate approach suggests that corporations are moral agents sufficiently like humans to (...) be treated as persons, which leads to questions of intentionality and the organizational structure required to support the claim. In this article, I make an intermediate claim combining Goodpaster and Matthews' (60:132–141, 1982 ) view that a corporation may have a moral culture which affects subjective choices, with those of Painter-Morland (17(3):515–534, 2007 ) who points out that we should move from a model that posits discrete persons acting on each other to one where morality comes about through shared experience between agents who participate in each other’s lives. I argue that the discussion has been trapped in traditional dichotomies, and is better served by language that more accurately represents the dynamic interplay between organization and individual. I underwrite this claim by looking at recent changes in British and American legal approaches to corporate responsibility. These provide greater incentives for owners and business leaders to encourage employees to discuss the reflexive nature of legal and moral responsibility in business, facilitate workers to voice their moral concerns, and create structures and processes that allow those concerns to be heard. (shrink)

Organisational Ethics could be more effectively taught if organisational agency could be better distinguished from activity in other group entities, and defended against criticisms. Some criticisms come from the side of what is called “methodological individualism”. These critics argue that, strictly speaking, only individuals really exist and act, and organisations are not individuals, real things, or agents. Other criticisms come from fear of the possible use of alleged “corporate personhood” to argue for a possible radical expansion of corporate (...) rights e.g. to claim a right to vote. Others say that if corporate businesses were persons, and judged as such, they would be sociopaths (Bakan 2004). Large corporate businesses are one kind of organisation, and if organisations were allowed to claim to be full persons, this would mean that the latter criticisms were valid. The proposed account goes between the horns of the above dilemma: impersonal aggregates or full persons. It avoids both the reductive individualism and expansive, full personhood account. It gives grounds for attributing and distributing praise and blame to organisations as whole complex entities, and to their parts. Primarily, responsibility belongs to Board incumbents within them, on the basis of their goals; their direction of the acts of the other main internal role incumbents, managers and staff, and enablers, in the role structure; their own ethical decision methods; the impact of their acts on external stakeholders like end-users, other players in the practice or local community, and on the state. These factors are picked out on the basis of a theory of meaning Aristotle’s theory of analogy of attribution, some architectonic features of his Philosophical Anthropology; and Neo-Aristotelian Virtue Ethics (NAVE). The paper expounds a quasi-person model of organisations, (QPM), previously described in this journal (Ardagh 2011, 2012, 2013). This model identifies functional similarities at three levels, between capacities within natural persons (NPs) on the one hand and the roles/ incumbents within the structure of organisational artificial/quasi-persons (APs on the other). In each entity, we find an architectonic direction, sub-ordered operational entities, and enablers (a DOE structure) in a communicative structure or reporting chain of authority. The common elements between natural persons (NP) and artificial persons (AP) and their ethically relevant attributes are captured in an acronym –GRAEOS. Both persons and organisations have a “top” entity capable of having/choosing worthwhile ethically permissible goals, G; of architectonically directing the use of capacities/repertoires or incumbents in designed architectonic roles, R, within a DOE-type structure, well or badly; of using ethical decision making procedures, E; of execution of good choices for the person or organisation in action, A, with good or bad impacts on others, or with others, O, in the context practice or domain; and of having good relations with the law and the state, S. Application to the 1989 Exxon Valdez disaster, and public sector organisations, is briefly discussed to illustrate the potential to deal with short or long case study narratives. (shrink)

The origins of U.S. corporate taxation are often associated with the 1909 corporate excise tax. Scholars who have investigated the beginnings of this levy have mainly focused on the legislative history of the 1909 corporate tax to argue that it was either an expression of the Progressive Era impulse to regulate large-scale corporations or an attempt to use corporations as remittance devices to collect taxes aimed at wealthy shareholders. This Article broadens the conventional historical accounts of the (...) emergence of American corporate taxation by revisiting the 1909 U.S. corporate tax from a comparative perspective. The aim is to look both below and beyond the American nation-state to determine how and why U.S. state governments and other Western industrialized nations tried to tax corporations at the turn of the twentieth century. This Article investigates a small slice of subnational and transnational comparative examples: corporate tax laws and policies in a few representative nineteenth-century industrializing American states, and in turn-of-the-century England and Germany. Building on the well-known insights of comparative business history, this Article contends that historically-determined political interests, social ideas, and cultural beliefs help explain the American obsession with disciplining large-scale business corporations through the use of nominally punitive tax laws and policies. Comparative-historical analysis shows how differences in the organizational structures of big businesses across place and time have led to variations in political economy that were ultimately expressed in the legal ideas and cultural attitudes toward corporate capitalism. These variations, in turn, shaped the transnational distinctions in corporate tax law and policies. Greater attention to the comparative-historical development of law and political economy may help us understand the stubborn persistence of American corporate taxation, particularly in the face of recent global changes and the relentless economic critiques of the double taxation of corporate income. (shrink)

The corporate citizenship (CC) concept introduced by Dirk Matten and Andrew Crane has been well received. To this date, however, empirical studies based on this concept are lacking. In this article, we flesh out and operationalize the CC concept and develop an assessment tool for CC. Our tool focuses on the organizational level and assesses the embeddedness of CC in organizational structures and procedures. To illustrate the applicability of the tool, we assess five Swiss companies (ABB, Credit (...) Suisse, Nestlé, Novartis, and UBS). These five companies are participants of the UN Global Compact (UNGC), currently the largest collaborative strategic policy initiative for business in the world (www.unglobalcompact.org). This study makes four main contributions: (1) it enriches and operationalizes Matten and Crane’s CC definition to build a concept of CC that can be operationalized, (2) it develops an analytical tool to assess the organizational embeddedness of CC, (3) it generates empirical insights into how five multinational corporations have approached CC, and (4) it presents assessment results that provide indications how global governance initiatives like the UNGC can support the implementation of CC. (shrink)

The Sarbanes-Oxley Act of 2002 is considered by many to have made the most sweeping changes affecting corporate governance since the Securities and Exchange Acts of 1933 and 1934. About 4 years after its passing, however, many governance experts question whether the time and expense of compliance engender any real reforms. This article examines whether corporations have restructured their boards in response to the enactment of Sarbanes-Oxley and finds evidence that companies are implementing changes that should strengthen the monitoring (...) ability of their boards. (shrink)

AbstractIn the wake of organizational scandals associated with corporate America servant as well as transformational leadership are seen as approaches capable of engendering a type of morality—on the part of leaders and followers—based on shared values, universal moral principles and an orientation towards a pro-social behavior serving the common good. However, recent critiques have highlighted the tendency in the relevant literature to overlook the systemic context within which leadership and followership are situated. Given this oversight this paper re-visits (...) a classic piece of ethnography on corporate America: Robert Jackal’s Moral Mazes. Employing concepts from critical realism fused with insights from studies on management and bureaucracy we analyse the key themes from the book pertaining to the nature of the leader–follower dynamic in shareholder capitalism. The analysis highlights the role of bureaucracy and corporate ideology as key elements shaping leader–follower relationships, encouraging a type of morality associated with guarding self-interest whilst undermining relationality. The influence of the structural and cultural context in which leader–follower relations unfold draws attention to morality as relationally contingent as opposed to an ideal state. (shrink)

Corporate social responsibility (CSR) disclosure is becoming increasingly important in practice, yet knowledge about the antecedents of such CSR initiatives is limited. Drawing on faultline theories, we expect that the compositional attributes of top management teams, such as the level of heterogeneity, influence their decisions about CSR disclosure and reporting. Data and a sample from Chinese publicly traded companies are used to examine our hypotheses. Our results demonstrate that a top management team's faultline strength is negatively related to CSR (...) disclosure decisions and CSR report quality. We contribute to the literature about CSR disclosure by offering specific insights, through a micro-level analysis, about how to compose and structure top management teams to advance CSR in emerging economies such as China. Practical implications for managers and policymakers are also discussed. (shrink)

Companies operating and located in emerging economy nations routinely couch their corporate social responsibility (CSR) work in nation-building terms. In this article, I focus on the Indian context and critically examine mainstream CSR discourse from the perspective of the culture-centered approach (CCA). Accordingly, five main themes of CSR stand out: nation-building facade, underlying neoliberal logics, CSR as voluntary, CSR as synergetic, and a clear urban bias. Next, I outline a CCA-inspired CSR framework that allows corporate responsibility to be (...) re-claimed and re-framed by subaltern communities of interest. I identify such resistive openings via interrogations of culture (I focus on oft-cited Gandhian ethics here), structure (State policy, organizational strategy, and global/local flows), and agency (subaltern reframing of institutional responsibility, engagement with alternative modes of agency, and deconstructive vigilance). (shrink)

In this article, we analyze the relationship between the main dimensions of organizational structure (i.e., formalization, centralization, and complexity) and ecological responsiveness in a sample of 109 firms in the European air passenger transport industry. Broadly confirming our hypotheses, the results show that high formalization of routine tasks favors ecological responsiveness. Structures characterized by high decentralization and low complexity also favor ecological responsiveness. Furthermore, decentralization has a significant, positive relationship with ecological responsiveness among firms with low vertical complexity. (...) Overall, the results indicate that organizational structure plays a major role in ecological responsiveness. (shrink)

Summary This paper reports on an analysis of organizational structures in Swedish elite ice hockey and is concerned with the organization at club level, its similarities and differences with regard to the clubs’ structural dimensions: specialization, standardization and centralization. Findings are based on structured interviews with the general managers of 11 clubs represented in the Swedish elite league and on official and unofficial documents. The results, categorizing the clubs for each of these three structural dimensions into Law, Medium, and (...) High, reveal some smaller variations in structural features, but mainly similarities, explained using the concept of adaptive isomorphism. (shrink)

The aim of the research is to shed light on the nature of the organizational structure prevailing in Palestinian governmental universities and to identify the most important differences in the perceptions of employees of the organizational structure in the Palestinian governmental universities according to the demographic and organizational variables. The researchers used the descriptive analytical method, through a questionnaire randomly distributed to the sample of the employees of Al-Aqsa University. The study was conducted on a (...) sample of (80) administrative staff from Al-Aqsa University. The study found that there is a moderate degree of satisfaction with the nature of the organizational structure prevailing in the Palestinian governmental universities from the point of view of the administrative staff, with a percentage of (63.11%). The absence of differences between the sample according to the gender variable in their perception of the nature of the organizational structure prevailing at Al-Aqsa University, the absence of differences in their perception of the nature of the organizational structure depending on the age variable. There are statistical significance differences in the perception of the elements of the organizational climate depending on the variable of scientific qualification in their perception of the nature of the organizational structure in favor of holders of a bachelor's degree, the absence of differences in their perception of the nature of the organizational structure depending on the variable years of service, and the absence of differences in their perception of the nature of the organizational structure depending on the variable level of career (Director, Head of Department, and Administrative Officer). The study reached a number of recommendations, the most important of which is that the management of the Palestinian governmental universities in general and Al-Aqsa University in particular should be given special attention to the organizational structure and modified in a way that achieves the goals of the university and the aspirations of the employees. The universities should have the opportunity to participate in the restructuring of the organizational structure, the importance of solving the problems of employees and giving them the opportunity to contribute to solving their own problems, and the need to use the method of rotation of employees and periodically. (shrink)

As frequent, violent, and organized peasant protests show, China’s reform regime has lost its once all-powerful control in the countryside. The sharp decline of village cadres’ positional authority in allocating economic resources, which began in post-Mao decollectivization, holds the key to explaining the change. Since the late 1990s, the collapse of village enterprises and the erosion of power over land have cost village cadres their remaining economic levers to engage the villagers as well as their incentives to work for (...) the party-state. The loss of the regime’s grip on village cadres and the loss of command by village cadres on peasants have almost synchronized, causing the traditional structure of organizational control to crumble in vast rural areas. In the new, prevailing patterns of village governance, party power is becoming increasingly irrelevant. (shrink)

This article presents an overview of traditional legal and regulatory incentives directed at achieving lawful corporate behavior, together with examples of more recent governmental incentives aimed at encouraging self regulation activities by corporations. These incentives have been differentiated into positive incentives that benefit corporations for actions that encourage or assist lawful behavior, and punitive incentives that only punish corporations for violations of legal or regulatory standards. This analysis indicates that traditional legal and regulatory incentives for lawful corporate behavior (...) are overwhelmingly punitive in their intended effects, while more recent governmental incentives to encourage voluntary corporate self regulation are much more positive in their intended effects.A prototype private compliance system containing typical features specified in governmental incentives for corporate self regulation was then analyzed applying the same positive/punitive analysis that was performed with the governmental incentives. This analysis suggests that corporate compliance programs that are structured to comply with Department of Defense regulations for defense contractors or the new Federal Organizational Sentencing Guidelines will reflect the same overwhelmingly punitive balance of incentives for lawful and ethical employee conduct as do the traditional legal and regulatory incentive systems for lawful corporate behavior. (shrink)

Organizational transgressions cause recurring scandals. Often disclosed by whistleblowers, they generate public outrage and force organizations to respond. Recent studies have tried to answer the question: “What happens after a transgression becomes publicly known?” They highlight organizational responses marked by recognition of the transgression, penance and reintegration of the organization. However, that research only deals with transgressions involving illegal organizational practices. This article broadens the field of study to include legal but unethical organizational practices. It is (...) based on the case study of a recent scandal: LuxLeaks (2010–2018). This scandal concerns tax avoidance practices that were advised by the international audit and consulting firm PwC to hundreds of companies and made public by whistleblowers. The case data result from cross-comparisons of several organizational (PwC) and governmental (Luxembourg) communication documents as well as parliamentary, judicial and press documents. The article’s results highlight a legalistic organizational response that is so far under-explored in the literature. This response is marked by a rhetoric of denial, reformism and self-victimization and by judicial retaliation against the whistleblowers. It reveals the paradoxes of “legalization” in contemporary organizations, and its role in the perpetuation of unethical corporate practices. (shrink)

Until recently, as market forces gradually prevailed over government intervention, the contractarian view had emerged as a preferred method of economic governance due to its attractiveness for business. Following the recent collapse of financial markets and the resulting recession, however, this structural form is now being called into question as the calls for more regulation and government intervention increase. In this context, this article revisits the law versus contract debate in the field of corporate law and governance. Following a (...) theoretical framework utilizing elements of game and resource-based theory of the firm, the company is envisaged as a central counterparty in repeated bargains with its stakeholders. It is shown that power dynamics, which are inherent in the repeated bargains between stakeholders and the company, are prone to imbalance rather than balance by causing cumulative increases in the relative power of stronger parties and vicious spirals of relative power loss for weaker ones. This cumulative power imbalance is then reflected in the organizational rent appropriation process, as weaker parties are eventually expropriated by stronger ones. It is therefore argued that since the contractual model is inherently prone to instability, mandatory power-balancing rules are necessary. Such (re)balancing regulation, however, would need to follow a systemic approach because stakeholder and company power is drawn from, and affected by numerous structural arrangements in the legal and economic system. (shrink)

Corporate Social Responsibility is a label covering managerial checks and institutional balances introduced against the background of ethical values. Values are clearly formulated and organizational processes are designed with the inclusion of stakeholders and their voice in mind. In case of the post-communist societies designers of CRS cope with an additional level of complexity. Original sin of market reforms after the political fall of the communist regimes is the corrupt take-over of markets and democracies. Social institutions of capitalist (...) markets and democratic states have been subverted and invaded by the unpurged networks of the post-communist power elites. They privatized the wealth of state enterprises becoming new owners of economic resources and they drifted towards the top functions in state institutions becoming post-communist power brokers. Their long-term monopoly of the media left them in command of the mainstream PR communications long after their absolute political power was gone. Democratic institutions, and the right to free speech are daily challenged by influential image and market competition. They cannot be taken for granted. Some democratic institutions are undermined by subversive networks of the corrupt mafias often formed by ex-functionaries of the communist party and her secret services. Their tacit power is explicitly legitimized by media-clusters of cultural representatives of the communist ex-power elites exploiting leftist bias of media mainstreams. (shrink)

Previous studies investigating reports of corporate or individual wrongdoing have failed to examine the effects of an organization's structure upon the decision to blow the whistle. This paper suggests that an organization's structure may perform a significant role in the decision to report versus not report an observed wrongdoing. Five organizational structures were examined in regards to their effectiveness in encouraging or discouraging observers of unethical conduct channels for reporting such behavior. Discussion and implications are provided.

ABSTRACT:The notion of “democracy” has become a much-debated concept in scholarship on business ethics, management, and organization studies. The strategy of this paper is to distinguish between a principle of organization that fosters participation (type I democracy) and a principle of legitimation that draws on consent (type II democracy). Based on this distinction, we highlight conceptual shortcomings of the literature on stakeholder democracy. We demonstrate that parts of the literature tend to confound ends with means. Many approaches employ type I (...) democracy notions of participation and often take for granted that this also improves type II democratic legitimation. We hold this to be a mistake. We provide examples of the ambiguity of organizational procedures and show that under some circumstances a decrease in the degree of participation may actually increase legitimation because a governance structure that results in higher productivity can provide higher benefits for all parties involved, serve their interests and therefore meet their agreement. Less type I democracy may mean more type II democracy. We believe this to be an important insight for judging (and further improving) the legitimacy of both capitalistic firms and competitive markets. (shrink)