This article explores the concept of cultural competence and its relevance as an organizational resource in ethical disputes. Empirically, we aim to reveal the cultural competences that a global forest industry company, StoraEnso, and a global environmental nongovernmental organization (NGO), Greenpeace, utilized in forestry conflicts during 1985–2001. Our study is based on data which were collected from corporate and NGO communication outlets and which have gone through a detailed discourse-semiotic analysis. Our reinterpretation of the discourses identified three cultural competences: (1) (...) the ability to understand changing consumer preferences and values, (2) the ability to utilize culturally determined positions of expertise, and (3) the ability to maintain trust and credibility in the community through open communicative practices. We argue that these competences are relevant in industry–NGO disputes for both parties. However, maintaining them all simultaneously is a difficult task, since various discourses which aim at upholding them can sometimes have contradictory effects. (shrink)

How is the (il)legitimacy of manager compensation constructed in social interaction? This study investigated discursive processes through which heavily contested executive pay schemes of the Finnish energy giant Fortum were constructed as (il)legitimate in public during 2005–2009. The critical discursive analysis of media texts identified five legitimation strategies through which politicians, journalists, and other social actors contested these schemes and, at the same time, constructed subject positions for managers, politicians, and citizens. The comparison of two debate periods surrounding the 2007–2008 (...) financial crisis revealed significant differences in the discursive strategies and the corresponding moral struggles linked to legitimation of executive compensation. The analysis highlights a change in moral reasoning by social actors as they adapt their justifications to a changing social context. This study has important implications for our understanding of the ethical aspects and socio-political embeddedness of manager compensation. In particular, it adds to our knowledge of organizational legitimacy by showing how discursive strategies and the corresponding morality constructions used to (de)legitimate business activities can shift quickly as a result of a change in the social and political climate surrounding the legitimation struggle. (shrink)

This article extends our understanding of the firm–nongovernmental organization relationship by emphasizing the role of language in shaping organizational behavior. It focuses on discursive and rhetorical activity through which firms and NGOs jointly – and not always consciously – define boundaries for socially acceptable corporate behavior. It explores the discursive legitimation struggles of a leading Finnish forest industry company StoraEnso and Greenpeace during 1985–2001 and examines how these struggles participated in the definition and institutionalization of corporate social responsibility. I find (...) a mixture of rational and moral struggles as a key feature of this legitimation work and show how different manifestations of these struggles act as a central mechanism that redefines what the boundaries of corporate responsibility are in a specific setting at a given point of time. The study illustrates how the actors’ ability to sense the public’s views contribute to rhetorical difficulties of the industry and unintended societal consequences for the activists, and how the rational and moral struggles build up in time to trigger changes in the actors’ sensemaking and actions. (shrink)