This paper reports research on the influence of corporate and individual characteristics on managers'' social orientation in Germany. The results indicate that mid-level managers expressed a significantly lower social orientation than low-level managers, and that job activity did not impact social orientation. Female respondents expressed a higher social orientation than male respondents. No impact of the political system origin (former East Germany versus former West Germany) on social orientation was shown. Overall, corporate position had a significantly higher impact (...) on social orientation than did the characteristics of the individuals surveyed. (shrink)

For many, the case of the Exxon Valdez oil spill has become a symbol of unethical corporate behavior. Had Exxon’s managers not callously pursued their own interests at the expense of the environment and other parties, the accident would not have happened. In this paper, we (1) present a short case study of the Valdez incident; (2) argue that many analyses of the case either ignore or fail to give sufficient weight to the uncertainties managers often face when they (...) make decisions; and (3) propose a framework for moral management grounded in principles of communicative ethics, moral dialogue, and in the non-traditional ideas of many current management and behavioral decision theorists. From this view, the moral manager is not expected to know the “correct” answer to every ethical issue, but rather to participate responsibly in an open dialogue with other interested parties. (shrink)

For many, the case of the Exxon Valdez oil spill has become a symbol of unethical corporate behavior. Had Exxon’s managers not callously pursued their own interests at the expense of the environment and other parties, the accident would not have happened. In this paper, we (1) present a short case study of the Valdez incident; (2) argue that many analyses of the case either ignore or fail to give sufficient weight to the uncertainties managers often face when they (...) make decisions; and (3) propose a framework for moral management grounded in principles of communicative ethics, moral dialogue, and in the non-traditional ideas of many current management and behavioral decision theorists. From this view, the moral manager is not expected to know the “correct” answer to every ethical issue, but rather to participate responsibly in an open dialogue with other interested parties. (shrink)

We use content analysis to show that the diagnosis of the financial crisis of 2007–2009 shifted significantly from a focus on the need for structural change in the banking industry to an emphasis on culture and reform at the organizational level. We consider four overlapping subsystems in which this shift in problem–solution clusters played out—political, regulatory, legal, and consulting—and show that the “structural reform agenda,” which was initially strong and publicly prominent in the political arena, lost attention. Over time it (...) was displaced by a neoliberal managerialist turn, which watered down or abandoned structural solutions and instead played up a new “culture and conduct reform agenda.” We explain this shift in terms of the marketization of regulation, which—following Mautner (_Language and the market society_, 1st ed. Routledge, 2010)’s model of interdiscursive alignment—we detect in the shifting language of financial-services reform across the four subsystems in scope. We argue that a neoliberal turn took place with a _discursive closure_ that made the structural reform alternative gradually unsayable and, in the end, unthinkable. At the same time, the discourse turned to embrace the neoliberal agenda, built on the myth of self-regulating actors and markets, manifest in the culture problematic. This managerialist turn was able to mobilise, and be operationalised by, an industry of consultants, whereas structural change came to be seen by regulators as too risky to implement. We claim that these dynamics reveal how a form of “collective strategic ignorance,” based on powerful institutional myths, was systematically oriented to ignore and reject structural sources of crisis. Finally, we suggest that the observed pattern of displacement—whereby initial calls for structural change become later displaced by managerial and procedural solutions—is common to other social issues, such as audit reform and corporate social responsibility. (shrink)

What's wrong with high executive pay? Beyond envy, is some issue of justice or fairness at stake? And what can anyone do about it? (A lot, as it turns out.).

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)

This article investigates relationships between countries' legal traditions and their quality of life as measured by a number of widely reported social indicators; in so doing it also offers a critique of a highly influential body of work which is widely cited in the literatures of corporate governance, economics and finance. That body of work has shown, inter alia, statistically significant relationships between legal traditions and various proxies for investor protection. We show statistically significant relationships between legal traditions and (...) various proxies for societal health. Our comparative evidence suggests that the interests of investors are not congruent with the interests of wider society, and that the criteria for judging the effectiveness of approaches to corporate governance should be broadened. (shrink)

ABSTRACT In Billionaires in World Politics Peter Hägel considers how the experience of wealth accumulation shapes billionaires’ political agency. To understand the agentic power billionaires exercise in world politics, he proposes that we should examine (1) personality traits that dispose people to participate in politics and (2) connections between capacity and intentions. In this paper, I argue that Hägel’s account of billionaires’ agency in world politics depends on two assumptions. The first is an implied meaning of world politics and (...) the second is the imagination that billionaires have equal access to social and cultural goods that guarantee meaningful engagement in world politics. I analyze these assumptions to argue that Hägel’s account of billionaire agency fails to take adequate notice of the dialectical relationship between corporate power and billionaire agency. A robust account of the agency of billionaires in world politics, I argue, must take this dialectical relationship as its foundation. (shrink)

Corporations significantly influence the public and political spheres. In light of this corporate power in society, academics have criticized the lack of legitimization (i.e., the legitimacy gap) and highlighted a potential divergence between corporate resource allocation and the needs and preferences of the public (i.e., the social issues gap). To address these problems, democratizing organizations has been proposed as a potential solution. In line with this, the authors argue that an increase in corporate power outside (...) the economic realm should be counterbalanced by more democratic corporate governance (i.e., an internalization of democracy). While important groundwork exists, academic attention to these topics remains limited. The authors provide an overview of the literature linking corporate power and the claim for democratizing organizations, advocate for legitimization, identify research gaps, and develop a research agenda to inspire and guide future research efforts. The paper's findings suggest the importance of conceptual and empirical research on the micro-, meso-, and macro-levels and the cross-level effects, which is needed to advance this incipient research area. Future research must (1) clearly define corporate power and discuss how democratizing organizations can contribute to more legitimate organizational decisions, (2) unveil novel approaches for more democratic corporate governance, and (3) understand the organizational- and individual-level factors necessary for the successful realization of democratic organizations. (shrink)

In recent years, an interdisciplinary debate on the social and political role of business corporations has evolved. With this special issue, we would like to facilitate a comprehensive discussion of three questions that are especially pertinent in that debate: (1) How is the social and political agency of corporations to be understood? (2) How should the power of corporations be analyzed? (3) Under which conditions would the social and political roles of corporations be legitimate? In this introduction to the (...) special issue, we start with a short outline of the debate. In the next step, we provide an overview of the five contributions. We conclude by summarizing what can be learned from those contributions with respect to the three research questions. (shrink)

Corporations have not sufficiently yielded to social pressures for humanitarian reforms. To make such reforms requires that management give up some control. Giving up control contradicts traditional managerial philosophy. The bureaucratic structure of corporations gives management the power to virtually eliminate most social influences. An alternative to the bureaucratic corporation is a shared ownership corporation where investors, management, and low ranking employees all own the corporation. This alternative balances the power by giving all participants in the corporation (...) class='Hi'>power to influence policy. Without this redistribution of power, or something like it, any hope for significant humanitarian reforms is vain. (shrink)

This paper examines the question of how to determine the extent of a multinational corporation ’s corporate social responsibility for actions by its suppliers. Drawing on three theories of power and influence from the organization and management literature—resource-dependence theory, social exchange theory and social network theory, this paper presents a conceptual framework for analysing the extent of power and influence of an MNC in a global supply chain based on a consideration of economic and non-economic exchanges and (...) direct and indirect exchanges in the MNC’s industry network. The paper also shows how the legal concept of complicity can be incorporated by considering the knowledge links of the MNC to other organizations in the industry network. Finally, the paper demonstrates how the concepts can be integrated to construct a power assessment grid which can be used to assess the extent of responsibility of an MNC for the actions of its suppliers and other parties in the industry, as well as a map of power and knowledge relationships between organizations in the industry which can be used for further analyses using social network analysis techniques. (shrink)

The impact of large digital corporations on our freedom is often lamented but rarely investigated systematically. This paper aims to fill this desideratum by focusing on the power of social media corporations and the freedom of their users. In order to analyze this relationship, I distinguish two forms of freedom and two corresponding forms of power. Social media corporations extend their users’ freedom of choice by providing many new options. This provision, however, comes with the domination by these (...) corporations because it is based on their power of uncontrolled interference. Users could escape this domination through exit. One reason why they do not choose this option is that they would lose the benefits associated with the network effects provided by social media services. A second reason is that the power of social media corporations runs so deep that they are able to manipulate the autonomous decision-making processes of their users. Users are provided with many new avenues for authentic self-presentation on social media. By using them, however, users need to conform to a web interface that is designed by corporations to undermine self-control. Through these two mechanisms, corporations are able to promote an interest in users to present themselves on their platforms. Insofar as this works, they secure the users’ compliance to their domination through subjectivation. This double conjunction of choice and domination, on the one hand, and autonomy and subjectivation, on the other, makes the case that the very power of corporate social media stems from their intrinsic connection to genuine practices of freedom. (shrink)

In this paper I discuss the power of corporations as epistemic agents. Corporations need to hold certain forms of knowledge in order to develop and produce goods and services. Intellectual property is meant to incentivize them to do so, in ways that orient their activities towards the public good. However, corporations often use their knowledge strategically, not only within markets, but also in the processes that set the rules for markets. I discuss various historical examples, including the so-called “tobacco (...) strategy” of creating doubt about scientific evidence, and argue that as long as corporations are set up as profit-oriented entities, it is a dangerous strategy to provide them with too much epistemic power. I suggest various policies for reigning in this form of corporate power, for example regulations on PR activities. I then turn to the power of digital corporations, which is based on their collection and analysis of data. These kinds of companies, and the technologies they use, make the control of corporations as epistemic agents all the more urgent for democratic societies. (shrink)

A common opinion is that power has shifted from states to companies. This article discusses quantitative and qualitative aspects of power possessed by companies and by states. A more adequate comparison than that between company sales and gross national product is the one between company value added and GNP. Also more adequate is the comparison between the public sector and company net profit. These rival measures take down company power to about a tenth of the sales measure. (...) Also in qualitative terms the "exit power" of the company gives a low impact compared to governmental action and the article concludes that company power by common measures is overestimated. However, the aggregated long-term effect of the market economy on the development of society is most significant. But it is a mistake to use that judgment as an argument for the opinion that business executives are the major power holders in modern societies. Perceptions of power also have an impact on which expectations and commitments that can be judged as realistic and therefore the issue of power is central for the normative discussion about corporate social responsibility. (shrink)

This book addresses corporate power, global inequality and sustainability in shaping health outcomes.

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)

Global democratization cannot be achieved by simply replicating familiar democratic institutions on a global scale. We must explore alternative institutional means for establishing democratic institutions at the global level within the present pluralist structure of global power.

Political protesters often don’t play by the rules. Think of the Occupy Movement, which brought lower Manhattan to a standstill in 2011 under the slogan, “We are the 99%”. Closer to home, think of the refugee activists who assisted a breakout from South Australia’s Woomera detention centre in 2002. Both are examples of contentious politics, or forms of political engagement outside the institutional channels of political decision-making. The democratic credentials of contentious politics are highly ambivalent. On the one hand, contentious (...) politics appears to have insufficient respect for democratic decision. Protesters are often forceful, uncivil and rowdy, aiming to disproportionately influence policy. But shouldn’t proposals be put forward with civility through the proper channels? And shouldn’t their proponents accept with good grace if they are democratically rebuffed? A closer look at the history of political thought can provide us with the framework to assess the case for and against the democratic reasonableness of contentious politics. (shrink)

A collection of classical and contemporary sources highlighting the radical potential of the individualist anarchist tradition.

Key accomplishments of political corporate social responsibility scholarship have been the identification of global governance gaps and a proposal how to tackle them. Political CSR scholarship assumes that the traditional roles of state and business have eroded, with states losing power and business gaining power in a globalized world. Consequently, the future of CSR lies in political CSR with new global governance forms which are organized by mainly non-state actors. The objective of the paper is to deepen (...) our understanding of political CSR and reintegrate notions of state power into political CSR scholarship by highlighting how states set the context within which business takes place, regulate offshore business practices, and play pivotal roles in new global governance mechanisms. (shrink)

Does greater CEO power come with more responsibility? Previous scholarly work in this field entails divergent results on this question. Based on the upper echelons theory and CEO power literature, this study aimed to explore the mechanisms underlying how different sources of CEO power, including structural, ownership, expert, and prestige power, affect firms’ corporate social responsibility (CSR) practices and whether such relationships are moderated by firm visibility. Using a panel dataset comprising 6604 yearly observations of (...) Chinese publicly traded firms from 2009 to 2019, we found that structural power is negatively related to CSR practices and that expert power is positively related to CSR practices, whereas ownership power and prestige power have no direct relationship with CSR practices. Our results show that firm visibility weakens the negative relationship between structural power and CSR practices and strengthens the relationship between expert power and CSR practices, respectively. Overall, this study reconciles the mixed results of previous studies on the impact of CEO power on CSR and integrates the effect of firm visibility as a contextual factor. This article concludes with practical recommendations on how to manage CSR engagement. (shrink)

The role of power and its relation to values has become a topic of growing interest in business ethics as well as in the literature of management and the sociology of organizations. Though there is more interest in the role and potential for abuse of power in corporations, the concept of power drawn from classical political theory and initial behavioral studies of power in organizations is inadequate for understanding the place, complexity and ethics of power (...) in the corporation. Analyses of power drawn from recent political theory can provide a more fine-grained and illuminating understanding of power than has been available from classical political theory and social science literature. I distinguish three approaches: the behavioral model commonly employed, the ideological model which comes out of the political theory of certain neo-Marxists, and what I call the disciplinary model drawn form Michel Foucault's analysis of modern forms of power. I suggest areas of working life and ethical issues about the relation between power and values that can be illuminated by these alternate analyses. (shrink)

Recent empirical work has offered strong support for ‘biased pluralism’ and ‘economic elite’ accounts of political power in the United States, according a central role to ‘business interest groups’ as a mechanism through which corporate influence is exerted. Here, we propose an additional channel of influence for corporate interests: the ‘policy-planning network,’ consisting of corporate-dominated foundations, think tanks, and elite policy-discussion groups. To evaluate this assertion, we consider one key policy-discussion group, the Council on Foreign Relations. (...) We first briefly review the origins of this organization and then review earlier findings on its influence. We then code CFR policy preferences on 295 foreign policy issues during the 1981–2002 period. In logistic regression analyses, we find that the preferences of more affluent citizens and the CFR were positive, statistically significant predictors of foreign policy outcomes while business interest group preferences were not. These findings are discussed with a consideration of the patterns of CFR ‘successes’ and ‘failures’ for the issues in our dataset. Although a full demonstration of a causal connection between corporate interests, the policy-planning network and policy outcomes requires further research, we conclude that this has been shown to be a plausible mechanism through which corporate interests are represented and that ‘biased pluralism’ researchers should include it in their future investigations. (shrink)

Sequences of individual words make up media reports. And sequences of media reports constitute the power of the news media to influence corporate practices. In this paper, we focus on the micro-foundations of news reports to elaborate how an atmosphere of negative news reports following an initial exposure of corporate pollution activity can help stop such activity through their impact on corporate managers. We extend our understanding of the corporate governance effect of news media by (...) considering two new aspects of reports—one, the proportion of words in negative reports relative to the total number of words in all reports; and two, the geographical origin of news media. We suggest that the more negative the media coverage, and the more local this coverage, the greater the impact on corporations. Our study of news media reports from more than 600 newspaper sources on disciplining pollution activities of listed Chinese firms from 2004 to 2012 provides strong support for our hypotheses. These findings have valuable implications for the handling of pollution issues in transitional economies via the power of news words. (shrink)

Ally-building can be an ethical pursuit in developing sources of power for the business manager. The commitment to social responsibility is a source of power, as well as an ethical practice for corporate endeavors. Pfeffer promotes a business manager's ability to develop effectiveness with ties to powerful others in an intra-organizational environment. This paper advances an analysis about how individuals in corporations may use an inter-organizational approach to developing sources of power through a notion of (...) class='Hi'>corporate social responsibility. As such, a more meaningful qualitative reciprocity between corporations and the communities in which they operate can be developed. And, this relationship develops a source of power for the individual involved in this effort. In other words, relationships with powerful others in the community could develop by revisiting CSR based on reciprocity and exchange of sustainability in a community, rather than on a notion of paternal responsibility to some particular construct in society. (shrink)

Moira Gatens investigates the ways in which differently sexed bodies can occupy the same social or political space. Representations of sexual difference have unacknowledged philosophical roots which cannot be dismissed as a superficial bias on the part of the philosopher, nor removed without destroying the coherence of the philosophical system concerned. The deep structural bias against women extends beyond metaphysics and its effects are felt in epistemology, moral, social and political theory. The idea of sexual difference is contextualised in _Imaginary (...) Bodies_ and traced through the history of philosophy. Using her work on Spinoza, Gatens develops alternative conceptions of power, new ways of conceiving women's embodiment and their legal, political and ethical status. (shrink)

An examination of animate from reveals corporeal archetypes that underlie both human sexual behavior and the reigning Western biological paradigm of human sexuality that reworks the archetypes to enforce female oppression. Viewed within the framework of present-day social constructionist theory and Western biology, I show how both social constructionist feminists who disavow biology and biologists who reduce human biology to anatomy forget evolution and thereby forego understandings essential to the political liberation of women.

The point of departure of David Ellerman's paper is that the role of labour in economics can be looked at in a fundamentally different way than has typically been the case. The paper's purpose is, therefore, oppositional. However, it cannot simply be dismissed. It is clearly articulated, well reasoned, and most importantly, thought provoking. It requires one to rethink how one conceives some basic issues in economics. As such, one does not need to be entirely convinced by the argument to (...) consider it worthy of dissemination. At the same time, if one subscribes to the ethic of structured or critical pluralism one must also consider the pressure points of the argument (see Dow, 2004; Dobusch and Kapeller, 2012). Below, I briefly reconstruct Ellerman's core claims and provide some comment on that argument. Read David Ellerman's paper "The Labour Theory of Property and Marginal Productivity Theory". (shrink)

By examining corporate social responsibility and power within the context of the food supply chain, this paper illustrates how food retailers claim to address food waste while simultaneously setting standards that result in the large-scale rejection of edible food on cosmetic grounds. Specifically, this paper considers the powerful role of food retailers and how they may be considered to be legitimately engaging in socially responsible behaviors to lower food waste, yet implement practices that ultimately contribute to higher levels (...) of food waste elsewhere in the supply chain. Through interviews with key actors in the Australian fresh fruit and vegetable supply chain, we highlight the existence of a legitimacy gap in corporate social responsibility whereby undesirable behaviors are pushed elsewhere in the supply chain. It is argued that the structural power held by Australia’s retail duopoly means that supermarkets are able to claim virtuous and responsible behaviors, despite counter claims from within the fresh food industry that the food supermarkets’ private quality standards mean that fresh food is wasted. We argue that the supermarkets claim CSR kudos for reducing food waste at the expense of other supply chain actors who bear both the economic cost and the moral burden of waste, and that this is a consequence of supermarkets’ remarkable market power in Australia. (shrink)