Realigning business, government and civil society: Emerging embedded relational governance beyond the (neo) liberal and welfare state models

Abstract

Purpose

This article aims to explore the character of an emerging model of corporate social responsibility (CSR)‐oriented societal governance in an exchange theoretical perspective and to examine the distinctive characteristics of the relations between civil society, business and government in the new model and the drivers behind it.

Design/methodology/approach

By analyzing typical roles and role‐sets in political, commercial and regulatory exchange, the article pin‐points characteristics of the embedded relational governance/CSR model contrasted against liberal governance and the Keynesian welfare state. The analysis is stylized and conceptually based, in line with the Weberian ideal type concept and brings out stylized juxtapositions of the three governance models based on previous studies.

Findings

An emerging model of corporate social responsibility (CSR) or embedded relational governance seems to share the basic market orientation of the liberal model, yet, at the same time, sharing many of the social and collective goals of the welfare state. This combination is apparently achieved by embedding the social dimension into civil society and self‐regulatory market processes. Finally, the paper reflects on the drivers behind the new governance approach, in the context of a globalizing economy. The paper argues that NGO‐driven communicative intermediation interfacing with an increasing CSR and corporate governance focus in financial evaluation may serve to retain some of the social agenda from the welfare state, under the CSR‐ or embedded‐relational model, an agenda that seemed to be gradually losing out with the global competitive exposure of the welfare state.

Research limitations/implications

The article presents a stylized analytical framework of CSR/embedded relational governance that lays a basis for further exploration and systematic testing through comparative empirical studies.

Practical implications

The paper brings out the interplay between political, regulatory and commercial processes and gives a broader understanding of the societal implications of CSR.

Originality/value

Original contributions of this paper: first, the analytical formulation of the societal governance implications of CSR; second, the exchange theoretical conceptualization of this mode of societal governance.

Citation

Midttun, A. (2005), "Realigning business, government and civil society: Emerging embedded relational governance beyond the (neo) liberal and welfare state models", Corporate Governance, Vol. 5 No. 3, pp. 159-174. https://doi.org/10.1108/14720700510604797