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1 – 6 of 6Suzanne J. Konzelmann, Victoria Chick and Marc Fovargue-Davies
The debate about corporate purpose is a recurring one that has re-emerged today. What should be the guiding principles of business: the pursuit of profit or a contribution to…
Abstract
The debate about corporate purpose is a recurring one that has re-emerged today. What should be the guiding principles of business: the pursuit of profit or a contribution to public interest? We trace key elements in this debate in Britain and America, from the interwar years, when John Maynard Keynes and Adolf Berle made important contributions, to the 1970s, when events ushered in a return to laissez-faire and the rise to dominance of the shareholder primacy model of corporate governance and purpose, to today. Both the earlier and the current debates are centered around whether we see business institutions as strictly private entities, transacting with their suppliers, workers, and customers on terms agreed with or imposed upon these groups, or as part of society at large and therefore expected to contribute to what society deems to be its interests. Whether current developments will ultimately produce a shift in corporate purpose akin to the one that followed the Second World War remains to be seen. But the parallels to the interwar debates, and the uncertain economic, political, and social environments in which they took place, are striking. Our objective is to see what might be learned from the past to inform the current direction of thought concerning capitalism and corporate purpose.
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Simon Deakin, Richard Hobbs, Suzanne Konzelmann and Frank Wilkinson
Prevailing patterns of dispersed share ownership and rules of corporate governance for UK listed companies appear to constrain the ability of managers to make credible, long‐term…
Abstract
Prevailing patterns of dispersed share ownership and rules of corporate governance for UK listed companies appear to constrain the ability of managers to make credible, long‐term commitments to employees of the kind needed to foster effective labour‐management partnerships. We present case study evidence which suggests that such partnerships can nevertheless emerge where product market conditions and the regulatory environment favour a stakeholder orientation. Proactive and mature partnerships may also be sustained where the board takes a strategic approach to mediating between the claims of different stakeholder groups, institutional investors are prepared to take a long‐term view of their holdings, and strong and independent trade unions are in a position to facilitate organisational change.
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Renate E. Meyer, Stephan Leixnering and Jeroen Veldman
For more than a century, the corporation has shaped our thinking of organizations. This deeply institutionalized form is still regarded as both the iconic business organization…
Abstract
For more than a century, the corporation has shaped our thinking of organizations. This deeply institutionalized form is still regarded as both the iconic business organization and the core structural unit of our economic order. Today, however, it stands at a crossroads. Economic, social, and environmental failures of the recent past as well as misconduct and scandals are widely linked to inadequacies in this corporate form and its governance. The aim of this volume is to spark a debate within the field. In this introduction, we provide an outline of the current crisis and an overview of the interdisciplinary set of articles presented in this volume. We conclude with a view ahead and a plea for the acknowledgement of “alternatives.”
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Bo Enquist, Bo Edvardsson and Samuel Petros Sebhatu
Following this introduction, this paper presents two conceptual and theoretical analyses – (i) CSR and its relation to profit and charity (ii) CSR as part of a service business…
Abstract
Following this introduction, this paper presents two conceptual and theoretical analyses – (i) CSR and its relation to profit and charity (ii) CSR as part of a service business model. The paper then illustrates these concepts using a comparative study of four service firms, with particular emphasis on their different CSR activities and how these affect the mission of each company. All four of the service companies are global actors with strong Service Brands (Edvardsson, Enquist and Hay, 2006) and a leading position in using CSR as a driving force for doing business: IKEA, Starbucks, H&M and the Body Shop. The paper then draws together the conceptual analysis and the case studies in a discussion of how CSR can be a proactive driver in the service business. Because of the limit space for a QMOD paper the focus is on the conceptual and theoretical analysis part and the empirical part and discussion/conclusion has to be further developed.
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Suzanne Young and Vijaya Thyil
The purpose of this paper is to propose a new model of corporate governance that is holistic – incorporating internal and macro perspectives across legal, regulatory…
Abstract
Purpose
The purpose of this paper is to propose a new model of corporate governance that is holistic – incorporating internal and macro perspectives across legal, regulatory, sociological, ethical, human resource management, behavioural and corporate strategic frameworks. Researchers have signalled the need for “new theoretical perspectives and new models of governance” due to a dearth of research that is context‐driven, empirical, and encapsulating the full spectrum of reasons and actions contributing to corporate crises.
Design/methodology/approach
The approach consists of theory building by reviewing the literature and examining the gaps and limitations.
Findings
The proposed model is a distinctive contribution to theory and practice in three ways. First, it integrates the firm‐specific, micro factors with the country‐specific, macro factors to illustrate the holistic nature of corporate governance. Second, shareholders and stakeholders are shown to be only one component of the model. Third, it veers away from singular approaches, to dealing with corporate governance using a multi‐disciplinary perspective. The paper argues that such a holistic and integrated view is a necessity for understanding governance systems.
Research limitations/Implications
The challenge is to operationalize the model and test it empirically.
Practical implications
The model is instructive and of use for practitioners in attempting to understand, explain and develop governance models that are appropriate to their national and industry settings.
Originality/value
This paper argues that narrow‐based models are limited in their approach and in a sound and integrative review of the up‐to‐date literature contributes to theory‐building on corporate governance.
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