Business-society Relationship Research Articles

Peace polysemy in business and peace agendas

This article presents an empirical study that delves into the complex dynamics of business–society relationships in fragile postconflict contexts. It addresses a crucial question: How does the interpretation of peace shape business and peace agendas? Our qualitative case study of Colombia, involving 41 stakeholder interviews and document analysis, focuses on the department of Antioquia. This region is undergoing a transformative process through the Development Programs with a Territorial Approach, known as PDET. These instruments aim to stabilize and transform conflict-affected regions, thereby contributing to peacebuilding in the country. Our findings reveal three distinct types of business and peace agendas, each rooted in different interpretations of peace: those that are direct, indirect, or independent from the government peace agendas. We propose an approach for tracing peace polysemy and establishing a minimal convergence between peace agendas, offering practical implications for decision-makers. We contribute to business and peace studies and identify promising avenues for future research.

Contesting social responsibilities of business: Centring context, experience, and relationality

This introduction, and the special issue on ‘Contesting social responsibilities of business: Experiences in context’ it frames, addresses the neglected question of the experience of contestation in the terrain of the social responsibilities of business. It re-conceptualises the social responsibilities of business by advancing research grounded in a relational perspective, exploring and highlighting different forms of contestation of these social responsibilities, and centring the role of context by focusing especially on contestation in overlooked geographical settings and sites of marginalisation. Contextualising contestation in this way centres silenced and/or ignored voices, generates meaningful theory, and offers an innovative critical lens on business–society relations.

The Enterprise at the Service of Society in the 21st century

The Enterprise at the Service of Society in the 21st century

Corporate Philanthropy and CEO Outside Directorships Under Authoritarian Capitalism

Scholars have long suggested that CEOs can benefit from corporate philanthropy. However, little is known about this relationship in contexts of authoritarian capitalism such as China, where the state not only uses its control of economic entities to pursue social goals but also plays a key role in CEOs’ careers. We theorize how corporate philanthropy among state-controlled firms increases the CEO’s likelihood of receiving career benefits from the state in the form of outside directorships. Outside directorships represent an important form of social capital in the Chinese context, and corporate philanthropy is an important mechanism through which social capital can be acquired. In addition, we theorize how two factors—the degree of state ownership and the number of independent directors on the CEO’s board—moderate this relationship. Analyzing a 12-year panel of state-controlled, publicly-listed firms in China comprising 6,594 firm-year observations, we find general support for our ideas. In so doing, we contribute to scholarship on the business–society relationship and corporate governance in the context of authoritarian capitalism.

Purpose framing as an informal governance approach to sustainability transformations in the private sector

Today's sustainability challenges require significant transformative shifts in the private sector, particularly driven by new, potentially also more informal, forms of governance. A variety of sustainability-oriented intermediary organisations encourage and support businesses to become purpose-driven to address social and environmental sustainability issues beyond maximising profit. We conduct interviews with these intermediaries to theorise how and why the broad concept of purpose might be used as an informal means to steer and transform business-society relations. We find that by invoking notions of systemic goal alignment and individual goal alignment, the simultaneous use of two contrasting but complementary frames allows intermediaries to appeal to and potentially engage a variety of audiences in their efforts to changing businesses and the economic system. Our research contributes to literatures on how the framing of purpose in business is used as an informal governance approach for driving a sustainability transformation.

The platformization of digital philanthropy in China: State, tech companies, and philanthropy engineering

Although there may be disagreement about the consequences of technology, such as the Internet, on Chinese philanthropy, there is consensus that giant tech companies have profoundly reshaped the field. One outcome is that this has led to the rise of digital philanthropy. The extant studies on the impact of the Internet on philanthropic practices tend to be limited to investigations of a specific platform (e.g. Weibo), while overlooking the heterogeneity of tech-empowered digital philanthropy in China. This study is an introduction to the diversity and the platformization of digital philanthropy. We use a snowball sampling online survey (n = 2132) to examine people’s attitudes towards digital philanthropy to understand user perceptions of some of the most common digital philanthropy platforms and products. The sample captures more educated mobile phone users already active on digital platforms. Based on the results, we categorize and discuss the three most mentioned types of digital philanthropy products: event-based products, issue-based products, and gamified mini-programs. We provide some insight on how these philanthropic products are engineered to blur the boundaries between online and offline activities to leverage tech companies’ mega platforms. The platformization of digital philanthropy has potential consequences for the evolving state–business–society relationship.

Adam Smith, just commercial society and corporate social responsibility

This paper engages Adam Smith’s reflections concerning the moral and economic dimensions of business–society relations in the context of the Multinational Corporation (MNC). The paper argues that Smith formulates a pronounced moral criticism of prevailing corporate business practices, which emphasize profit while de facto undermining the moral underpinnings and social cohesion of commercial society. Rather than simply promoting selfish profit maximization by individuals, businesses, and society at large, Smith’s work reveals a deeply entangled analysis of the complex interplay between material interests, moral aspects of human behavior, and Smith’s overall goal of broad socioeconomic welfare. The balancing of moral and material motivations requires the social embeddedness of economic exchange within normative community frameworks. In this context, the sociopsychological process of moral approbation via Smith’s impartial spectator mechanism has the potential to temper humans’ tendency for excessive (material) self-love. Smith’s scrutiny of internationally active corporations problematizes a range of institutional and governance issues and their implications for the moral bonds between individuals, MNCs, and global society. Most importantly, Smith worries about the potentially negative impact of increasingly anonymous and emotionally distant economic relationships between market participants on their ability to reckon with the moral consequences of their actions. Building on Smith’s entangled perspective, the paper proposes a normatively grounded framework to critically contend with contemporary efforts to redefine corporate citizenship in the global economy.

The Role of the Mobile Telecommunications Industry in Relation to the Former Afghan State and the Taliban

The study focuses on the mobile telecommunications industry in Afghanistan prior to the Taliban takeover in late 2021, and seeks to study how the mobile telecommunications corporations engage with the different area-specific governance systems in order to gain legitimacy to operate across Afghanistan. The study capitalises on mixed qualitative data to conduct an embedded case study of the Afghan mobile telecommunications industry as an extreme context for understanding business-society relations in South Asia. Theoretically, the article integrates insights from governance literature on areas of limited statehood to conceptualise business–society relations in Afghanistan beyond state-centric views and assumptions. The findings result in two modalities of business engagement that are conceptualised as a single vis-à-vis multiple governance system approach. Each of these modes of engagement implies a political nature and role for the businesses that are embedded in ethical dilemmas as discussed in the article. These findings contribute to the debate on the ‘political turn’ in the CSR literature and the governance literature on areas of limited statehood.

A National Governance Approach to the Political Nature and Role of Business: Case Study of the Mobile Telecommunications Industry in Afghanistan

The study focuses on the mobile telecommunications industry in Afghanistan prior to the Taliban takeover of the country in 2021 and seeks to study how the mobile telecommunications corporations engage with the different area-specific governance systems in order to gain legitimacy to operate across Afghanistan. The study capitalises on mixed qualitative data to conduct an embedded case study of the Afghan mobile telecommunications industry as an extreme context for understanding business-society relations in South Asia. Theoretically, the article integrates insights from governance literature on areas of limited statehood to conceptualise business–society relations in Afghanistan beyond state-centric views and assumptions. The findings result in two modalities of business engagement that are conceptualised as a single vis-à-vis multiple governance system approach. Each of these modes of engagement implies a political nature and role for the businesses that are embedded in ethical dilemmas as discussed in the article. These findings contribute to the debate on the ‘political turn’ in the CSR literature and the governance literature on areas of limited statehood.

A stakeholders' attributions approach to integrating normative, descriptive, and instrumental corporate social responsibility

AbstractAlthough there is an extensive body of research that empirically examines the antecedents and outcomes of corporate social responsibility (CSR), much less attention has been accorded to theory development that would suggest why firms engage in CSR, when, and how these initiatives pay off. In this paper, we propose an integrated model of the relationships among the ethical base for engaging in CSR, the pragmatic reality of business–society relationships, and firm strategic outcomes (e.g., normative, descriptive, and instrumental CSR, respectively). Specifically, we consider that a firm's ethical approach to CSR informs the actions and practices through which the firm pragmatically interacts with society. We argue that stakeholders interpret a firm's social performance as reaffirming, repairing, reinforcing, or reducing their perceptions of the firm's reputation—leading to attributions of trust/suspicion that affect firm outcomes. We conclude with the implications of our framework for future research and managerial practice.

The Role of Purpose in Supporting Sustainability Transitions

There is growing recognition that today’s grand challenges and wicked problems require significant transformative shifts in business practices and governance. The purpose ecosystem is an emerging phenomenon of new private sector actors seeking to promote wider systems change by driving and supporting the creation of purpose-driven businesses. In this paper, we conduct interviews with members of the purpose ecosystem to theorise how the general notion of purpose is used as an informal means to govern and transform business-society relations in the 21st century. We find that purpose ecosystem actors employ “double framing” in their explanations and justifications of focusing on purpose. By invoking both notions of “systemic subservience” and “humanistic goal-alignment”, we propose that the simultaneous use of two contrasting, but complementary frames allows actors to appeal to and potentially unite a variety of diverse audiences. Double framing therefore emerges as an innovative rhetorical device used to mobilise and steer private sector actors. Our research contributes to literatures on how purpose is used as a lever to drive sustainability transformations as well as the significance of framing within values-based governance.

The evolving path of CSR: toward business and society relationship

PurposeThis paper takes a critical look at the meaning of corporate social responsibility (CSR) based on the available literature on the subject matter. As CSR is an evolving concept both in meaning and practice, this study aims to highlight CSR actions of the world's six largest organizations (Google, Twitter, Amazon, Apple, ExxonMobil and Walmart). The purpose of choosing these organizations and their CSR adoption was to examine the business-society relationship and the role of key stakeholders in establishing this association.Design/methodology/approachThis study examined CSR through the case study approach and provides valuable insights by showing that CSR is a connecting link between business and society. Specifically, the authors took a crucial look at various contentious, often ambiguous definitions, theoretical framework, brief historical development, issues and controversies surrounding it, the role of CSR in community development and summing it up with the future direction and managerial implications.FindingsThis study observed that there are some developmental strategies taking place today which are relevant to the issue at stake, such as: contributing to the world economy, corporations donating or engaging in a wide range of philanthropic gestures now than ever and contributing to the beauty of the society by meeting rising community expectations.Originality/valueBy analyzing the worlds' 6 largest companies' CSR initiatives, this study provides valuable insights by showing that CSR is a connecting link between business and society and is based on win-win collaborations between civil society, business, investors and government. These companies' CSR initiatives have been mostly unexplored in past studies.

Governance and Business-Society Relations in Areas of Limited Statehood: An Introduction

In this introductory article we explore the relationship between statehood and governance, examining in more detail how non-state actors like MNCs, international NGOs, and indigenous authorities, often under conditions of extreme economic scarcity, ethnic diversity, social inequality and violence, take part in the making of rules and the provision of collective goods. Conceptually, we focus on the literature on Areas of Limited Statehood and discuss its usefulness in exploring how business-society relations are governed in the global South, and beyond. Building on insights from this literature, among others, the four articles included in this special issue provide rich illustrations and critical reflections on the multiple, complex and often ambiguous roles of state and non-state actors operating in contemporary Syria, Nigeria, India and Palestine, with implications for conventional understandings of CSR, stakeholders, and related conceptualizations.

It’s Not Just About the Mafia! Conceptualizing Business–Society Relations of Organized Violence

While there is some scholarship in management and organization studies on forms of organized violence, it has rarely focused on the role of organized violence within wider business–society and gove...

Any Act, Any Harm, To Anyone: The Transformative Potential of 'Human Rights Impacts' Under the UN Guiding Principles on Business and Human Rights

The concept of ‘adverse human rights impacts’ introduced by the UN Guiding Principles on Business and Human Rights is frequently used in institutional, activist and scholarly discourse. However, the term is under-explored and usually equated with ‘human rights violation’, occluding its transformative potential. This article demonstrates its expansiveness and rationale: ‘impacts’ cover any business act which removes or reduces an individual’s enjoyment of human rights. The formula is designed to capture business acts that are not paradigmatically understood as human rights violations but that nonetheless cause harmful outcomes. This can encompass, inter alia, acts which reduce market access to essential goods, harm caused by business-related tax abuse, and business contributions to climate change. The extra-legal concept provides an authoritative argumentative framework through which social understandings of business-related harm can evolve and can underlie a transformative shift in the business-society relationship.

The Enduring State: An analysis of governance-making in three mining conflicts

This article investigates the profound ambiguity of the state in the organization of contemporary business–society relations. On the one hand, there has been a decisive shift from government to governance, encouraging private actors, such as corporations, communities and NGOs, to address social and environmental concerns themselves, i.e. without the state’s involvement. On the other hand, however, the continued importance and relevance of the organized state is difficult to ignore. In this article we examine the role of the state in three cases of mining conflicts in Chile, one of the world’s most important mining countries. Through longitudinal, qualitative research of conflictive mining governance relations between state organizations, large corporations and local communities, we show that the modes of influence conducted by the Chilean state oscillate between direct, central steering (‘cathedral’) and indirect, dispersed vouching (‘bazaar’). Elaborating on Foucault’s concept of governmentality, we offer a hybrid theory of state organization, where the dematerialization of the state’s responsibility is seen not as the norm but rather as a particular mode of governance that sits alongside the underestimated, yet enduring, material involvement of the state.

Examining the Wates Principles for Large Private Companies As a Social Contract for Business-Society Relations

In December 2018, a Corporate Governance Code aimed at large private companies was unveiled, the culmination of an industry-led effort in producing a set of best practices in large private companies. These standards would also facilitate compliance with the mandatory obligation for large companies, whether public or private, to publicly disclose their corporate governance arrangements. The reform introduced to require mandatory disclosure of large companies’ corporate governance arrangements followed from a significant corporate failure, BHS, in 2016. Although significant corporate failures in the UK have given rise to both business and social concerns, the UK has always looked to improving corporate governance as a proportionate remedy. The development of corporate governance policy incorporates government, business and wider collaboration, a tradition that has continued in the production of the Wates Principles for Large Private Companies. This soft law instrument is however part of wider corporate governance reforms, and large private companies that choose to adopt the Principles are asked to ‘apply and explain’. We argue that the ‘corporate governance’ solution to the problems posed by large private companies with a significant social footprint places the Wates Principles at the interstices of public-private and the economic versus ethical framing of the firm. Ultimately we argue that the ‘corporate governance’ solution cannot be understood or framed merely in the conventional theoretical paradigm of a private and economic nature. There is a need to situate the Principles within an alternative theoretical framework and we argue that the theoretical framework of the social contract is apt for analysing the Wates Principles. We derive a set of benchmark norms according to our preferred theoretical framework in order to evaluate the Wates Principles. We argue that the Principles ultimately fall short of the social expectations for the corporate governance of large private companies.

Researching the history of marginalized issues in management research

PurposeThe design and implementation of an interpretive framework to study historically marginalized issues in management is a distinct area of research. This paper aims to propose a multi-method interpretive framework, integrating a historiographical approach and an archival investigation, and use the case of business responses to disability in colonial and post-independence India to elucidate the proposed framework.Design/methodology/approachThis paper provides a summary of a proposed framework for the historical study of marginalized social issues using an interpretive paradigm. It also outlines the advantages and limitations of the proposed framework.FindingsThis paper makes a methodological contribution in multi-method interpretive research design for the historical study of socially constructed issues, neglected because of deep prejudice and social exclusion, that offer complex challenges for modern businesses seeking inclusive workplace strategies.Originality/valueThis paper proposes a research framework that contextualizes social issues in history (historiographical study) and cases of business responses to these issues (archival study) for the examination of historically marginalized issues in the business–society relationship.

The Corporate Legitimacy Matrix – A Framework to Analyze Complex Business-Society Relations

Corporate Social Responsibility (CSR) is a concept suggesting that good business is about more than maximizing profit. In order to achieve social legitimacy a corporation must pay attention to a complex web of values and relations, and different CSR strategies and policies can be viewed as ways to manage this complexity. The corporate legitimacy matrix introduced in this article represents the strive for social legitimacy as a balancing act along three lines: a) The sustainability dimension: Balancing economic, social and environmental considerations, b) The stakeholder dimension: Balancing considerations of stakeholders at the local, national and global level, and c) The trust dimension: Balancing rational argumentation, credibility and emotional appeal. This article explores these three aspects of corporate legitimacy and how they are related. It is intended as a theoretical contribution towards a better understanding of the relationship between CSR and corporate legitimacy, as well as a practical tool to support the analysis of actual corporate legitimacy challenges.

Old wine in new bottles? Parentalism, power and its legitimacy in business-society relations

This article proposes a theoretical re-conceptualization of power dynamics and their legitimation in contemporary business-society relations using the prism and metaphor of parentalism. The paper d...