New PDF release: Public Forces and Private Politics in American Big Business

By Timothy Werner

ISBN-10: 1107022916

ISBN-13: 9781107022911

What are the political motivations in the back of companies' judgements to undertake regulations that self-regulate their habit in a way that's past compliance with country, federal and native legislations? Public Forces and personal Politics in American sizeable company advances a brand new knowing of the company as a political actor that expands past the constrained conceptualizations provided by way of economists and association theorists. Timothy Werner develops a normal thought of personal politics that's confirmed utilizing 3 case experiences: the surroundings, homosexual rights and government reimbursement. utilizing the conclusions of those case reports and an research of interviews with executives at 'Fortune 500' agencies, Werner reveals that politics can give a contribution considerably to our knowing of company decision-making on deepest regulations and company social accountability within the usa.

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Sample text

These studies less frequently examine virtue’s role and largely ignore potential political motivations. As noted in Chapter 2, in an attempt to make sense of the accumulated literature on economic justifications for private policies, Orlitzky, Schmidt, and Rynes (2003) reanalyzed much of the CSR-related management literature from the 1970s onward. They concluded that companies with excellent financial performance are the most likely to initiate CSR activity, that companies that practice CSR enter into a virtuous cycle in which their CSR performance and their financial performance reinforce one another, and that the effects of this cycle on a firm’s reputation drive the relationship, not managerial preferences for virtuous behavior.

In contrast to those who view private policymaking as a rearguard action, Potoski and Prakash (2005) argue that firms actively participate in industry-wide self-regulation with the intent of influencing external actors and building their reputations. The existing evidence is mixed as to which of these motivations (defensive or offensive) has more explanatory power. Although The Economist in its 2005 survey found that 61 percent of the surveyed executives believed that CSR helped their bottom lines through brand enhancement, it is not entirely clear whether those answering this question viewed enhancement as burnishing an existing reputation strategically or as constructing a new or stronger corporate brand.

In particular, this last form of feedback highlights how the private choices made by firms in response to public forces restructure the political environment and thus alter the options and opinions of public institutions and the mass public, respectively. Each of these three feedback mechanisms will be seen, as either an intended or unintended consequence of private policymaking in the cases to come, and I return to the broader idea of feedback and more thoroughly outline its potential material and interpretive impacts on contentious and private politics, as well as avenues for future research, in the conclusion.

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Public Forces and Private Politics in American Big Business by Timothy Werner

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