Modelling the Firm in its Market and Organizational Environment: Methodologies for Studying Corporate Social Responsibility

The study of corporate social responsibility (CSR) can best be mainstreamed within the wider social science literature if it is defined as firms voluntarily assuming responsibility for their externalities, thereby setting the puzzle of how this can be reconciled with the maximization of shareholder...

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Published inOrganization studies Vol. 27; no. 10; pp. 1533 - 1551
Main Author Crouch, Colin
Format Journal Article
LanguageEnglish
Published London, Thousand Oaks, CA & New Delhi SAGE Publications 01.10.2006
Sage Publications Ltd
Subjects
Online AccessGet full text
ISSN0170-8406
1741-3044
DOI10.1177/0170840606068255

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Abstract The study of corporate social responsibility (CSR) can best be mainstreamed within the wider social science literature if it is defined as firms voluntarily assuming responsibility for their externalities, thereby setting the puzzle of how this can be reconciled with the maximization of shareholder value as the central challenge of the subject. Means of resolving the puzzle require modelling the firm interacting with its environment as both a market actor and as an organization, and in particular through the interaction between these two. Such an approach has no need of a separate concept of ‘stakeholders’. The analysis develops through the firm's relations with actual and potential political action (raising the separate issue of corporate citizenship), and the tastes of consumers, investors and employees—the last raising interesting implications for principal–agent theory.
AbstractList The study of corporate social responsibility (CSR) can best be mainstreamed within the wider social science literature if it is defined as firms voluntarily assuming responsibility for their externalities, thereby setting the puzzle of how this can be reconciled with the maximization of shareholder value as the central challenge of the subject. Means of resolving the puzzle require modelling the firm interacting with its environment as both a market actor and as an organization, and in particular through the interaction between these two. Such an approach has no need of a separate concept of "stakeholders". The analysis develops through the firm's relations with actual and potential political action (raising the separate issue of corporate citizenship), and the tastes of consumers, investors and employees--the last raising interesting implications for principal-agent theory. [PUBLICATION ABSTRACT]
The study of corporate social responsibility (CSR) can best be mainstreamed within the wider social science literature if it is defined as firms voluntarily assuming responsibility for their externalities, thereby setting the puzzle of how this can be reconciled with the maximization of shareholder value as the central challenge of the subject. Means of resolving the puzzle require modelling the firm interacting with its environment as both a market actor and as an organization, and in particular through the interaction between these two. Such an approach has no need of a separate concept of ‘stakeholders’. The analysis develops through the firm's relations with actual and potential political action (raising the separate issue of corporate citizenship), and the tastes of consumers, investors and employees—the last raising interesting implications for principal–agent theory.
The study of corporate social responsibility (CSR) can best be mainstreamed within the wider social science literature if it is defined as firms voluntarily assuming responsibility for their externalities, thereby setting the puzzle of how this can be reconciled with the maximization of shareholder value as the central challenge of the subject. Means of resolving the puzzle require modelling the firm interacting with its environment as both a market actor and as an organization, and in particular through the interaction between these two. Such an approach has no need of a separate concept of 'stakeholders'. The analysis develops through the firm's relations with actual and potential political action (raising the separate issue of corporate citizenship), and the tastes of consumers, investors and employees-the last raising interesting implications for principal-agent theory. Reprinted by permission of Sage Publications Ltd
Author Crouch, Colin
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Snippet The study of corporate social responsibility (CSR) can best be mainstreamed within the wider social science literature if it is defined as firms voluntarily...
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SubjectTerms Citizenship
Consumers
Corporate governance
Corporate responsibility
Firm theory
Measurement
Organization theory
Organizational environment
Political action
Social responsibility
Stakeholder
Stockholders
Studies
Title Modelling the Firm in its Market and Organizational Environment: Methodologies for Studying Corporate Social Responsibility
URI https://journals.sagepub.com/doi/full/10.1177/0170840606068255
https://www.proquest.com/docview/222435604
https://www.proquest.com/docview/36581938
Volume 27
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