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 in | Organization studies Vol. 27; no. 10; pp. 1533 - 1551 |
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Main Author | |
Format | Journal Article |
Language | English |
Published |
London, Thousand Oaks, CA & New Delhi
SAGE Publications
01.10.2006
Sage Publications Ltd |
Subjects | |
Online Access | Get full text |
ISSN | 0170-8406 1741-3044 |
DOI | 10.1177/0170840606068255 |
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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. |
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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. 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. Reprinted by permission of Sage Publications Ltd |
Author | Crouch, Colin |
Author_xml | – sequence: 1 givenname: Colin surname: Crouch fullname: Crouch, Colin email: colin.crouch@wbs.ac.uk organization: University of Warwick, UK |
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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 |
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