Mainstream theorizing in management and economics is based on the assumption that business firms focus on profits only, while it is the task of the state system to provide public goods and to regulate the economy in such a way that business activities contribute to the common good. Business firms are conceived of as private actors and governments and their state agencies are considered the only political actors. We suggest that under the conditions of globalization the strict division of labor between private business and nation state politics does not hold any more. Many business firms have started to assume social and political responsibilities that go beyond legal requirements and fill the regulatory vacuum in global governance. Therefore, we advocate a paradigm shift in research on the role of business in society.