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Reconsidering the Legitimacy and Efficiency of Corporate Strategies: A Case for Organizational Democracy


Schneider, Anselm; Scherer, Andreas (2019). Reconsidering the Legitimacy and Efficiency of Corporate Strategies: A Case for Organizational Democracy. In: Beschroner, Thomas; Sales, Arnaud. Corporate Social Responsibility – Institutional and Organizational Perspectives. Cham: Springer Nature Switzerland AG, 77-96.

Abstract

In this article, we argue that in the contemporary globalized economy business firms face two interrelated challenges that result from the growing complexity and dynamics of corporate environments increasing threats to corporate legitimacy and growing efficiency problems. As a result, corporate legitimacy and efficiency are potentially weakened. We specifically explore the communicative requirements for tackling both the problems of organizational legitimacy and of efficiency. On this basis, we suggest to make business firms subject to democratic processes based on stakeholder participation and open communication. The partial democratization of business firms can serve as a corrective to the dominant economic logic underlying corporate structures and processes by simultaneously addressing economic and moral considerations and by enhancing both efficiency and legitimacy.

Abstract

In this article, we argue that in the contemporary globalized economy business firms face two interrelated challenges that result from the growing complexity and dynamics of corporate environments increasing threats to corporate legitimacy and growing efficiency problems. As a result, corporate legitimacy and efficiency are potentially weakened. We specifically explore the communicative requirements for tackling both the problems of organizational legitimacy and of efficiency. On this basis, we suggest to make business firms subject to democratic processes based on stakeholder participation and open communication. The partial democratization of business firms can serve as a corrective to the dominant economic logic underlying corporate structures and processes by simultaneously addressing economic and moral considerations and by enhancing both efficiency and legitimacy.

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Additional indexing

Item Type:Book Section, refereed, original work
Communities & Collections:03 Faculty of Economics > Department of Business Administration
Dewey Decimal Classification:330 Economics
Language:English
Date:2019
Deposited On:21 Aug 2019 10:15
Last Modified:04 Feb 2020 10:59
Publisher:Springer Nature Switzerland AG
ISSN:2211-2707
ISBN:978-3-030-15405-9
OA Status:Closed
Free access at:Publisher DOI. An embargo period may apply.
Publisher DOI:https://doi.org/10.1007/978-3-030-15407-3_4
Other Identification Number:merlin-id:14167

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