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State Governance Beyond the ‘Shadow of Hierarchy’: A social mechanisms perspective on governmental CSR policies


Schneider, Anselm; Scherer, Andreas Georg (2019). State Governance Beyond the ‘Shadow of Hierarchy’: A social mechanisms perspective on governmental CSR policies. Organization Studies, 40(8):1147-1168.

Abstract

The extent to which state authorities can regulate the externalities and the behaviour of multinational corporations (MNCs) is limited. This is especially true when MNCs operate in or do business with fragile states that lack the willingness and/or resources to effectively and legitimately regulate businesses. However, MNCs often engage in private regulation to remedy some of the problems that unregulated business behaviour creates. In this article we examine what limits the effectiveness and legitimacy of the contributions made by MNCs to global governance. We explore the mechanisms that state authorities in functioning states can use to overcome these barriers as well as the boundary conditions of these mechanisms at both company and government levels. We provide a framework for governmental CSR policies and describe the ways in which functioning states engage in governance beyond the ‘shadow of hierarchy’ and directly or indirectly influence business conduct beyond the territory in which their legal regulations can be enforced.

Abstract

The extent to which state authorities can regulate the externalities and the behaviour of multinational corporations (MNCs) is limited. This is especially true when MNCs operate in or do business with fragile states that lack the willingness and/or resources to effectively and legitimately regulate businesses. However, MNCs often engage in private regulation to remedy some of the problems that unregulated business behaviour creates. In this article we examine what limits the effectiveness and legitimacy of the contributions made by MNCs to global governance. We explore the mechanisms that state authorities in functioning states can use to overcome these barriers as well as the boundary conditions of these mechanisms at both company and government levels. We provide a framework for governmental CSR policies and describe the ways in which functioning states engage in governance beyond the ‘shadow of hierarchy’ and directly or indirectly influence business conduct beyond the territory in which their legal regulations can be enforced.

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Additional indexing

Item Type:Journal Article, refereed, original work
Communities & Collections:03 Faculty of Economics > Department of Business Administration
Dewey Decimal Classification:330 Economics
Scopus Subject Areas:Social Sciences & Humanities > Strategy and Management
Social Sciences & Humanities > Organizational Behavior and Human Resource Management
Social Sciences & Humanities > Management of Technology and Innovation
Language:English
Date:28 March 2019
Deposited On:25 Sep 2019 14:15
Last Modified:29 Jul 2020 11:22
Publisher:Sage Publications
ISSN:0170-8406
OA Status:Green
Publisher DOI:https://doi.org/10.1177/0170840619835584
Other Identification Number:merlin-id:18314

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