CORPORATE GOVERNANCE, RESPONSIBLE MANAGERIAL BEHAVIOR, AND CORPORATE SOCIAL RESPONSIBILITY: ORGANIZATIONAL EFFICIENCY VERSUS ORGANIZATIONAL LEGITIMACY?

Filatotchev, I. & Nakajima, C. (2014). CORPORATE GOVERNANCE, RESPONSIBLE MANAGERIAL BEHAVIOR, AND CORPORATE SOCIAL RESPONSIBILITY: ORGANIZATIONAL EFFICIENCY VERSUS ORGANIZATIONAL LEGITIMACY?. ACADEMY OF MANAGEMENT PERSPECTIVES, 28(3), doi: 10.5465/amp.2014.0014

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Abstract

Building on corporate social responsibility (CSR), corporate governance research and institutional theory, this paper explores inter-relationships between the firm’s corporate governance, responsible leadership and CSR approaches in different institutional contexts. We present a critique of corporate governance research grounded in agency theory with its focus on CSR as mere compliance with rules and regulations. We link different leadership orientations and CSR approaches to two key process dimensions of corporate governance related to monitoring and incentives. This analysis builds on previous research that differentiates between governance mechanisms based on “strategic” as opposed to “financial controls”, and explains how these types of control may be related to responsible managerial behavior and the firm’s CSR strategies. Building on governance studies grounded in sociology and organizational theory we further argue that links between CSR strategies and corporate governance factors such as boards of directors, ownership patterns and executive incentives may differ depending on the legal system and institutional characteristics in a specific country. Our discussion suggests that researchers need to develop a more holistic, institutionally embedded governance framework to analyze organizational approaches to CSR.

Item Type: Article
Uncontrolled Keywords: Business And Management
Divisions: Cass Business School > Faculty of Management
URI: http://openaccess.city.ac.uk/id/eprint/6761

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