Corporate citizenship and social responsibility in a globalized world

This article addresses the rise of corporate citizenship in the context of the changes in the nature of individual citizenship and the emergence of new, non‐territorial forms of national identity that are occurring in the current era of intensifying globalization. It also ponders the power of corporate citizens and the role they play in the prevailing global governance framework, as well as the extent to which they can behave responsibly and pursue sustainable development goals. More generally, the article discusses the limits to corporate social responsibility and the extent to which capitalism can be ‘caring’. The argument advanced is that, by virtue of their very nature, transnational corporations (TNCs) cannot become fully responsible and accountable citizens. Nonetheless, they can be induced to transform themselves in ways that may be compatible with socially and environmentally desirable objectives. Lastly, the article explores paths for action and, in particular, the potential of NGOs and anti‐globalization social movements to become civil regulators able to push for the introduction of binding rules and regulations and the construction a governance framework capable of restraining and harnessing the power of TNCs.     

Maximizing shareholder value: a new ideology for corporate governance

The decade-long boom in the US stock market and the more recent boom in the US economy have fostered widespread belief in the economic benefits of the maximization of shareholder value as a principle of corporate governance. In this paper, we provide an historical analysis of the rise of shareholder value as a principle of corporate governance in the United States, tracing the transformation of US corporate strategy from an orientation towards retention of corporate earnings and reinvestment in corporate growth through the 1970s to one of downsizing of corporate labour forces and distribution of corporate earnings to shareholders over the past two decades. We then consider the recent performance of the US economy, and raise questions about the relation between the maximization of shareholder value and the sustainability of economic prosperity.     

Motivation of politicians and long-term policies

We analyze the motivation of politicians in democracies when long-term policies are socially desirable. Politicians receive utility from holding office and from the success of their projects. We refer to the two extreme types of politicians as “populists” and “policy success-seekers”. One result is that inefficiencies in the political process are smaller when a politician is of the populist type. When politicians offer incentive contracts, the problem of inefficient decision-making may be solved. The amount of money necessary to induce the incumbent to undertake the socially optimal project decreases with the degree of populism he displays.     

Why most private hospitals are nonprofit.

In recent decades, restrictions that have been imposed on hospitals organized for profit have served to restructure the industry, generating a constant trend toward nonprofit organizations. Small proprietary hospitals in particular have disappeared while corporate chains have come to dominate what is left of the for-profit hospital sector. The trend toward nonprofit hospitals is not explained by the failure of the health service markets and is not the result of a desire to serve the public interest more effectively. Although a number of arguments have been advanced to explain the shift, the hypothesis that seems most consistent with the existing evidence is that the nonprofit form of organization serves most effectively to strengthen the restrictive character of the market for physicians' services and thereby to serve the individual economic interests of the physicians.     

Citizens,Partners or Patrons? Corporate Power and Patronage Capitalism

Abstract

The addition of new social roles in public service and civil society to large business corporations' enormous economic power and substantial political influence suggests novel but little-understood changes in the institutional relations between business, state and civil society. Sociological emphasis on the centrality of power relations in business conduct and radical diagnoses of a corporate ‘take-over’ of public and civil society institutions is contradicted by other literature which portrays corporations as socially responsible benefactors rather than all-powerful behemoths. The present analysis assesses rival emphases on power relations and normative shifts toward corporate social responsibility in the sphere of business–civil society partnerships. It argues that, in the United States and Britain, a new set of institutional relationships is emerging to fill a vacuum in tackling social and environmental problems. In this new institutional field, large corporations are taking on the role of patrons to a variety of clients amongst public and civil society organisations. This social relationship parallels similar episodes of patronage when systems of community and public welfare disintegrated during the rise of capitalism.     

Some Implications of Corporate Taxation for Rent-Seeking Activity

In this paper we show that corporate taxes are likely to have considerable implications for rent-seeking activity. We find that corporate taxation tends to significantly reduce rent-seeking, and that it favors rent-seeking by established firms and discriminates against new and zero profit firms. Indeed, we show that corporate tax regulations may completely block rent-seeking by new corporations, and that rent-seeking competitions may be characterized by an equilibrium that features a small number of profitable and well established firms. Tax regulations may therefore impart an oligopolistic tendency to rent-seeking markets. Moreover, our results may have significant implications for the effects of corporate taxes on patent races, tournaments, and other first-past-the-post competitions.     

Puerto Rico: Climates for investments∗

How do we determine what are the motives of US leaders when they intervene in other countries either directly with US armed forces or indirectly with surrogate forces? Rather than accepting the policymakers' claims at face value, we can look for patterns of intervention: what kinds of governments and political movements do US leaders support? What kind do they oppose and seek to destroy? And what socioeconomic goals do they pursue upon successfully intervening? Rather than seeing US policy as befuddled and contradictory, we observe that it is often remarkably consistent in services rendered on behalf of transnational corporate global domination. Other policy considerations do come into play during times of intervention, but there is no reason to treat them as mutually exclusive of economic motives.     

Corporate values of the 25 largest European banks: Exploring the ambiguous link with corporate scandals

Corporate value statements communicate what a firm aspires for and what drives their value creation. In addition, corporate values often also define which behaviors are acceptable and which are not. Ideally, corporate values are representations of a firm's informal corporate values and organizational culture. However, in practice, there is an inherent tension between the aspirations and actual values and ensuing behaviors of and within a firm—let alone the potentially different interpretations of abstract corporate value statements. In this paper, we set out to provide more clarity on what corporate values are, how they are inherently ambiguous, and how in practice they compare to firm involvement in scandals. For this purpose, we study the corporate values of the 25 largest European banks after the financial crisis. “Integrity” appeared to be the most common value among the 25 banks, followed by “customer focus.” Nonetheless, over the past 6 years, 15 out of the 25 studied banks were involved in one or more scandals. Scandals can be systematic or caused by rogue employees, and benefitting the firm or their customers—in the latter case, providing an interesting interpretation of the customer focus value. Additionally, we found that courage or its synonyms were barely mentioned among banks' corporate values, potentially providing an additional explanation for the fast size of the financial crisis. Finally, we found that banks that had inclusive social principles such as respect, solidarity, and equality did not face large-scale scandals.     

Capitalist profit calculation and inflation accounting

How are profits calculated under capitalism? This paper discusses the forms of profit calculation that have been put forward by the accounting profession to deal with the problem of inflation. In so doing it also raises the issue of the disjuncture between the calculation of profit made by the capitalist enterprise/ firm and that generally associated with Marx and subsequent Marxist writings. Finally, the paper addresses the wider issue opened up by the debate about ‘inflation accounting’; in particular the question of the legal constitution of corporate trading bodies and the control of the flow of investible money- capital within the economy.     

"Bru-u-u-uce": The simple economics of mob goods

This paper provides a pure economic rationale for chronic excess demand for tickets to events like rock concerts. The model focuses on "mob goods", which are consumed jointly with crowd reaction, or "noise". Whereas the primary commodity is provided by the seller, the joint product is provided collectively by buyers. If propensities to make noise are inversely correlated with reservation prices and a capacity constraint applies, excess demand (queuing) is a necessary condition for profit maximization. One important implication is that anti-scalping laws may be welfare-increasing. The paper explores other applications in professional sports, restaurants, and on-stage theatre.     

Imperial subjects,national citizenship,and corporate subjects: cycles of political participation/exclusion in the modern world‐system

This article examines the cycles of political participation/exclusion in modern history. It juxtaposes three cycles of political participation/exclusion—the imperial subject, national citizenship, and corporate subject—with three cycles in the structure of accumulation—the imperialist/colonialist, nationalist, and globalist structures of accumulation. The article argues that the contemporary system of accumulation has dismantled the nation state as the vehicle of economic development and diluted citizenship through neoliberal policies. With eroding state protection, working class people are subordinated to corporations for jobs, consumption, investment, and culture. In order to counter this situation and to achieve emancipation from the capitalist pursuit of profit and rampant consumerism, it is necessary to create alternatives to the contemporary corporate‐dominated system. The article explores sustainable community development as an alternative.     

The Commons: A Social Form that Allows for Degrowth and Sustainability

This theoretical article opens with the reconstruction of a value-critical argument which claims that capitalism is a form of society that is structurally unsustainable. The reason for this is the need for ever-increasing value production which stems from the core of capitalism (the commodity form, competition, profit maximization, private production) and its internal and external limits. Based on this, the article calls for a fundamental social transformation and positions the commons as a social form that has the potential to replace the commodity form as societal foundation. Constituted by social practices (commoning) that are based on voluntariness, autonomy and needs-satisfaction, commons do not have an inbuilt growth compulsion. Therefore, the article concludes, the commons may enable humanity to deal with the question of sustainability on the basis of social structures that include the possibility of a solution.     

Corporate Pluralism in Danish Law-Making*

This article investigates the pattern of corporate political representation in Danish law-making. The most important finding is a large intra-system variation in scope, level, and structure of outside involvement. There is no evidence of an emerging 'total' system of corporate political representation. The dominant pattern is still one of a diversified use of several channels of access by a large variety of groups, organizations, and institutions. While the importance of organized interests is well documented, it is questionable to what extent this indicates a pattern of societal corporatism in the political system. Interest organizations play an important role in pluralist societies as well, and Philippe Schmitter's main point about representational monopoly does not gain support. Generally, the analysis tends to support a model of pluralist corporate representation.     

Who is Punished? Conditions Affecting Voter Evaluations of Legislators Who Do Not Compromise

In American politics, legislative compromise is often seen as a necessary and desirable aspect of policymaking, yet people also value politicians who stick to their positions. In this article, we consider these conflicting expectations of legislators and ask two intertwined questions: what conditions lead people to punish legislators for not compromising (when legislative action is at stake) and, conversely, what conditions leave people more willing to overlook a legislator’s unwillingness to engage in compromise? Relying on previous research, we suggest that legislator gender, legislator partisanship, and issue area may all affect which legislators are punished for not compromising. Relying on two national experiments, we demonstrate that the extent to which lawmakers are punished for not compromising is conditional on the intersection of the three factors in this study. In general, our results suggest that people may be most willing to overlook unwillingness to engage in compromise when party, gender and issue ownership align than when party, gender, and issue ownership are at odds.     

Greening of business: A step towards sustainability

The rising awareness of consumers regarding the adverse effects of the ever increasing ecological footprint has given rise to green consumerism. The idea is often encouraged but it can be enhanced only by a collective effort of consumers, firms, and governments. The article builds on the existing literature on green consumerism where it is, by and large, misconceived to be unidirectional—such that the burden of reducing human impressions on ecosystem falls only on the shoulders of consumers. The study reasons about the need for consumer initiatives to be supported with relevant policies and regulations from the government and through socially responsible corporate actions. The authors explore multiple dimensions of green consumerism and analyze in detail the scope and reach of green business practices in our ongoing strive to sustainability. The article highlights the actions required from the firms to make use of the opportunities provided by green consumerist ideas and the evolving consumer base. It explores the ways in which a business can adopt to become socially responsible by reaching green consumers. The article further identifies the need and impact of green marketing for eco-friendly products, to penetrate to the expanding consumer base.     

公德缺失和公德重建的社会心理分析——北京市民社会公德调查的思考

文章在对北京市民的公德状况进行调查的基础上,对市民公德缺失的社会心理原因和社会公德重建的社会心理基础进行了分析,提出目前社会公德缺失的主要原因,同时指出传统文化中对个人修养的强调和现代公共精神的日益成长等因素是现阶段社会公德建立的社会心理基础,并对社会公德建设提出了相关建议。     

The evaluation of corporate contributions

This paper reviews the rationales expressed by businessmen for corporate philanthropy as an alternative to both individual charity and government provision of some types of charitable services. Three hypotheses explaining the aggregate level of corporate giving are then tested. The paper concludes with a list of potential hypotheses to be tested about corporate philanthropy when the data become available.     

CORPORATE TAX CUTS AND FOREIGN DIRECT INVESTMENT

Accurate policy evaluation is central to optimal policymaking, but difficult to achieve. Most often, analysts have to work with observational data and cannot directly observe the counterfactual of a policy to assess its effect accurately. In this paper, we craft a quasi‐experimental design and apply two relatively new methods—the difference‐in‐differences estimation and the synthetic controls method—to the policy debate on whether corporate tax cuts increase foreign direct investment (FDI). The taxation–FDI relationship has attracted wide attention because of mixed findings. We exploit a quasi‐experimental design for Russian regions, which were granted autonomy to reduce corporate profit tax in 2003, enabling them to simultaneously experiment with different tax policies. We estimate both the average and local treatment effects of two types of tax cuts on FDI inflows. We find that, on average, relative to the absence of tax cuts, nondiscriminatory tax cuts on direct investment profit increase FDI, but discriminatory tax cuts on selected government‐sanctioned investment projects do not. Yet for both types of tax cuts, local treatment effects vary dramatically from region to region. Our research has important implications for the design of tax policy and fiscal incentive, and the assessment of fiscal policy reforms.     

哈贝马斯言语行为三重功能模式理论

哈贝马斯的社会批判理论通过言语行为的机制协调功能约束主体间的行为,从而实现从话语结构角度解释社会的目的,进而回答了社会秩序何以可能的经典之问。研究哈贝马斯言语行为三重功能模式理论,必须要思考三个问题:第一,是什么的问题,即哈贝马斯所主张的三重功能模式理论的具体内容是什么;第二,为什么是的问题,即为什么是言语行为使主体间达成共识,而不是权力、货币或其他相关媒介;第三,如何是的问题,即言语行为如何使主体间达成共识。