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Q-Chat. rekenyia Teacher. Study with Quizlet and memorize flashcards containing terms like controversial, transparency, regulation and more.
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NO HIDING PLACE FOR THE IRRESPONSIBLE BUSINESS. By Alison Maitland. The food industry is blamed for obesity. Mobile phone operators are challenged to protect teenagers from online pornography. Record companies are attacked when they sue music-lovers for sharing illegal files on Internet.
No hiding place for irresponsible business. Log in. Sign up. Get a hint. controversial. Click the card to flip. arousing argument, dispute, or disagreement ...
- Proactive Path
- Institutionalization Phase
- Problematization Phase
- Adaptation Phase
- Reactive Path
The proactive pathFootnote 1 outlines an organization that intentionally side-steps responsible practices to take some opportunities for potential short-term profits, but proactively changes to distance itself from former irresponsible practices after the disclosure. It characterizes a financially healthy organization with an over-ambitious visiona...
Seeking Shady Profits
The proactive organization intentionally side-steps responsible practices and engages in shady practices to gain short-term advantages over competitors or for individual profit gain. Shady practices are, for example, non-transparent working practices, which cannot easily be uncovered. This is illustrated by the Chiquita case, with the paying of protection money to a terrorist group in Columbia, named AUC, “through its subsidiary, Banadex” (Chiquita, Case #4). To facilitate the shady practices...
Establishing a Loyal Bribery Network
The proactive organization outsources these irresponsible practices to subsidiaries, suppliers, or other external ombudsmen to fulfill their intentional side-stepping behavior and to protect their official image as a responsible organization. It builds up a loyal bribery network with powerful external stakeholders (e.g., other companies, government) and strengthens them by forming strategic alliances. It connects these powerful external stakeholders with each other, building an interwoven net...
Turning a Blind Eye on Inconvenient Practices
The top management of the proactive organization turns a blind eye on irresponsible pockets and indirectly approves the practices. Thus, this behavior reinforces the partial engagement in irresponsible practices. The blind eye results in a top management that does not act in a responsible neutral manner and relies on strong ties with powerful external stakeholders. This is exemplified by the Nike case where “managers refused to accept any responsibility for the various labour and environmenta...
Triggering Formation of Mnemonic Memory Traces
The exposure of the scandal gets the ball rolling by increasing external stakeholder attention (e.g., consumers, media) to irresponsible practices of the proactive organization. For example, in the Deutsche Bank case the former cooperating stakeholder who spied on managers “began a legal battle with Deutsche Bank, alleging that Breuer [former CEO] had violated German banking laws that prohibited financiers from making public comments about the financial status of their clients” (Deutsche Bank...
Unfreezing Irresponsible Practices
Besides the increasing media attention, investigations and detections of alleged irresponsible practices start. The increasing media attention and the investigations mutually reinforce each other while contributing to further unfreezing of irresponsible practices. This can be seen in the FIFA case when investigations started, “because of the 2010 awards of the World Cup to Russia and Qatar, and massive negative media publicity about FIFA management’s toleration of corruption, its internal wor...
Reaching High Organizational Consensus
But the proactive organization denies the accusations and does not understand the extent of the problematized practices. This is illustrated by the response of the Deutsche Bank top management, where “the bank denied the involvement of any of its senior executives in the spying operations.” Furthermore, they said in a statement that “the questionable methods used were not authorized by the supervisory board or the management board” (Deutsche Bank, Case #6). The blind eye of the top management...
Entering a Virtuous Cycle of Deep-Route Detachment
The problematization phase leaves visible traces in the proactive organization. It reflects upon and realizes the extant of its irresponsible violations and its consequential loss of trustworthiness. Thus, the struggling situation drives the organization to enter into a virtuous cycle of completely detaching and distancing themselves from the former pockets of irresponsibility. The detachment starts with self-reporting its irresponsible practices to fully unfreeze former irresponsible practic...
Selecting New Message Carriers
Besides the change of the core strategy, the proactive organization implements new structures and fills key positions with responsible message carriers for a heterogeneous top management structure. Nike, for example, “hired Maria Eitel from Microsoft as Nike’s first vice president of corporate responsibility.” One of her first proactive actions entailed sitting “down with the head of Global Exchange, one of Nike’s most outspoken critics” and introducing “a section on corporate responsibility...
Engaging in Positive Social Change
The proactive organization builds upon the deep-route detachment for further development of the “understanding of corporate responsibility in the larger community” by “moving beyond the policing stage” (Nike, Case #11). Organizations in this path form collaborative networks for innovation and responsibility in the industry and beyond. They proactively engage with external stakeholders to meet their expectations. Positive outcomes of the proactive initiatives represent innovative ethical produ...
The reactive pathFootnote 2 outlines an organization that institutionalizes irresponsible practices as how to do business to achieve an extensive increase of sales and resists to change its irresponsible practices after the disclosure. It characterizes an organization looking for extensive growth, embedded in a weak institutional infrastructure off...
- Jill A. Küberling-Jost
- jill.kueberling-jost@tuhh.de
- 2021
This paper takes a different approach. We seek to explain why companies engage in CSR, but we do not focus directly on the link to financial performance. Instead, we investigate the proposition that companies engage in CSR in order to offset corporate social irresponsibility (CSI).
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Jul 14, 2023 · Our abductive analysis enables us to develop theoretical perspectives emphasizing the importance of CPA and stakeholder characteristics in the forgetting and recalling of irresponsible corporate behaviors.
