Advanced Search
MyIDEAS: Login

Globalization, CSR and business legitimacy in local relationships

Contents:

Author Info

  • Sundström, Agneta
Registered author(s):

    Abstract

    The business-society relationship is commonly viewed from a legitimacy perspective and refers to how society grants power over resources needed by business for survival and success. With globalization, business's need for traditional societal legitimacy has changed, which has made the social consequences of business actions more obvious. Corporate social responsibility (CSR) has emerged as a global trend, presenting various social motives and economic gains for business to voluntarily establish and maintain relationships with society. Confusion remains, as to whether corporations’ engagement in social issues is based on altruism or whether they act out of their own self-interest to increase profits. Because globalization has changed business’s need for societal legitimacy, this thesis proposes that economic motives play a central role in how businesses take social responsibility. The aim of this thesis is to investigate how globalization affects the local relationships that previously legitimated businesses, and how these changes initiate processes and responsibilities that affect both business and societal development. This thesis is based on case study research and central to the thesis is company towns with their long tradition of close socioeconomic business-society relationships, which are influenced by a new economic situation. For company towns, globalization with the ensuing reduced need of local labor has meant decreased economic motives for business to maintain local relationships. To contrast the findings regarding company towns, cooperative enterprises (CEs) cases are also looked at. For CEs, increased competition has meant increased economic motives to engage in CSR arrangements. The findings show that as long as the economic benefits of local relationships are positive, businesses engage in CSR to legitimate their business. If business economic motives and commitment to CSR cease to exist (legitimacy transformation), local relationships react passively (Paper I) and shift to philanthropic efforts and seek interests outside local community (legitimacy transition, Paper II). The more stable business and local relationships are, the easier it is for business and local stakeholders to collaborate and share experience to solve social issues (legitimacy maintenance, paper III). The more complex business economic motives are (Paper IV), the more collaborative and flexible efforts are required to take CSR (legitimacy differentiation). The findings in particular also show how business benefits from CSR collaboration since their economic resources can be directed and used more efficiently.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://pub.epsilon.slu.se/1967/
    Download Restriction: no

    Bibliographic Info

    Paper provided by Swedish University of Agricultural Sciences, Department of Economics in its series Department of Economics publications with number 1967.

    as in new window
    Length:
    Date of creation: 2009
    Date of revision:
    Handle: RePEc:sua:ekonwp:1967

    Contact details of provider:
    Postal: Box 7013, 750 07 UPPSALA
    Phone: 018-67 1724
    Fax: 018-67 3502
    Web page: http://www.slu.se/ekonomi
    More information through EDIRC

    Related research

    Keywords:

    References

    No references listed on IDEAS
    You can help add them by filling out this form.

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:sua:ekonwp:1967. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Alejandro Engelmann).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.