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The New Political Role of Business in a Globalized World: A Review of a New Perspective on CSR and its Implications for the Firm, Governance, and Democracy
Open accessAbstract
Scholars in management and economics widely share the assumption that business firms focus on profits only, while it is the task of the state system to provide public goods. In this view business firms are conceived of as economic actors, and governments and their state agencies are considered the only political actors. We suggest that, under the conditions of globalization, the strict division of labour between private business and nation‐state governance does not hold any more. Many business firms have started to assume social and political responsibilities that go beyond legal requirements and fill the regulatory vacuum in global governance. Our review of the literature shows that there are a growing number of publications from various disciplines that propose a politicized concept of corporate social responsibility. We consider the implications of this new perspective for theorizing about the business firm, governance, and democracy.
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“As Scherer and Palazzo (2011, p. 907) remind us, 'corporate managers are neither elected by the public', nor are their actions 'controlled by democratic institutions and procedures'.”
From Make Social Media Social Again: How Platform Interoperability Can Fix Social Media and Future‐Proof Democracy (2026) · cites this paper as Scherer and Palazzo (2011)
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Metadata
- Authors
- Scherer, A. G., & Palazzo, G.
- Affiliations
- University of Zurich (CH)
- University of Lausanne (CH)
- Corresponding author
- Scherer, Andreas Georg
- Venue
- Journal of Management Studies
- Publisher
- Wiley
- Published
- 2011-04-27
- Volume
- 48
- Issue
- 4
- Pages
- 899-931
- ISSN
- 0022-2380 (ISSN-L)
- 1467-6486
- OpenAlex
- W2122387224
- Cited by
- 2,131
- References
- 296
- Citations by year
- 2026: 118 · 2025: 114 · 2024: 142 · 2023: 149 · 2022: 147 · 2021: 158 · 2020: 209 · 2019: 194 · 2018: 173 · 2017: 140 · 2016: 122 · 2015: 129 · 2014: 125 · 2013: 104 · 2012: 72
- FWCI
- 193.09
- Type
- journal article
- Language
- en
- Open access
- hybrid
- doi.org
- Licence
- public-domain
- onlinelibrary.wiley.com/termsAndConditions#vor (vor)
- Locations
- Journal of Management Studies (publishedVersion, public-domain)
- IRIS (submittedVersion)
- SERVAL (Université de Lausanne) (submittedVersion)
- Zurich Open Repository and Archive (University of Zurich) (submittedVersion)
- Funders
- City University of New York
- Topics
- Social Sciences › Business, Management and Accounting › Strategy and Management › Corporate Social Responsibility Reporting
- Social Sciences › Business, Management and Accounting › Organizational Behavior and Human Resource Management › Corporate Social Responsibility and Sustainability
- Social Sciences › Political Science and International Relations › Globalization and political ideologies
- Keywords
- corporate social responsibility, business and politics, globalization, global governance, regulatory vacuum, theory of the firm, governance, democracy, state-business relations, public goods
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