Corporate governance or governance by corporates? Testing governmentality in the context of China's national oil and petrochemical business groups

Like other industrial sectors with significant – ‘pillar’ – importance in China's overall economy and development, oil and petrochemicals are governed by state-owned business groups. In this context, ‘corporate governance’ of these groups is of fundamental interest. This study probes corporate governance of 31 national oil and petrochemical business groups by examining their structure, development and business activities in the period from 2007 to 2011. The post-1998 restructuring of China's qiyejituan business groups, their related party transactions and related party corporate finance all yield insight into how property rights are decisive in how corporate governance based on governmentality – or the interrelation of corporate, state and social relations – is structured. This study sheds light on how China's big business policy and governance of the state-business interface progresses in a socialist market economy. It has clear implications international trade and investment as well as multinational corporations doing business with China.     

After Henry: Continuity and Change in Ford Motor Company

Since 1979 the Ford Motor Co. has attempted to introduce fundamental changes in its corporate strategy, management structure and labour relations. This article focuses on the impact of corporate restructuring on the management of Ford UK. Significant changes in industrial relations and work organisation have been tempered by strong continuities with Ford's maintenance of its traditional management prerogative. The most profound changes have been achieved in product development which has moved from functional hierarchy towards project management. Ford's interpretation of Japanese ‘lean production’ has been a significant factor shaping Ford's corporate agenda in America and Europe.     

Robust strategies: lessons from GKN 1759–2013

GKN is Britain's surviving top 50 company from 1905, a flourishing world top-player in automotive and aero components. This article traces 254 years of its development, domestically and internationally, drawing on corporate access and the author's worldwide field research since 1974, and three in-depth business histories including one by the co-author. Lessons confirm just some traits expected of successful ‘Built To Last’ (BTL) companies. However, GKN's ‘robust’ sustained strategy also reflects financial conservatism; constant adaptation to its historical and competitive context; highly proactive internationalisation and, from 1902 onwards, a determination to develop always at least ‘three major business legs’ to survive evolutionary processes as sectors mature and consolidate globally.     

Identifying risks in emerging market sovereign and corporate bond spreads

This paper investigates the systematic risk factors driving emerging market (EM) credit risk by jointly modeling sovereign and corporate credit spreads at a global level. We use a multi-regional Bayesian panel VAR model, with time-varying betas and multivariate stochastic volatility. This model allows us to decompose credit spreads and build indicators of EM risks. A key result is that indices of EM sovereign and corporate credit spreads differ because of their specific reactions to global risks (risk aversion, liquidity and US corporate risk). For example, following Lehman's default, EM sovereign spreads ‘decoupled’ from the US corporate market, whereas EM corporates ‘recoupled.’     

Business policy,ethics and society

This section will cover (a) definition of business policy: strategic decisions in the enterprise; (b) ethical behaviour above and beyond the requirements of the law: what might this involve e.g. in respect of products and markets in which the business is prepared to operate? (c) does business have a responsibility towards ‘society’? For example, should businesses decide without being legally required to do so, to undertake activities which they think are in the national interest even if this may appear to conflict with strictly commercial interests? (d) if ethical/social decisions are required, who is to make them — at what levels of an enterprise — e.g. does the board make them all or are they also expected below board level? This section will also cover: (e) practical examples in the light of changing attitudes towards business and market behaviour in the 1980's and 1990's; (f) implications of attitudes towards corporate crime and of behaviour which may not be illegal but which may be regarded as ‘unacceptable’: this will be discussed with examples from experience in Australia and other countries. The section will first explain the meaning of the phrase ‘business policy’ and will briefly outline the kinds of strategic decision which have to be made in business enterprises. It will go on to consider whether there are things a business ‘ought’ or ‘ought not’ to do even if they are within the law. The section will illustrate these problems with examples in the light of changing attitudes towards business policy and market behaviour in the 1980's and 1990's. It will take into account some recent cases of corporate crime in Australia and elsewhere and also of behaviour which while neither against the law or outside the power of the board, might be thought ‘inappropriate’.     

Business performance and social media: Love or hate?

The social media space has become a common place for communication, networking, and content sharing. Many companies seek marketing and business opportunities via these platforms. However, the link between resources generated from these sites and business performance remains largely unexploited. Both managers and financial advisors can profit from the lessons learned in this study. We conceptualize four channels by which social media impacts financial, operational, and corporate social performance: social capital, customers’ revealed preferences, social marketing, and social corporate networking. An empirical test of our framework shows that ‘followers’ and ‘likes’ positively influence a firm's share value, but only after a critical mass of followers is attained. Our estimates suggest that Twitter is a more powerful tool to enhance business performance than Facebook.     

Why Companies Hire Lobbyists

A sample of those responsible in big businesses for hiring lobbyists was interviewed. ‘Propensity to hire’ depends on internal needs for services offered: on needs for access to decision-makers; for representation; and for policy advice and administrative support. Demand for services is not constant: even within one company, it is contingent on externalities. ‘Propensity to hire’ seems not to relate to corporate size. It depends on several factors: experience and capacity of corporate staff; supply side ativities by hired lobbyists (aka commercial lobbyists); the company's strategic position in the economy; expectations in their economic sector, and the challenges faced.     

Beneath good and evil?

The aim of this paper is to think business ethics with the help of philosopher Alain Badiou, focusing on Badiou's critique of ethics and the concepts of ‘event’, ‘truth’ and especially ‘subject’. Based mainly on review articles, I construct an understanding of business ethics (comprising corporate social responsibility and sustainability) and its history as a field of research. With the help of a framework developed from Badiou's work on ethics, I conduct a metacritique of business ethics as being intolerant (exclusion of voices), nihilist (concerned with necessity and economics), reactive (to social movements in the 1960s, arguing that there has always been an ethics of business) and obscure (building upon the atemporal body of knowledge in ethics). Opposed to these tendencies, with the help of the constructive Badiou, I argue that business ethics should move towards the creation of faithful subjects possibly formed by ‘inexistent’ research in the field, as well as concerning itself with closely studying and identifying empirical cases of faithful subject formations and their deviations.     

The limits of corporate responsibility standards

I explore the limits of corporate responsibility standards – for example Social Accountability 8000 (SA 8000), the Global Reporting Initiative, the Fair Labor Association workplace code – by looking at these initiatives through Derrida's aporias of justice as set out in ‘Force of Law: The “Mystical Foundation of Authority”’. Based on a discussion of SA 8000, I uncover the unavoidable aporias that are associated with the use of this standard. I contribute to the literature on corporate responsibility standards in general and SA 8000 in particular by showing (a) that attempts to standardise corporate responsibility can only be successful insofar as we recognise that compliance with SA 8000's rules requires a ‘fresh judgement’ every time they are applied, (b) that SA 8000 should not be pushed down the supply chain as such coercion does not require a truly responsible decision by suppliers and eventually leads to moral mediocrity and (c) that the necessarily time-consuming reflections about the singular contexts within which SA 8000 is applied challenge the urgent need for implementing this standard. I discuss the implications of my analysis of SA 8000 for corporate responsibility standards in general.     

Forward looking or looking unaffordable? Utilising academic perspectives on corporate social responsibility to assess the factors influencing its adoption by business

The paper demonstrates its ‘CSR at a tipping point’ thesis by juxtaposing views of corporate social responsibility (CSR) as essential for business and societal sustainability against those that see CSR as unaffordable or irrelevant in the current economic climate. Drawing from Kohlberg's seminal theory of moral development, CSR is conceptualised as the development of organisation moral reasoning, and the proposition is illustrated by demonstrating inter‐disciplinary similarities in levels of ethical concern within different approaches to the practice of marketing, human resource management (HRM) and performance management. Levels of concern for CSR are related to environmental and firm‐specific drivers and constraints that influence the CSR dynamic. Environmental influences on organisational CSR stances emanate from a range of stakeholder constituencies, while the importance accorded to CSR is also influenced by firm‐specific factors such as the organisation's stage of development, strategy and leadership. The paper's identification of inter‐disciplinary similarities in the varying levels of concern for CSR and its delineation of CSR drivers and constraints contribute to CSR theory, and these frameworks also represent analytical tools that managers can use to assess or to change an organisation's CSR stance. The multi‐level perspective on CSR adopted by the paper links an organisation's overall or ‘macro’ CSR stance to the ‘meso’ levels of CSR represented by practice within its specialist functions. It proposes that the ‘CSR at a tipping point’ proposition is assessed by utilising the conceptual model in the paper within a case‐study research design to determine whether specific organisations – identified as ‘CSR‐positive’ ones by their relatively high level of concern for stakeholder welfare – are changing the importance they accord to CSR as a result of the new business context, and the extent to which practice in their marketing, HRM and performance management functions are shapers or consequences of this.     

Conclusion: Korean business and management – the end of the model?

Recent financial crisis has raised questions about the underpinnings and longevity of economic success in Asia, and has reminded us to be sceptical of pundits and the eponymous populist predictions relating to the region. Several perspectives can guide the analysis and evaluation of industrialization, from ‘state’ versus ‘market’, ‘internal’ versus ‘external’, and ‘macro’ versus ‘micro’. Companies in Korea as ‘latecomers’ have pursued ‘catch-up’ strategies. However, Korean corporate capabilities reside in a restricted number of industries, firms and functions (production), and are poor elsewhere, such as in marketing, technology (design and development) and organization, and small and medium-sized enterprises. Furthermore, many factors regarded once as sources of Korea's success are now seen as weaknesses. The future challenges facing Korea include its dirigiste economy, organizational structures and governance, financial transparency and labour market flexibility. While there are undoubted problems, its urgent tasks are not insurmountable.     

Dual career couples: Individual and organizational implications

Since the introduction of the term ‘dualcareer’ family by Rapoport and Rapoport in 1969, an increasingly large body of literature concerning this phenomenon has developed — perhaps in response to the rapid growth of dual-careerism in North American Society. This literature is extremely diverse, ranging from purely ‘academic’ articles in the professional journals of economics, business, sociology, psychology, etc., to ‘self-help’ and ‘trade’ books such as The Two Career Couple by Hall and Hall; to ‘light’ articles in popular magazines such as Redbook, People, Good Housekeeping, etc. This paper reviews this literature and discusses the implications of the dual-career family structure from both the individual and the organizational points-of-view. Specifically, five major topic areas are covered: (1) advantages and disadvantages of the lifestyle, (2) marital satisfaction, (3) egalitarian relationships, (4) the impact of transfers, relocations and living apart, and (5) the employing organization's reaction to and adaption to the phenomenon.     

Corporate social responsibility as cultural meaning management: a critique of the marketing of ‘ethical’ bottled water

To date, the primary focus of research in the field of corporate social responsibility (CSR) has been on the strategic implications of CSR for corporations and less on an evaluation of CSR from a wider political, economic and social perspective. In this paper, we aim to address this gap by critically engaging with marketing campaigns of so-called ‘ethical’ bottled water. We especially focus on a major CSR strategy of a range of different companies that promise to provide drinking water for (what they name as) ‘poor African people’ by way of Western consumers purchasing bottled water. Following Fairclough's approach, we unfold a three-step critical discourse analysis of the marketing campaigns of 10 such ‘ethical’ brands. Our results show that bottled water companies try to influence consumers' tastes through the management of the cultural meaning of bottled water, producing a more ‘ethical’ and ‘socially responsible’ perception of their products/brands. Theoretically, we base our analysis on McCracken's model of the cultural meaning of consumer goods, which, we argue, offers a critical perspective of the recent emergence of CSR and business ethics initiatives. We discuss how these marketing campaigns can be framed as historical struggles associated with neo-liberal ideology and hegemony. Our analysis demonstrates how such CSR strategies are part of a general process of the reproduction of capitalist modes of accumulation and legitimation through the usage of cultural categories.     

Enough chit-chat,strike! Deliberation and agonism in corporate governance

This conceptual paper contributes to the critique of a body of literature that will be named ‘deliberative corporate governance’ by defending non-deliberative acts performed by stakeholders. It first argues that this literature introduces to the corporation a decision-making process where it does not belong, given the corporation's economic role. This leads to an ‘efficiency constraint’ on any attempt to justify deliberation – deliberative governance theorists must show that it is the most efficient and cost-effective way to address the issues that concern them. A real case example where deliberation would have been counter-productive in that regard will show that this is not the case. Building on this example, the paper uses the theory of democratic agonism to argue that non-deliberative acts should be part of governance. A sketch of managerial duties vis-à-vis such acts is attempted as well. The paper does not seek to reject deliberative corporate governance entirely, but rather to defend the importance of non-deliberative practices in addressing its theoretical concern. It makes a conceptual contribution to corporate governance theory, from which it draws practical implications for stakeholders-oriented management.     

Does a Virtual Like Cause Actual Liking? How Following a Brand's Facebook Updates Enhances Brand Evaluations and Purchase Intention

Studies have shown positive associations between liking a Facebook brand page and brand evaluations, but causal evidence is lacking. This online pre–post-measure experiment compared brand evaluations of ‘current followers’ of a target brand's Facebook page, with ‘new followers’ instructed to ‘like’ the page, and ‘non-followers’ over one month. Results showed a significant positive increase for new followers on brand evaluations, whereas non-followers showed no change. Current followers were most positive in evaluations overall, but showed no change over time. This provides evidence that following a brand's Facebook updates can cause positive changes in brand evaluations. The effects were explained by perceived conversational human voice, indicating the importance of brand interactivity. Implications for brands' social media presence are discussed.     

Commitment for hire? The viability of corporate culture as a MNC control mechanism

This paper discusses the effectiveness of corporate culture as a control mechanism in the multinational context. While there is widespread managerial support for its use, there is also considerable challenge to the idea that corporate culture can be ‘managed’. A review of relevant literature dealing with the internalisation of corporate values, organizational commitment, psychological ownership, and corporate identification provokes questions about the viability of corporate culture as a MNC control mechanism. Much depends on individual employee responses that range from support to outright resistance, and may be moderated by variables, such as managerial action and the extent of violation of the psychological contract. It is concluded that, in the long run, it may not be in the best interests of MNC management to have a strong corporate culture. A workforce of highly inculcated employees might, in fact, impede MNC management's need for strategic changes.     

Common good leadership in business management: an ethical model from the Indian tradition

While dominant management thinking is steered by profit maximisation, this paper proposes that sustained organisational growth can best be stimulated by attention to the common good and the capacity of corporate leaders to create commitment to the common good. The leadership thinking of Kautilya and Ashoka embodies this principle. Both offer a common good approach, emphasising the leader's moral and legal responsibility for people's welfare, the robust interaction between the business community and the state, and the importance of moral training of leaders in identifying and promoting the common good. We argue that the complex process of re‐orientating corporate priorities towards the common good requires alertness and concerted effort if both business and society are to truly benefit. As Ashoka said: ‘A good deed is a difficult thing’.     

Corporations as persons: Objections to goodpaster's ‘principle of moral projection’

Goodpaster's ‘principle of moral projection’ is intended to support a program of corporate moral improvement based on an analogy between persons and corporations. In this paper I try to show that the analogy breaks down at a crucial point — namely at the search for amotive for moral improvement. Further, the analogy may foster a tendency to suppose that corporations, like persons, have intrinsic value. I conclude that the analogy does more harm than good for the following reasons: (a) it distracts from the crucial question, which is, how can we motivate people to shape the institutions in which they work into morally better ones? and (b) it may reinforce a morally dangerous tendency to serve corporations for their own sakes.     

Consumer and Corporate Debt: A Neo‐Kaleckian Synthesis

We present a neo‐Kaleckian growth model with both consumer and corporate debt. The model's macrodynamic and stability characteristics differ from singleߚdebt models, yet some steadyߚstate results persist. For example, a surge in ‘animal spirits’ is good for steadyߚstate growth, and consumer borrowing can help to sustain aggregate demand. Stable steady states are characterized by a kind of ‘euthanasia of the rentier’. Consumer credit conditions influence effective demand, the profit rate and economic growth. Looser consumer credit conditions have a steadyߚstate growth effect and can enhance system stability. In this restricted sense, looser consumer credit conditions are good for macroeconomic stability.