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The Proactive Corporation: Its Nature and Causes
Authors:Jon M. Shepard  Michael Betz  Lenahan O'Connell
Affiliation:(1) Department of Management, Virginia Polytechnic Institute and State University, Blacksburg, VA, 24061-0233, U.S.A
Abstract:We argue that the stakeholder perspective on corporate social responsibility is in the process of being enlarged. Due to the process of institutional isomorphism, corporations are increasingly adopting organizational features designed to promote proactivity over mere reactivity in their stakeholder relationships. We identify two sources of pressure promoting the emergence of the proactive corporation -- stakeholder activism and the recognition of the social embeddedness of the economy. The final section describes four organizational design dimensions being installed by the more proactive corporations today -- cooperation, participation, negotiation, and direct anticipation.
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