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Contribution Details

Type Journal Article
Scope Discipline-based scholarship
Title State Governance Beyond the ‘Shadow of Hierarchy’: A social mechanisms perspective on governmental CSR policies
Organization Unit
Authors
  • Anselm Schneider
  • Andreas Scherer
Item Subtype Original Work
Refereed Yes
Status Published in final form
Language
  • English
Journal Title Organization Studies
Publisher Sage Publications
Geographical Reach international
ISSN 0170-8406
Volume 40
Number 8
Page Range 1147 - 1168
Date 2019
Abstract Text The extent to which state authorities can regulate the externalities and the behaviour of multinational corporations (MNCs) is limited. This is especially true when MNCs operate in or do business with fragile states that lack the willingness and/or resources to effectively and legitimately regulate businesses. However, MNCs often engage in private regulation to remedy some of the problems that unregulated business behaviour creates. In this article we examine what limits the effectiveness and legitimacy of the contributions made by MNCs to global governance. We explore the mechanisms that state authorities in functioning states can use to overcome these barriers as well as the boundary conditions of these mechanisms at both company and government levels. We provide a framework for governmental CSR policies and describe the ways in which functioning states engage in governance beyond the ‘shadow of hierarchy’ and directly or indirectly influence business conduct beyond the territory in which their legal regulations can be enforced.
Digital Object Identifier 10.1177/0170840619835584
Other Identification Number merlin-id:18314
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