Skip to main content

Organizational Legitimacy as Deliberation: Towards a New Political Role of the Business Firm

  • Chapter
Individuum und Organisation
  • 3137 Accesses

Abstract

Legitimacy can be understood as the conformation with social norms, values, and expectations (Oliver 1996). It is subjectively perceived and ascribed to actions or institutions by social construction (Berger/Luckman 1966). Legitimacy is vital for organizational survival as it is a precondition for the continuous flow of resources and the sustained support by the organization’s constituents (Parsons 1960; Pfeffer/Salancik 1978; Weber 1978). Persons or institutions who lose legitimacy find it difficult to enter into processes of social exchange as their partners do not rely on their compliance with social rules.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 69.99
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 74.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  • Ashforth, B. E.; Gibbs, B. W. (1990): The Double-edge of Organizational Legitimation. In: Organization Science, 1: 177–194.

    Google Scholar 

  • Beck, U. (1992): Risk Society. Towards a New Modernity. Thousand Oaks, CA.

    Google Scholar 

  • Beck, U. (2000): What is globalization? Cambridge, UK.

    Google Scholar 

  • Beck-Gernsheim, E.; Beck, U. (2002): Individualization: Institutionalized Individualism and its Social and Political Consequences. London.

    Google Scholar 

  • Benhabib, S. (1993): Situating the Self: Gender, Community, and Postmodernism in Contemporary Ethics. New York.

    Google Scholar 

  • Berger, B. L.; Luckmann, T. (1966): The Social Construction of Reality: A Treatise on the Sociology of Knowledge. New York.

    Google Scholar 

  • Berle, A. A.; Means, G. C. (1932): The Modern Corporation and Private Property. New York.

    Google Scholar 

  • Block, F. (1994): The Roles of the State in the Economy. In: Smelser, N. J.; Swedberg, R. (Hg.): The Handbook of Economic Sociology. Princeton, N.J.: 691–710.

    Google Scholar 

  • Bohman, J. (1998): The Coming Age of Deliberative Democracy. In: Journal of Political Philosophy, 6(4): 400–425.

    Article  Google Scholar 

  • Boli, J.; Thomas, G. M. (Hg., 1999) Constructing World Culture: International Nongovernmental Organizations since 1875. Stanford, Calif..

    Google Scholar 

  • Calton, J. M.; Kurland, N. B.: (1996): A Theory of Stakeholder Enabling: Giving Voice to an Emerging Postmodern Praxis of Organizational Discourse. In: Boje, D. M.; Gephart, R. P.;. Thatchenkery, T. J. (Hg.): Postmodern Management and Organization Theory. Thousand Oaks, CA: 154–180.

    Google Scholar 

  • Calton, J. M.; Payne, S. L. (2003): Coping With Paradox. In: Business and Society, 42(1): 7–42.

    Article  Google Scholar 

  • Carroll, A.B. (1979): A Three-Dimensional Conceptual Model of Corporate Performance. In: Academy of Management Review, 4: 497–505.

    Article  Google Scholar 

  • Carroll, A. B. (1998): The Four Faces of Corporate Citizenship. In: Business and Society Review, 100(1): 1–7.

    Article  Google Scholar 

  • Cohen, J. (1989): Deliberation and Democratic Legitimacy. In: Hamlin, A.; Pettit, P. (Hg.): The Good Polity: Normative Analysis of the State. Oxford: 17–34.

    Google Scholar 

  • Dahl, R. A. (1967): Democracy in the United States. Chicago.

    Google Scholar 

  • Deetz, S. (1995): Transforming Communication, Transforming Business: Building Responsive and Responsible Workplaces. Cresskill, N.Y.

    Google Scholar 

  • DiMaggio, P. J.; Powell, W. W. (1983): The Iron Cage Revisited: Institutional Isomorphism and Collective Rationality in Organizational Fields. In: American Sociological Review, 48: 147–160.

    Article  Google Scholar 

  • Doh, J. P.; Teegen, H. (2004): Globalization and NGOs. Transforming Business, Governments, and Society. Westport, Conn.

    Google Scholar 

  • Donaldson, T.; Preston, L. (1995): The Stakeholder Theory of the Corporation: Concepts, Evidence, and Implications. In: Academy of Management Review, 20: 65–91.

    Article  Google Scholar 

  • Donaldson, T.; Dunfee, T. (1999): Ties That Bind: A Social Contract Approach to Business Ethics. Boston.

    Google Scholar 

  • Dowling, J.; Pfeffer, J. (1975): Organizational Legitimacy: Social Values and Organizational Behaviour. In: Pacific Sociological Review, 18: 122–136.

    Google Scholar 

  • Dryzek, J. S. (1999): Transnational Democracy. In: Journal of Political Philosophy, 7(1): 30–51.

    Article  Google Scholar 

  • Dryzek, J. S. (2001): Legitimacy and Economy in Deliberative Democracy. In: Political Theory, 29: 651–669.

    Article  Google Scholar 

  • Dubbink, W. (2004): The Fragile Structure of Free-market Society. In: Business Ethics Quarterly, 14(1): 23–46.

    Google Scholar 

  • Easton, D. (1969): A Systems Analysis of Political Life. Chicago.

    Google Scholar 

  • Economist (2005): The Good Company. In: Economist Jan., 22, 2005: 3–18

    Google Scholar 

  • Elster, J. (1986): The Market and the Forum: Three Varieties of Political Theory. In: Elster, J.; Hylland, A. (Hg.): Foundations of Social Choice Theory. Cambridge: 103–132Epstein, E.M.: 1972, “The Historical Enigma of Corporate Legitimacy. In: California Law Review 60, 1701-1718.

    Google Scholar 

  • Epstein, E. M.; Votaw, D. (Hg., 1978): Rationality, Legitimacy, and Responsibility. Santa Monica.

    Google Scholar 

  • Fombrun, C. J. (2001): Corporate Reputations as Economic Assets. In: Hitt, M.; A., Freeman, R. E.; Harrison, J. S. (Hg.): 2001, The Blackwell Handbook of Strategic Management. Oxford: 289–312.

    Google Scholar 

  • Friedman, M. (1962): Capitalism and Freedom. Chicago.

    Google Scholar 

  • Friedman, M. (1970): The Social Responsibility of Business is to Increase its Profit. In: The New York Times Magazine, 13 September, Reprinted in: Donaldson, T.; Werhane, P. H. (Hg.): 1988, Ethical Issues in Business. A Philosophical Approach. Englewood Cliffs: 217-223.

    Google Scholar 

  • Fung, A. (2005): Deliberation Before the Revolution. In: Political Theory, 33: 397–419.

    Article  Google Scholar 

  • Gutman, A.; Thompson, F. (1996): Democracy and Disagreement. Cambridge, Mass.

    Google Scholar 

  • Habermas, J. (1990): Discourse Ethics: Notes on a Program of Philosophical Justification. In: Habermas, J.: Moral Consciousness and Communicative Action. Cambridge, Mass: 43–115.

    Google Scholar 

  • Habermas, J. (1993): Remarks on Discourse Ethics. In: Habermas, J.: Justification and Application: Remarks on Discourse Ethics. Cambridge, Mass.: 19–111.

    Google Scholar 

  • Habermas, J. (1996): Between Facts and Norms. Cambridge, Mass.

    Google Scholar 

  • Habermas, J. (1998a): On the Internal Relation between the Rule of Law and Democracy. In: Habermas, J.: The Inclusion of the Other. Studies in Political Theory. Cambridge, Mass.: 253–264.

    Google Scholar 

  • Habermas, J. (1998b): Three Normative Models of Democracy. In: Habermas, J.: The Inclusion of the Other. Studies in Political Theory. Cambridge, Mass.: 239–252.

    Google Scholar 

  • Habermas, J. (2001): The Postnational Constellation. Cambridge, Mass.

    Google Scholar 

  • Hannan, M. T.; Carroll, G. R. (1992): Dynamics of Organizational Populations: Density, Legitimation and Competition. Oxford.

    Google Scholar 

  • Harman, W.; Porter, M. (Hg., 1997): The New Business of Business: Sharing Responsibility for a Positive Global Future. San Francisco.

    Google Scholar 

  • Hayek, F. v. (1960): The Constitution of Liberty. London.

    Google Scholar 

  • Henderson, P. D. (2001): Misguided Virtue. False Notions of Corporate Social Responsibility. London.

    Google Scholar 

  • Hertz, N. (2001): Better to Shop Than to Vote? In: Business Ethics: A European Review, 10: 190–193.

    Article  Google Scholar 

  • Hillman, A. J.; Keim, G.; Schuler, D. (2004): Corporate Political Activity: A Review and Research Agenda. In: Journal of Management, 30: 837–857.

    Article  Google Scholar 

  • Huntington, S. P. (1998): Clash of Civilizations and the Remaking of World Order. New York.

    Google Scholar 

  • Hurst, J. W. (1970): The Legitimacy of the Business Corporation in the Law of the United States, 1780-1970. Charlottesville.

    Google Scholar 

  • Jensen, M. C. (2002): Value Maximization, Stakeholder Theory, and the Corporate Objective Function. In: Business Ethics Quarterly, 12: 235–256.

    Google Scholar 

  • Johnson, J.; M. J. Holub (2003): Questioning Organizational Legitimacy: The Case of U.S. Expatriates. In: Journal of Business Ethics, 47: 269–293.

    Article  Google Scholar 

  • Jones, T. M. (1995): Instrumental stakeholder theory: A synthesis of ethics and economics. In: Academy of Management Review, 20: 404–437.

    Article  Google Scholar 

  • Keck, M. E.; Sikkink, K. (1998): Activists beyond Borders: Advocacy Networks in International Politics. New York.

    Google Scholar 

  • Keim, G. D. (2001): Business and Public Policy. Competing in the Political Market Place. In: Hitt, M.; Freeman, R.; Harrison, J. (Hg.): The Blackwell Handbook of Strategic Management. Oxford: 583–601.

    Google Scholar 

  • Klein, N. (2000): No Logo. New York.

    Google Scholar 

  • Kobrin, S. J. (2001): Sovereignity@bay: Globalization, Multinational Enterprise, and the International Political System. In: Rugman, A. M.; Brewer, T. L. (Hg.): The Oxford Handbook of International Business. New York: 181–205.

    Google Scholar 

  • Kostova, T.; Zaheer, S. (1999): Organizational Legitimacy under Conditions of Complexity: The Case of the Multinational Enterprise. In: Academy of Management Review, 24(1): 64–81.

    Article  Google Scholar 

  • Lal, D. (2003): Private Morality and Capitalism: Learning from the Past. In: Dunning, J. (Hg.): Making Globalization Good. Oxford: 41–60.

    Google Scholar 

  • Levitt, T. (1970): The Dangers of Social Responsibility. In: Meloan, T.; Smith, S.; Wheatly, J. (Hg.): Managerial Marketing Policies and Decisions. Boston: 461–475.

    Google Scholar 

  • Jones, T. M. (1995): Instrumental Stakeholder Theory: A Synthesis of Ethics and Economics. In: Academy of Management Review, 20: 404–437.

    Article  Google Scholar 

  • MacPherson, C. B. (1962): The Political Theory of Possessive Individualism. Hobbes to Locke. Oxford.

    Google Scholar 

  • Maignan, I.; Ferrell, O. C. (2000): Measuring Corporate Citizenship in Two Countries: The Case of the United States and France. In: Journal of Business Ethics, 23: 283–297.

    Article  Google Scholar 

  • Manin, B. (1987): On Legitimacy and Political Deliberation. In: Political Theory, 15(3): 338–368.

    Article  Google Scholar 

  • Maragia, B. (2002): Almost There: Another Way of Conceptualizing and Explaining NGOs. Quest for Legitimacy in Global Politics. In: Non-State Actors and International Law, 2: 301–332.

    Article  Google Scholar 

  • Margolis, J. D.; Walsh, J. P. (2003): Misery Loves Companies: Rethinking Social Initiatives by Business. In: Administrative Science Quarterly, 48: 268–305.

    Article  Google Scholar 

  • Marshall, T. H. (1965): Class, Citizenship and Social Development. New York.

    Google Scholar 

  • Matten, D.; Crane, A. (2005): Corporate Citizenship: Towards an Extended Theoretical Conceptualization. In: Academy of Management Review, 30: 166–179.

    Article  Google Scholar 

  • Maurer, J. G. (1971): Readings in Organizational Theory: Open System Approaches. New York.

    Google Scholar 

  • McWilliams, A.; Siegel, D. (2001): Corporate Social Responsibility: A Theory of the Firm Perspective. In: Academy of Management Review, 26: 117–127.

    Article  Google Scholar 

  • Meyer, J.; Scott, R. (1983): Centralization and the Legitimacy Problems of Local Government. In: Meyer, J.; Scott, R. (Hg.): Organizational Environment: Rituals and rationality. Newbury Park: 199–216.

    Google Scholar 

  • Meyer, J. W.; Rowan, B. (1977): Institutionalized Organizations: Formal Structure as Myth and Ceremony. In: American Journal of Sociology, 83: 340–363.

    Article  Google Scholar 

  • Mitchel, N. (1986): Corporate Power, Legitimacy, and Social Policy. In: The Western Political Quarterly, 39(2): 197–212

    Article  Google Scholar 

  • Nanz, P.; Steffek, J. (2004): Global Governance, Participation and the Public Sphere. In: Government and Opposition, 39(2): 314–335.

    Article  Google Scholar 

  • Neilsen, E. H.; Hayagreeva Rao, M. V. (1987): The Strategy-Legitimacy Nexus: A Thick Description. In: Academy of Management Review, 12: 523–533.

    Article  Google Scholar 

  • Noonan, J. (2005): Modernization, Rights, and Democratic Society: The Limits of Habermas `s Democratic Theory. In: Res Publica, 11: 101–123.

    Article  Google Scholar 

  • Oliver, C. (1991): Strategic Responses to Institutional Processes. In: Academy of Management Review, 16: 145–170.

    Article  Google Scholar 

  • Oliver, C. (1996): The Institutional Embeddedness of Economic Activity. In: Advances in Strategic Management, 13: 163–186.

    Google Scholar 

  • Orlitzky, M.; Schmidt, F. L.; Rynes, S. L. (2003): Corporate Social and Financial Performance: A Meta-analysis. In: Organization Studies, 24: 403–441.

    Article  Google Scholar 

  • Palan, R. (2003): The Offshore World. Sovereign Markets, Virtual Places, and Nomad Millionaires. Ithaca.

    Google Scholar 

  • Parsons, T. (1960): Structure and Process in Modern Society. Glencoe,Ill.

    Google Scholar 

  • Peters, F. (2004): Choice, Consent, and the Legitimacy of Market Transactions. In: Economics and Philosophy, 20: 1–18.

    Article  Google Scholar 

  • Perrow, C. (2000): An Organizational Analysis of Organizational Theory. In: Contemporary Sociology, 29: 469–476.

    Article  Google Scholar 

  • Pfeffer, J.; Salancik, G. (1978): The External Control of Organizations: A Resource Dependence Perspective. New York.

    Google Scholar 

  • Reich, R. (1998): The New Meaning of Corporate Social Responsibility. In: California Management Review, 40(2): 8–17.

    Google Scholar 

  • Rondinelli, D. A. (2002): Transnational Corporations: International Citizens or New Sovereigns? In: Business and Society Review, 107(4): 391–413.

    Article  Google Scholar 

  • Scherer, A. G. (2003): Multinationale Unternehmen und Globalisierung. Heidelberg.

    Google Scholar 

  • Scherer, A. G.; Palazzo, G. (forthcoming): Toward a Political Conception of Corporate Responsibility.Business and Society Seen from A Habermasian Perspective. In: Academy of Management Review, forthcoming.

    Google Scholar 

  • Scherer, A. G.; Palazzo, G.; Baumann, D. (2006): Global Rules and Private Actors. Toward a New Role of the Transnational Corporation in Global Governance. In: Business Ethics Quarterly, 16(4): 502–532.

    Google Scholar 

  • Scherer, A. G.; Smid, M. (2000): The Downward Spiral and the U.S. Model Business Principles.Why MNEs Should Take Responsibility for the Im provement of World-wide Social and Environmental Conditions. In: Management International Review, 40: 351–371.

    Google Scholar 

  • Sethi, S. P. (1975): Dimensions of Corporate Social Performance: An Analytical Framework. In: California Management Review, 17(3): 58–64.

    Google Scholar 

  • Sethi, S. P. (2002): Standards for Corporate Conduct in the International Arena: Challenges and Opportunities for Multinational Corporations. In: Business and Society Review, 107: 20–40.

    Article  Google Scholar 

  • Shell, G. R. (2004): Make the Rules or your Rivals Will. New York.

    Google Scholar 

  • Skinner, Q. (1989): The State. In: Ball, T.; Farr, J.; Hanson, R. L. (Hg.): Political Innovation and Conceptual Change. Cambridge, UK.: 90–131

    Google Scholar 

  • Smith, J., C.; Chatfield; Pagnucco, R. (1997): Transnational Social Movements and Global Politics: Solidarity Beyond the State. Syracuse, N.Y.

    Google Scholar 

  • Steffek, J. (2003): The Legitimation of International Governance: A Discourse Approach. In: European Journal of International Relations, 9(2): 249–275.

    Article  Google Scholar 

  • Steinmann, H.; Scherer, A. G. (2000): Corporate Ethics and Management Theory. In: Koslowski, P. (Hg.), Contemporary Economic Ethics and Business Ethics. Berlin: 148–192.

    Google Scholar 

  • Strand, R. (1983): A Systems Paradigm of Organizational Adaptations to the Social Environment. In: Academy of Management Review, 8: 90–96.

    Article  Google Scholar 

  • Suchman, M. C. (1995): Managing Legitimacy: Strategic and Institutional Approaches. In: Academy of Management Review, 20: 571–610.

    Article  Google Scholar 

  • Sundaram, A. K.; Inkpen, A. C.: (2004): The Corporate Objective Revisited. In: Organization Science, 15: 350–363.

    Article  Google Scholar 

  • Suddaby, R.; Greenwood, R. (2005): Rhetorical Strategies of Legitimacy. In: Administrative Science Quarterly, 50: 35–67.

    Google Scholar 

  • Swanson, D. L. (1999): Towards an Integrative Theory of Business and Society: A Research Strategy for Corporate Social Performance. In: Academy of Management Review, 24: 506–521.

    Article  Google Scholar 

  • Tapscott, D.; Ticoll, D. (2003): The Naked Corporation. New York.

    Google Scholar 

  • Ulrich, P. (1993): Transformation der ökonomischen Vernunft. Bern.

    Google Scholar 

  • Ulrich, P. (2002): Ethics and Economics. In: Zsolnai, L. (Hg.): Ethics in the Economy. Oxford, u.a.

    Google Scholar 

  • Vogel, D. J. (2005): Is there a Market for Virtue? The Business Case for Corporate Social Responsibility. In: California Management Review, 47 (Summer 2005): 19–45.

    Google Scholar 

  • Waddock, S. (2000): The Multiple Bottom Lines of Corporate Citizenship: Social Investing, Reputation, and Responsibility Audits. In: Business and Society Review, 105(3): 323–345.

    Article  Google Scholar 

  • Walsh, J. P.; Weber, K.; Margolis, J. D. (2003): Social Issues and Management: Our Lost Cause Found. In: Journal of Management, 29: 859–881.

    Article  Google Scholar 

  • Wartick, S. L.; Cochran, P. L. (1985): The Evolution of the Corporate Social Performance Model. In: Academy of Management Review, 10: 758–769.

    Article  Google Scholar 

  • Weber, M. (1922/1978): Economy and Society. Berkeley.

    Google Scholar 

  • Wicks, A.; Freeman, R. E. (1998): Organization Studies and the New Pragmatism: Positivism, Anti-Positivism, and the Search for Ethics. In: Organization Science, 9: 123–149.

    Article  Google Scholar 

  • Wolf, K. D. (2005): Private Actors and the Legitimacy of Governance beyond the State. Conceptional Outlines and Empirical Explorations. In Benz, A., Papadopoulos, I. (Hg.): Governance and Democratic Legitimacy: Transnational, European, and Multi-Level-Issues. London: 200–227.

    Google Scholar 

  • Wood, D. J. (1991): Corporate Social Performance Revisited. In: Academy of Management Review, 16: 691–718.

    Article  Google Scholar 

  • Wulfson, M. (2001): The Ethics of Corporate Social Responsibility and Philanthropic Ventures. In: Journal of Business Ethics, 29: 135–145.

    Article  Google Scholar 

  • Young, I. M. (2003): From Guilt to Solidarity. Sweatshops and Political Responsibility. In: Dissent, 50(2): 39–44.

    Google Scholar 

  • Young, I. M. (2004): Responsibility and Global Labor Justice. In: The Journal of Political Philosophy, 12: 365–388.

    Article  Google Scholar 

  • Zald, M. N.; Morrill, C.; Rao, H. (2005): The Impact of Social Movements on Organizations. In: Davis, G. F.; McAdam, D.; Scott, W. R.; Zald, M. N. (Hg.): Social Movements and Organizations Theory. Cambridge; UK.: 253–279.

    Google Scholar 

  • ZĂĽrn, M. (2000): Democratic Governance beyond the Nation-State: The EU and Other International Institutions. In: European Journal of International Relations, 6(2): 183–221.

    Article  Google Scholar 

Download references

Authors

Editor information

Rainhart Lang Annett Schmidt

Rights and permissions

Reprints and permissions

Copyright information

© 2007 Deutscher Universitäts-Verlag | GWV Fachverlage GmbH, Wiesbaden

About this chapter

Cite this chapter

Palazzo, G., Scherer, A.G. (2007). Organizational Legitimacy as Deliberation: Towards a New Political Role of the Business Firm. In: Lang, R., Schmidt, A. (eds) Individuum und Organisation. DUV. https://doi.org/10.1007/978-3-8350-9386-7_2

Download citation

Publish with us

Policies and ethics