Literature Summary - Organizations and Society

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Questions and Answers

What represents a primary motivation for buying protective equipment according to cost-benefit analysis?

  • It satisfies public safety regulations.
  • It will improve worker morale significantly.
  • It reduces the long-term hiring costs for new personnel. (correct)
  • It enhances company reputation without incurring additional costs.

In the context of ethical behavior, what does sticking to programs due to rules reflect?

  • A tendency to ignore societal expectations.
  • An understanding of employee needs.
  • The importance of adhering to laws and regulations. (correct)
  • A deep commitment to innovative practices.

What is a key characteristic of going beyond societal programs?

  • Maximizing profits at all costs.
  • A conviction that ensuring worker safety is crucial irrespective of costs. (correct)
  • Simplifying procedures to increase efficiency.
  • Prioritizing personal benefit over collective well-being.

What is moral injury in the context of the COVID-19 pandemic?

<p>The psychological distress from failing to uphold moral values. (A)</p> Signup and view all the answers

Which situation could lead to moral injury as explored in the article by Akram?

<p>Unavoidable shortages in medical resources during a crisis. (C)</p> Signup and view all the answers

What aspect does Akram's article likely examine regarding moral injury?

<p>The effects of moral injury on professional practice and individual well-being. (A)</p> Signup and view all the answers

What describes the impact of moral injury on individuals according to the context provided?

<p>It can lead to significant mental health challenges. (A)</p> Signup and view all the answers

What is the philosophical viewpoint on moral injury during moments of crisis such as the COVID-19 pandemic?

<p>It arises from conflicts between personal ethics and operational demands. (B)</p> Signup and view all the answers

What primary argument does Waddock make regarding corporate responsibility?

<p>A new institutional infrastructure is essential for corporate responsibility. (C)</p> Signup and view all the answers

Which of the following does Waddock suggest is necessary in the new governance mechanisms?

<p>Increased accountability and stakeholder engagement. (D)</p> Signup and view all the answers

What shift does Waddock propose concerning corporate values?

<p>From profit maximization to social responsibility. (A)</p> Signup and view all the answers

How does Waddock view the role of education in promoting corporate responsibility?

<p>It should integrate corporate responsibility and sustainability topics. (D)</p> Signup and view all the answers

What does Waddock emphasize as crucial for systemic change in business practices?

<p>Collaboration between various stakeholders. (C)</p> Signup and view all the answers

What components does Waddock mention as part of the new institutional infrastructure?

<p>Reformed norms, values, and governance practices. (C)</p> Signup and view all the answers

What role do partnerships play in Waddock's vision for corporate responsibility?

<p>They are vital for driving collective action and change. (A)</p> Signup and view all the answers

What is cited as a key aspect of performance evaluations in Waddock's new framework?

<p>Incorporating sustainability metrics. (B)</p> Signup and view all the answers

What is one significant limitation of private governance-based approaches in labor-related outcomes?

<p>They cannot address the influence of national governments. (A)</p> Signup and view all the answers

How do lead firms in high-standard destinations influence their supply chain partners?

<p>By creating incentives to protect worker rights. (C)</p> Signup and view all the answers

What effect does a narrow supply chain have on enforcement of labor-related standards?

<p>It allows for easier enforcement of standards by lead firms. (A)</p> Signup and view all the answers

Which hypothesis suggests that government actions are crucial for worker rights protection?

<p>Government Incentives (A)</p> Signup and view all the answers

What challenge do broad supply chains create for workers seeking better protection?

<p>They increase the risk of losing contracts. (C)</p> Signup and view all the answers

How does the capacity of firms to relocate production affect worker rights?

<p>It allows for regulatory arbitrage. (A)</p> Signup and view all the answers

What has led multinational firms to commit to corporate social responsibility?

<p>High-profile cases of labor rights violations. (D)</p> Signup and view all the answers

Which industry characteristic is associated with better enforcement of labor standards?

<p>Narrow supply chains with fewer partners. (D)</p> Signup and view all the answers

What is primarily independent according to the discussed literature?

<p>Growing risks and growing inequalities (B)</p> Signup and view all the answers

What is suggested to be at the heart of the issues regarding legal governance and risk?

<p>Gaps in legal governance surrounding risk causation (A)</p> Signup and view all the answers

Which authors are mentioned as contributors to the understanding of risk and inequality?

<p>Weber, Beck, Giddens, and Pearce (C)</p> Signup and view all the answers

What does the article suggest about the study of risk inequalities?

<p>It can be extended to various specific environmental inequalities. (C)</p> Signup and view all the answers

What role does the article highlight about law in relation to systemic harms?

<p>Law enables systematic harms from reckless development. (D)</p> Signup and view all the answers

What is emphasized as a critical method in understanding risk production?

<p>Empirically oriented theory and empirical investigations (A)</p> Signup and view all the answers

What phenomenon does the document suggest is causing a disjunction in social benefits and damages?

<p>The distinct accumulation of rewards and risks (C)</p> Signup and view all the answers

Which of the following best captures the state of risks at the bottom according to the discussion?

<p>Risks are accelerating while benefits concentrate at the top. (A)</p> Signup and view all the answers

What is the main focus of Dean Curran's criticism of Ulrich Beck's concept of organized irresponsibility?

<p>The failure to consider power relations within organized irresponsibility. (C)</p> Signup and view all the answers

What aspect of organized irresponsibility does Curran argue is overstated by Beck?

<p>The total uncontrollability of risk. (B)</p> Signup and view all the answers

Which area does Curran believe Beck's theory of organized irresponsibility inadequately addresses?

<p>The complexity of causal chains in contemporary law. (D)</p> Signup and view all the answers

How does Curran view Beck's metaphorical use of organized irresponsibility?

<p>Evocative but limited in theoretical articulation. (B)</p> Signup and view all the answers

Which scholar's work does Beck's concept of organized irresponsibility draw from?

<p>C.W. Mills. (B)</p> Signup and view all the answers

Curran suggests that the relationship between organized irresponsibility and power relations should be characterized as:

<p>Imbricated and complex. (B)</p> Signup and view all the answers

What does Curran argue is a significant oversight in Beck's discussion of organized irresponsibility?

<p>The interplay between individual actions and systemic issues. (B)</p> Signup and view all the answers

What potential topic does organized irresponsibility illuminate according to the article?

<p>Corporate crime. (C)</p> Signup and view all the answers

What is a primary reason the EU challenges the establishment of offshore shelters by US exporting companies?

<p>It is seen as unfair and undermines the global economy. (B)</p> Signup and view all the answers

How do export subsidies and import levies by the EU affect trade?

<p>They distort trade and hinder economic growth. (A)</p> Signup and view all the answers

Which of the following best describes 'unquantifiable externalities' mentioned in the article?

<p>Negative consequences that cannot be expressed in numbers. (A)</p> Signup and view all the answers

What role do corporate power and influence play in harmful practices?

<p>They contribute to the shaping of public opinion and policy. (C)</p> Signup and view all the answers

Which factor is highlighted as a barrier to controlling harmful corporate practices?

<p>Short-term vision and resistance to taxation. (A)</p> Signup and view all the answers

Who should be included in the audience for addressing legal crimes, according to the findings?

<p>Law makers, corporations, and the general public. (D)</p> Signup and view all the answers

What is considered essential for remedial actions in addressing harmful corporate practices?

<p>Changing social attitudes and redefining legitimacy. (A)</p> Signup and view all the answers

What does the article suggest about the impact of large-scale anti-social activities by some industries?

<p>They result in hidden externalities that are harmful. (C)</p> Signup and view all the answers

Flashcards

Contingent Goal Motivation

Making decisions based on cost-benefit analysis, prioritizing practical gains over ethical principles.

Rule-Based Motivation

Following rules strictly, regardless of personal beliefs, because they are legally binding.

Integrity-Driven Motivation

Acting beyond legal obligations because it aligns with deeply held moral convictions.

Moral Injury

Psychological distress caused by moral conflict, when unable to act in accordance with one's ethical values.

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Pandemic-Specific Challenges

The ethical challenges healthcare workers face during a pandemic, such as resource allocation and patient prioritization.

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Moral Distress

The inability to act according to one's ethical beliefs, often due to constraints or pressures.

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Philosophical Perspective on Moral Injury

Examining moral responsibility in healthcare settings, especially during crises like pandemics.

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Impact of Moral Injury

The effects of moral injury on individuals' well-being and professional practice.

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Inadequacy of Traditional Institutions

Existing structures for corporate responsibility, like laws and regulations, are insufficient to tackle current social and environmental issues.

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New Institutional Infrastructure for Corporate Responsibility

A new system that encourages businesses to prioritize social and environmental well-being alongside profits.

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Shifting Mindset: Stakeholder Orientation

Shifting focus from maximizing shareholder profit to considering the needs of all stakeholders (employees, customers, communities, etc.).

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Reforms in Corporate Governance

Encouraging transparency, engaging stakeholders in decision-making, and incorporating sustainability metrics into evaluations.

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Role of Education and Research

Including corporate responsibility and sustainability topics in business education and promoting research in these areas.

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Collaboration for Systemic Change

Collaboration between businesses, governments, NGOs, and academia to create a more sustainable and ethical business environment.

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Corporate Responsibility: Beyond Legal Compliance

The mindset and practices of promoting corporate responsibility that go beyond legal obligations and prioritize ethical behavior.

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Building a Sustainable Business Environment

Building an institutional infrastructure for corporate responsibility requires a commitment to creating a more sustainable and responsible business environment.

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Government's role in labor outcomes

Government plays a vital role in shaping labor conditions by setting laws and regulations, even when private governance approaches aim to address worker rights.

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Concentration of production stages

Production processes have become concentrated in a few major players, impacting worker safety and conditions across a global supply chain.

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Rationalizing supply chains: pressure and influence

The rationalization of supply chains can both pressure supplier firms to improve standards and shift influence from lead firms to suppliers.

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Regulatory arbitrage in supply chains

Businesses can move production or sourcing to places with weaker labor laws, avoiding stricter regulations in their home countries.

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Corporate social responsibility in response to abuse

High-profile cases of labor abuses have prompted multinational companies to publicly commit to better practices, although enforcement can be uneven.

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Monitoring in shorter supply chains

Monitoring labor conditions is easier in shorter, simpler supply chains where each step is more visible.

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Risk of losing contracts in longer chains

Workers might be less likely to demand better conditions or benefits in long, complex chains, as they fear losing contracts and livelihoods.

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Government incentives for worker protection

National governments need to cooperate and create incentives to pass laws protecting workers in global supply chains.

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Disjunction of Benefits and Damages

The widening difference between the benefits enjoyed by the wealthy and the risks faced by the less fortunate.

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Dualization of Accumulation

The accumulation of rewards and the accumulation of risks and precarity are not equal; some benefit while others suffer.

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Tracks of Accumulation

The processes through which certain groups acquire greater wealth, while others face increasing risks and instability.

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Risk-Inequality Nexus

The study of how legal systems contribute to increasing risks and inequalities.

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Organized Irresponsibility

The deliberate failure to take responsibility for potential risks, often used to protect profits.

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Contradictions of Collective Agency

The situation where individuals or groups are unable to act collectively to address systemic risks.

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Gaps in Legal Governance

The legal gaps surrounding complex risk causation, leading to systematic harms.

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Empirical Investigations of Risk Production

Empirical research is crucial to understand how specific systems generate risks and inequalities.

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Hidden Externalities

When corporations operate within the law but their actions still have negative societal impacts, often disguised as 'externalities.'

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Opportunity Costs of Corporate Misconduct

The cost of lost opportunities and potential due to unethical corporate practices.

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Corporate Influence on Policy and Public Opinion

Corporations can use their power to influence policymakers and shape public opinion, often leading to harmful practices being accepted or ignored.

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Normalization of Harmful Practices

Rationalizations and cultural attitudes can make harmful corporate practices seem normal and acceptable.

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Short-Term Vision vs. Long-Term Consequences

The focus on short-term profits and resistance to government intervention often hinders efforts to control corporate behavior and its negative externalities.

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Audience for Change

Addressing harmful corporate practices requires engaging not only those already concerned but also policymakers, corporations, and the general public.

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Social Attitudes and Redefining Legitimacy

Shifting societal attitudes and redefining what's considered legitimate business practices are crucial for addressing corporate misconduct.

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Personalizing Corporate Externalities

Demonstrating the direct impact of corporate externalities on individuals and communities can build public support for regulatory action.

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Organized Irresponsibility and Power Relations

This concept acknowledges the inherent power imbalances that contribute to situations where individuals or organizations are shielded from responsibility for their actions, even when causing harm.

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Organized Irresponsibility and Risk Control

The idea that risks arising from organized irresponsibility are completely unmanageable is challenged. Even in complex situations with unpredictable outcomes, individuals and institutions can make choices that mitigate their exposure to risk.

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Law and Organized Irresponsibility

Existing legal frameworks might not adequately address the complexities of causal chains involved in generating organized irresponsibility. Beck's theory suggests that social risk often arises as an unintended consequence of actions, and this aspect needs further exploration with regards to legal frameworks.

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Theoretical Framework for Organized Irresponsibility

While the concept of organized irresponsibility is compelling, its theoretical foundation is limited. Curran suggests that exploring how interests and complex causal processes relate to liability avoidance can strengthen the understanding of the phenomenon.

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Shifting the Blame: From Individuals to Institutions

In a situation of organized irresponsibility, corporations and institutions can be held accountable for their practices, shifting the focus from individual blame to collective responsibility.

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Rethinking Law and Responsibility

The article argues that a reevaluation of how law handles collective and individual responsibility is crucial to tackle inequality and global systemic risk.

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Organized Irresponsibility and Corporate Power

C.W. Mills' use of the term "organized irresponsibility" highlights the systemic impunity and lack of awareness among powerful individuals in corporate settings.

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Understanding Corporate Crime

Ulrich Beck's concept of organized irresponsibility provides a lens to analyze corporate crime and highlights the unintended risks created by organizations.

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Study Notes

Literature Summary - Organizations and Society

  • Lectures and Articles Covered: The document provides a summary of various lectures and articles, categorizing them by lecture number.
  • Content Focus: The summaries cover a range of topics, including organizational structures, globalization, stakeholder theory, risk, virtue ethics, duty-based ethics, and compliance in complex environments.
  • Key Concepts: Stakeholder theory, corporate social responsibility, CSV (Creating Shared Value), globalization, organizational irresponsibility, moral injury, duty-based ethics, virtue ethics, institutional theory (regulative, normative and cognitive pillars), and legitimacy.
  • Authors and Works Mentioned: Numerous authors and their respective works are cited, including Freeman & Parmar, Friedman, Stiglitz, Akram, Athanassoulis, Christie, Groarke, and Sweet, Greenhalgh, Nathanson, Dittmer, McCormick, Van Staveren, Curran, Mosley, Porter & Kramer, Waddock, Scherer & Palazzo, Suchman, Greenwood & Hinings, Raaijmakers & Vermeulen.
  • Key Themes: The relationship between organizations and society, the ethical considerations in business practices, globalization's impact, the role of stakeholders in decision-making, and the various perspectives on corporate responsibility.
  • Methods: The document highlights various methodologies, including case studies, qualitative analysis, and empirical investigations, used for studying organizational behavior and decision-making.
  • Specific Issues Explored: The documents discuss various contemporary and historical issues, such as corporate crime, social inequality, corporate responsibility, moral injury in the context of the COVID-19 pandemic, worker rights in global value chains.
  • Emphasis on Multi-Stakeholder Perspectives: Several articles emphasize the need for a holistic, multi-stakeholder approach to understanding organizational behavior and decision-making, moving beyond a sole focus on shareholders.
  • Importance of Context: The study of organizational change and stability requires understanding the interplay between internal factors (e.g., values, power) and external factors (e.g., market, institutional contexts).
  • Challenges of Defining and Measuring Concepts: The discussions highlight challenges and complexities in defining and measuring concepts like "effective stakeholder management"—as well as analyzing how this "effective" form is realized.

Lecture 1 Summary

  • Article 1 (Freeman & Parmar, 2007): Stakeholder Capitalism: The article advocates for a stakeholder orientation, emphasizing the interests of all stakeholders – not just shareholders, in addition to organizational success.
  • Article 2 (Friedman, 1970): The Social Responsibility of Business Is to Increase Its Profits: This article argues that a company's sole responsibility is to maximize shareholder profits.

Lecture 2 Summary

  • Article 6 (Akram, 2021): Moral Injury and the COVID-19 Pandemic: Examines moral injury experienced by healthcare professionals during the pandemic.
  • Article 7 (Athanassoulis, n.d.): Virtue Ethics: Briefly describes virtue ethics as an ethical approach focusing on character traits and moral virtues.
  • Article 8 (BBC, 2014): Duty-based ethics/deontology: Discusses deontology as a moral theory that emphasizes inherent rightness/wrongness of actions and following moral duties, irrespective of consequences.

Lecture 3 Summary

  • Article 15 (Crane et al, 2014): Creating Shared Value: Critiques the originality of the Creating Shared Value concept, arguing it's not entirely distinct from other existing ideas, such as strategic corporate social responsibility.
  • Article 16 (Mosley, 2017): Workers' rights in global value chains: Explores the impact of global supply chains on workers' rights and the role of host country governments in protecting them.

Lecture 4 Summary

  • Article 19 (Curran, 2018a): Organized Irresponsibility: Discusses how organized irresponsibility can intensify social risk and inequality.
  • Article 20 (Curran, 2018b): Organized Irresponsibility and the Contradictions of Collective Agency: A related article focusing on corporate crime and the limitations of existing legal frameworks for addressing the actions of corporations as collective agents.

Lecture 5 Summary

  • Article 22 (Mitchell et al., 1997): Stakeholder Salience: Presents a framework for identifying and prioritizing stakeholders based on power, legitimacy, and urgency.
  • Article 23 (Scherer & Palazzo, 2007): Corporate Responsibility: Outlines a political conception of corporate responsibility that emphasizes dialogue and stakeholder participation.
  • Article 24 (Schiavone, 2021): Digital Business Models: Explores digital business models and ridesharing for value co-creation in healthcare.

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