Capitalism and Freedom

Based on the Means-End Chain Theory, this paper tested the relationship between Employee perception of CSR and its effects on firms’ internal outcomes (Employee Performance and Employee Corporate I...

Employees’ perception of corporate social responsibility (CSR) and its effects on internal outcomes

Mandatory corporate social responsibility in India and its effect on corporate financial performance: Perspectives from institutional theory and resource‐based view

When corporate scandals break out, a review of corporate governance practices follows and fresh regulation is introduced. However, the public debate on the standards of acceptable corporate behavior appears devoid of moral expectations. Our corporations should not only be legal and economic beings but moral ones too. Gandhi’s concept of “trusteeship” can serve as a philosophical foundation for businesses and provide requisite moral guidance.

Trusteeship as a Moral Foundation for Business

Little is known about the internationalization behavior of Emerging Market Family Business Groups (EFBGs) and their strategic usage of family managers in foreign subsidiaries facing uncertainty due to institutional differences. Informed by the resource-based view of the firm and by institutional theory, we hypothesize that family managers are an EFBGs-specific resource used to mitigate institutional uncertainty caused by larger institutional distances occurring between home and host countries. Moreover, family managers are used differently depending on the regional focus of the EFBGs, which further strengthens the critical role that family manager’s play in management and control across the business groups. We employ 5-year panel data on Taiwanese EFBGs, and our results indicate that family managers tend to be assigned by EFBGs with stronger operations outside the home region, and in foreign subsidiaries where strong differences in regulative and cognitive institution may exist. We contribute to the continuing understanding of family ownership in the management of EFBGs, and the research of internationalization of firms on managing foreign subsidiaries.

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Emerging Market Multinational Family Business Groups and the Use of Family Managers in Foreign Subsidiaries

The role of artificial intelligence in HRM: A systematic review and future research direction

We draw insights from the perspective of theory of complex adaptive systems to gain knowledge about complex interactions and the dynamic nature of entrepreneurial family business groups. We develop a theoretical understanding of complex longevity in entrepreneurial family firms through a detailed analysis of a multigenerational family business group. We propose that family business groups are the outcome of complex temporal dynamic interactions within and between family business subsystems: family, business and ownership. Our analysis shows that even complex systems may have a subtle balance inherent in the interaction of their subsystems. A family can control the complexity of a family business group by understanding and appropriately managing the complexity inherent as a family, as a business group and in ownership ties across the family and the businesses.

/pdf/the-dynamics-and-complexity-of-family-business-groups-3xlg9u6utb.pdf

The Dynamics and Complexity of Family Business Groups

Family business groups are highly complex ownership structures. In this chapter, we suggest that owning a family business group needs to create benefits that overcome the transaction costs and ownership costs emerging from the complexities of ownership. We separate the effects of ownership into two main categories: the legal effects and the emotional effects. In terms of legal ownership, the control over the business and its resources suggests a freedom to operate the businesses and claims on their resources, to append new businesses to the FBG, to organize their relationships between the separate businesses and to exit from the businesses at will. The emotional benefits include the service of the owners’ self-deserving interests, positive effects on the family cohesion and togetherness and growth in social recognition and status. It seems that ownership along with its multiple effects may play a more vital role in explaining the development of family business groups than has been previously thought.

/pdf/deciphering-ownership-of-family-business-groups-3zh7h0jznl.pdf

Deciphering Ownership of Family Business Groups

Purpose




This paper aims to discuss how multinational enterprises (MNEs) can approach corporate social responsibility (CSR) in developing countries. Such countries face challenges of low social development, income differences and weak institutional framework. The society is also characterized by greater power distance and in-group collectivism. Managers of MNEs operating in developing countries have to find ways and means to deliver CSR which is in sync with the atypical socio-cultural-political-demographical needs of the country. They cannot just concentrate on strategic CSR to create positive externalities; rather, they have to provide generic social benefits to local communities.




Design/methodology/approach




The paper examines select literature to suggest six propositions regarding CSR approaches that can be adopted by MNEs.




Findings




Managers of MNEs will concentrate on those stakeholders who have power to punish or reward, and, apart from shareholders, these are likely to be local communities. Hypernorms operating in background will be linked to emergence of macro-social contract of societal expectation to provide some support to local community, whose specific forms will be community-specific microsocial contracts. These will aim at providing generic social goods to local community, through a variety of transactional and calculative activities, high on tokenism.




Research limitations/implications




This is a conceptual work. Empirical study is not done.




Originality/value




The mainstream CSR agenda is largely driven by concerns and priorities of developed countries. It aims at universalizing a set of conditions that do not exist in developing countries, and ignores the local realities and priorities. The paper fills a gap in explaining why the concept of global CSR has its limitations, and MNEs have to concentrate on alleviating local demands.

CSR approaches of MNEs in developing countries

Worldwide, governments are attempting a unique combination of hard and soft legislation aimed at getting business to share responsibility for providing and sustaining a welfare state. The discretionary responsibility of philanthropy is increasingly coming under mandate; we label this as mandated CSR (mCSR). The concept of mCSR is discussed in the present chapter, using experiences from Indian legislation. In 2013, India legislated that large-sized companies must spend two percent of their net profit on priority issues such as poverty alleviation, capacity building, and environmental sustainability. This study discusses various problems and implications that are likely to be inherent in mCSR, using the Indian legislation as a backdrop.

Kajari Mukherjee

Papers

The role of artificial intelligence in HRM: A systematic review and future research direction

The Dynamics and Complexity of Family Business Groups

Deciphering Ownership of Family Business Groups

CSR approaches of MNEs in developing countries

Mandated Corporate Social Responsibility (mCSR): Implications in Context of Legislation