Corporate Social Responsibility and Corporate Governance: The Contribution of Economic Theory and Related Disciplines (International Economic Association Series Book 149)

Corporate social responsibility is examined in this book as multi-stakeholder approach to corporate governance. This volume outlines neo-institutional and stakeholder theories of the firm, new rational choice and social contract normative models, self regulatory and soft law models, and the advances from behavioural economics. Corporate social responsibility (CSR) is fast becoming a social demand and standard of behaviour in terms of the equitable treatment of corporate stakeholders to which all businesses feel they are expected to conform. Increasingly governance of corporations is viewed as accountable not just to shareholders but to multiple stakeholders, requiring an extension of the firm's fiduciary duties. Such ideas are even more topical after the last global financial crisis. This volume addresses the question: what does the rise of corporate social responsibility mean for economic theory? It considers, in particular, microeconomic theory and the theory of the firm alongside new-institutional and behavioural theories, game theory, stakeholder theory, incomplete contracts and law and economics. Drawing on the contributions of outstanding scholars like the Nobel laureate Oliver Williamson among others, it is shown that corporate social responsibility forces the economic theorist to engage with ideas emanating from other disciplines, including ethics, political philosophy and the law. The result is a set of essays that is perhaps more interdisciplinary than is usual for books on economic theory. This volume looks certain to establish itself as an invaluable text for scholars of economic theory, as well as their students in both advanced undergraduate and postgraduate courses. Part I explores the relation of CSR, offering different perspectives on the nature of the business firm and its governance structure based on human asset specificity, team production and the stakeholder approach (O. Williamson; M. Aoki; R.E. Freeman; A. Wicks and B. Parmar; A. Kaufman and E. Englander; and L. Stout and M. Blair). Part II considers alternative normative foundations of CSR and corporate governance based on models of the social contract, reputation effects, and collective rational agency (V. Vamberg; L. Sacconi; L. Andreozzi; and B. Chapman). Part III illustrates various approaches to the regulation and self-regulations of CSR, with special emphasis on social standards and multi-stakeholder organisations analysed alongside the more recent acquisition in behavioural economics (M. Blair, C. Williams and L. Lin; L. Becchetti and N. Pace; M. Osterloh, B. Frey and H. Zeitoun; A. Ben Ner, T. Ren and L. Putterman) Corporate Social Responsibility Is Seen In This Book As Multi-stakeholder Approach To Corporate Governance. This Volume Outlines Neo-institutional And Stakeholder Theories Of The Firm, New Rational Choice And Social Contract Normative Models, Self Regulatory And Soft Law Models, And The Advances From Behavioral Economics-- Corporate Governance: A Contractual And Organisational Perspective / Oliver E. Williamson -- Human-asset Essentiality And Corporate Social Capital In A Stakeholders-society Perspective / Masahiko Aoki -- Stakeholder Theory As A Basis For Capitalism / R. Edward Freeman, Andrew C. Wicks And Bidhan Parmar -- Behavioral Economics, Federalism And The Triumph Of Stakeholder Theory /allen Kaufman And Ernie Englander -- Specific Investment And Corporate Law / Margaret M. Blair And Lynn A. Stout -- Corporate Social Responsibility In A Market Economy: The Perspective Of Constitutional Economics / Viktor J. Vanberg -- A Rawlsian View Of Csr And The Game Theory Of Its Implementation (part I): The Multistakeholder Model Of Corporate Governance / Lorenzo Sacconi -- A Rawlsian View Of Csr And The Game Theory Of Its Implementation (part Ii): Fairness And Equilibrium / Lorenzo Sacconi -- When Reputation Is Not Enough: Justifying Corporate Social Responsibility / Luciano Andreozzi -- Rational Association And Corporate Responsibility / Bruce Chapman -- The Roles Of Standardization, Certification And Assurance Services In Global Commerce / Margaret M. Blair, Cynthia A. Williams And Li-wen Lin -- Voluntary Co-determination Produces Sustainable Competitive Advantage / Margit Osterloh, Bruno S. Frey And Hossam Zeitoun -- Corporate Trust Games In Modern Knowledge Economies / Leonardo Becchetti And Noemi Pace -- Effects Of Different Stakeholder Groups' Strategic Control On Organisational Effectiveness And Well-being Of Customers And Employees: An Empirical Investigation / Avner Ben-ner And Ting Ren -- Trusting, Trustworthiness, And Csr: Some Experiments And Implications / Avner Ben-ner And Louis Putterman. Edited By Lorenzo Sacconi ... [et Al.]. Includes Bibliographical References And Index. Cover......Page 1 Contents......Page 6 Acknowledgements......Page 8 List of Tables......Page 9 List of Figures......Page 10 Notes on the Contributors......Page 12 Introduction......Page 14 Part I: Nature of the Firm and its Governance Structure: Human Asset Specificity, Team Production and the Stakeholder Approach......Page 44 1 Corporate Governance: A Contractual and Organizational Perspective......Page 46 2 Human-Asset Essentiality and Corporate Social Capital in a Stakeholders-Society Perspective......Page 76 3 Stakeholder Theory as a Basis for Capitalism......Page 95 4 Behavioral Economics, Federalism and the Triumph of Stakeholder Theory......Page 116 5 Specific Investment and Corporate Law......Page 142 Part II: Normative Foundations of CSR as a Corporate Governance Model: Social Contract of the Firm, Reputations and Rational Agency......Page 172 6 Corporate Social Responsibility in a Market Economy: The Perspective of Constitutional Economics......Page 174 7 A Rawlsian View of CSR and the Game Theory of its Implementation (Part I): the Multi-stakeholder Model of Corporate Governance......Page 200 8 A Rawlsian View of CSR and the Game Theory of its Implementation (Part II): Fairness and Equilibrium......Page 237 9 When Reputation is not Enough: Justifying Corporate Social Responsibility......Page 296 10 Rational Association and Corporate Responsibility......Page 315 Part III: CSR, Social Standards and Multi-Stakeholder Organisations According to the Behavioral Economics Perspective......Page 340 11 The Roles of Standardization, Certification, and Assurance Services in Global Commerce......Page 342 12 Voluntary Co-determination Produces Sustainable Competitive Advantage......Page 375 13 Corporate Trust Games in Modern Knowledge Economies......Page 396 14 Effects of Different Stakeholder Groups' Strategic Control on Organizational Effectiveness and Well-Being of Customers and Employees: An Empirical Investigation......Page 424 15 Trusting, Trustworthiness, and CSR: Some Experiments and Implications......Page 453 Index......Page 475 Cover 1 Contents 6 Acknowledgements 8 List of Tables 9 List of Figures 10 Notes on the Contributors 12 Introduction 14 Part I: Nature of the Firm and its Governance Structure: Human Asset Specificity, Team Production and the Stakeholder Approach 44 1 Corporate Governance: A Contractual and Organizational Perspective 46 2 Human-Asset Essentiality and Corporate Social Capital in a Stakeholders-Society Perspective 76 3 Stakeholder Theory as a Basis for Capitalism 95 4 Behavioral Economics, Federalism and the Triumph of Stakeholder Theory 116 5 Specific Investment and Corporate Law 142 Part II: Normative Foundations of CSR as a Corporate Governance Model: Social Contract of the Firm, Reputations and Rational Agency 172 6 Corporate Social Responsibility in a Market Economy: The Perspective of Constitutional Economics 174 7 A Rawlsian View of CSR and the Game Theory of its Implementation (Part I): the Multi-stakeholder Model of Corporate Governance 200 8 A Rawlsian View of CSR and the Game Theory of its Implementation (Part II): Fairness and Equilibrium 237 9 When Reputation is not Enough: Justifying Corporate Social Responsibility 296 10 Rational Association and Corporate Responsibility 315 Part III: CSR, Social Standards and Multi-Stakeholder Organisations According to the Behavioral Economics Perspective 340 11 The Roles of Standardization, Certification, and Assurance Services in Global Commerce 342 12 Voluntary Co-determination Produces Sustainable Competitive Advantage 375 13 Corporate Trust Games in Modern Knowledge Economies 396 14 Effects of Different Stakeholder Groups' Strategic Control on Organizational Effectiveness and Well-Being of Customers and Employees: An Empirical Investigation 424 15 Trusting, Trustworthiness, and CSR: Some Experiments and Implications 453 Index 475 0230236545,9780230236547 Palgrave Macmillan, 2011 Machine generated contents note: Introduction PART I: PERSPECTIVE ON THE NATURE OF THE FIRM AND CORPORATE GOVERNANCE: TRANSACTION COSTS, TEAM PRODUCTION AND STAKEHOLDER THEORY Corporate Governance: a contractual and organisational perspective Human-Asset Essentiality and Corporate Social Capital in a Stakeholders-Society Perspective Stakeholder Theory as a Basis for Capitalism Behavioral economics, federalism and the triumph of Stakeholder theory Specific Investment and Corporate Law PART II: THE CONSTITUTIONAL CONTRACT AND NORMATIVE RATIONAL CHOICE MODELS OF CORPORATE GOVERNANCE, AND CSR A Rawlsian view on CSR as multistakeholder model of corporate governance, and the game theory of its implementation When reputation is not enough: justifying Corporate Social responsibility Corporate social responsibility in a market economy: the perspective of Constitutional Economics Rational Association and Corporate Responsibility PART III: CSR, REGULATION AND SELF-REGULATION CSR and Sustainable development The role of standardization, certification and assurance service in Global Commerce PART IV: MODELS OF NON-PURELY SELF-INTERESTED ECONOMIC AGENTS AND THE INTRINISIC MOTIVATION FOR THE SOCIALLY RESPONSIBLE GOVERNANCE THE ORGANISATIONS Voluntary Co-determination produces sustainable Competitive Advantage Corporate trust Games in modern knowledge economies Effects of Different Stakeholder Groups Strategic control on Organisational Effectiveness and Well-being of Customers and Employees: An Empirical Investigation Corporate Honesty and Business Education: a behavioural Model Trusting, Trustworthiness and CSR: Some Experiments and Implications.