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Summary Organisations and Society (grade 9,0)
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Extensive Summary Organisations and Society, part of the Master Organisational Design and Development. Includes everything to pass the exam.
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Organizations and SocietyTable of Contents
1. Achterbergh Vriens (2009) - Organizational structures supporting rich survival................................2
1. Stiglitz (2008) - Making Globalization Work,.......................................................................................7
1. Johnson (2002) - Globalization benefits............................................................................................10
1. Friedman (1970) - Social responsible of business is to increase its profits.......................................14
1. Freeman et al. (2007) - Stakeholder capitalism................................................................................16
2. Akram (2021) - Moral injury and the COVID-19 pandemie: A philosophical viewpoint....................21
2. Greenhalgh (2021) – Moral uncertainty: a case study of covid-19...................................................22
2. Van Staveren (2007) - Beyond Utilitarianism and Deontology..........................................................23
2. Fieser (N.d) - Ethics...........................................................................................................................25
2. Haines (N.d.) - Consequentialism......................................................................................................26
2. BBC (2014) - Duty-based ethics........................................................................................................27
2. Athanassoulis (N.d.) - Virtue Ethics...................................................................................................29
2. Christie (2007) - Virtue ethics as an alternative - reasoning in the harm reduction debate.............31
2. McCormick (N.d.) – Kant’s Ethics and criticisms of utilitarianism.....................................................32
3. Waddock (2008) - Building a New Institutional Infrastructure for Corporate Responsibility............34
3. Mosley (2017) - Workers’ rights in global value chains: possibilities for protection and for peril....38
3. Porter (2011) - Creating Shared Value..............................................................................................41
3. Crane & Palazzo (2014) - Contesting the Value of “Creating Shared Value”.....................................44
4. Mitchell (1997) - Toward a theory of stakeholder identification and salience.................................48
4. Scherer and Palazzo (2007) - Toward a political conception of corporate responsibility..................54
4. Schembera (2018) - Implementing Corporate Social Responsibility: UN Global Compact................63
5. Scott (2008) - Crafting an analytic framework: Three pillars of institutions......................................70
5. Suchman (1995) - Managing Legitimacy: strategic and institutional approaches.............................78
5. Wijen (2014) - Means versus ends in opaque institutional fields Trading off compliance and
achievement in sustainability standard adoption.................................................................................87
5. Schembera (2021) - Making sense of compliance and achievement in socioenvironmental
governance across different institutional contexts: The case of anti-corruption.................................99
6. Arenas (2019) - Contestation in Multi-Stakeholder Initiatives: Enhancing the Democratic Quality of
Transnational Governance..................................................................................................................115
2
,Week 1: introduction and
characterization of modern
society
Cornerstones, Course goals
Overview characteristics of society
o Risk society, functional differentiation, organization, market society (Achterbergh)
Short summary • Two debates about and in our society
o Globalization (Johnson/ Stiglitz)
o Capitalism (Freeman/Friedman)
The underpinnings of
responsibility
1. Achterbergh Vriens (2009) - Organizational structures supporting
rich survival
How can organizations contribute to society in a meaningful way?
- In such a way that it contributes to employees and civilians living a fulfilled life (based on
Aristotle’s political theory)
Society consists of a manifold of ‘societal subsystems’ each devoted to handle a particular societal
problem
E.g., Societal values -> of which a subsystem is ‘law’ that has to be incorporated into society
so that the normative expectation will be fulfilled, what we can expect that the rule of law
will maintain (you shall not steal).
a. So within this societal subsystem they have their own ‘code’, e.g., what is ‘legal’ and
‘illegal’. So that all legal decisions constitute the legal sub-system. Idem for illegal.
i. This social subsystem – law: develops its own structures -> called programs.
ii. Programs of law are: ‘legislation’ and ‘jurisprudence’ which are programs of
the subsystem ‘law’
iii. Problem: in the ‘law-system, ‘labor law and jurisprudence are programs
structuring the decision whether it is legal or illegal to sack a person in a
particular situation.
iv. * Each societal subsystem exists in the social environment and act
autonomous according to Luhmann 1998
b. The organization we know operate in this functionally differentiated society: they are
part of it the exist by virtue of it and they contribute to it.
i. Organization performance: means that each organization has a set of
primary activities selected by that organizations, e.g., University that
produces young-professionals to the market.
ii. Organization function: the contribution to the realization of the function of a
societal subsystem. By curing its patients, the hospital contributes to
2
, realizing the function of the ‘health-system’. Or, By educating students, the
university contributes to the function of the ‘education-system’.
Key note:
1. The social environment has its own social system:
2. Made up of societal subsystem: ‘law’, ‘education’, ‘health’, ‘politics’
3. Societal subsystems have their own code: ‘legal-illegal’, ‘education level’, ‘health level’,
‘political debate’
4. The structures of the societal subsystems are called programs: ‘legislation’, ‘primary
education-higher education’, ‘dead sick, sick, healthy, ‘ degree of freedom to act’
Explain the two-way process model of Achterbergh:
1. The ‘political system’ develops new legislation to regulate harmful toxic materials for the
work floor. (incorporating society into the organization)
2. Organizations should incorporate this legislation into their safety programs
a. Structing decisions about buying and using toxic material
3. To counter dysfunction and unwanted side effects of organizational performance, societal
subsystems may develop and enforce all kinds of
a. Attenuating programs and amplifying programs (arrow 1)
1. Thus the organizations chooses how to incorporate these programs
into their decision premises and decisions, thus incorporating
societal values and norms into their structures and elements.
2. They consider both their primary activity (e.g., healing sick people)
and the societal values and goals related to both their function and
performance related side effects.
ii. Attenuating programs: are programs that decrease the probability of
dysfunction and unwanted side effects. E.g., only clean hospital bed with
disinfecting substances when no patient is in the room and the worker wears
protecting clothes.
iii. Amplifying programs: are programs that increase the probability of an
organizational awareness of social responsibility and a reflection on the
societal effects of its performance.
b. These attenuating and amplifying programs should both be incorporate into their
decision premises (arrow 2)
i. The decision premises should structure the production of organizational
decisions. So a decision about when to clean hospital beds and in what
manner is considered from the angle of its performance goals (ensure safe
work environments) and societal function (contribution to a healthy society)
ii. Thus organizational decision are structured to weigh and integrate both
performance-related goals and a variety of societal values and goals
iii. By incorporating societal programs, values, and goals into their decision
premises and by incorporating these decision premises into their decision,
organizations ‘incorporate society into themselves’.
c. Through producing decision that balance performance and societal goals and values,
organizations reinforce decision premises (arrow 3) incorporating these goals and
values. Thus strengthening their awareness and reflection on tis societal role and
responsibility
2
, d. Reinforcing these premises, thereafter contribute to reinforcement of the societal
programs they incorporate. And thus they become a common societal practice
(arrow 4)
e. And by going through this process the organizations not only incorporate society into
themselves, the also ‘incorporate themselves into society’ (arrow 3 and 4).
Draw the two-way concept, the model of incorporating society into the organization:
Modes of incorporation as described by Achterbergh
Box 1: Instrumental – incorporation of societal programs: sticking to programs because it
contributes to contingent goals. Main motivation not being punished. Sticking to rules that are
enforces to avoid costly punishment or loss of reputation. To do wat is mandatory and no other own
initiative.
Box 2: Instrumental – incorporation beyond societal programs: going beyond programs because it
contributes to contingent goals. Main motivation: to do what fits with own contingent goals, own
initiative that is concerned with own contingent goals.
Box 3: Responsible/inclusive – incorporation of societal programs: stick to own programs because
this is the right thing to do. Main motivation: follow rules as the rules effect good behavior. To do:
do what is right, and not own initiative as current rules are seen as sufficient to do the right thing.
Box 4: Responsible/inclusive – incorporation beyond of social programs: going beyond the program
because this is the right thing to do. Main motivation: protecting workers. To do: provide what is
necessary to protect the workers, the existing rules are regarded as insufficient to behave
appropriately
Isolating mode
2
,This mode incorporation consists of nothing more than a cost/benefit analysis weighting costs and
benefits of compliance or non-compliance with relevant programs. They incorporation of societal
programs is not done because it is the right thing to do but because it is beneficial to their particular
contingent goals. (avoid customer strikes by incorporating better working conditions for employees)
- So you can stick to the program because based on the cost/benefit analysis it contributes to
the contingent goals of the organization
- You can also go beyond the programs because based on the cost/benefit analysis it
contributes to the contingent goals of the organization
Inclusive mode
In this mode the organizations incorporate societal programs into their decision premises because
they decide it is the right thing to do. Because they consider these programs as enabling citizens to
live a fulfilled life.
- You can stick to the program because this is the right thing to do
- You can go beyond the program because that is the right thing to do
Characterization of modern
society
Overview general characterstics of modern society
- Risk society
o Nuclear power: risk society is the manner in which modern society organizes in
response to risk. We worry about disasters a plague
o Corona virus: given us the opportunity to transform danger into acceptable risk:
o Creating more awareness of risks for potential problems (CO2 emission/ child labor)
- Functionally differentiated
o The idee is that in traditional society in primitive groups did not have differential
between societal values (health/nutrition/safety)
o Today we have a society that became functionally differentiated (Luhmann).
Specialist: doctor/nurses/surgeon. In primitive groups you had just 1 person
o So in this modern society it becomes more complex more decentered and internally
differentiated.
o The problem: all these systems have their own logic. They do not share a common
norms or consensus, instead each has its own ‘horizon’ and logic.
o Benefits: allot of knowledge / more expertise many different doctors
o Problem: communications with each other is harder
- Organization
o Our society is an organizational society. We are born in organizations, educated by
organizations and most of us spend most of our lives working in organizations. And
our leisure time paying, playing and praying in organizations.
- (globalized) market
o Demand and supply is governed by a global free market. Thus in a perfect market
situation this would lead to equal distribution of resources.
2
, o Stiglitz argues that markets are not free nor perfect:
Limited by governments, rules, and regulations (coordinated market)
Power is unequally distributed
Information asymmetry
- Capitalist
o See the debates of Stiglitz and Johnson, and Freeman and Friedman.
Exam questions:
For each of the modes, argue how this mode would look for incorporation of labor safety laws in
Bangladesh by a shipbreaking company. Do that by imagining for each mode a shipbreaking company
that acts according to that mode. Explain what the respective company would do. (12 points)
2
,Debate on Globalization
1. Stiglitz (2008) - Making Globalization Work,
Introduction: talks about his making globalizations workbook. So, what would I like to change, some
minor and major changes.
What are legitimate complains about globalizations?
1. the assumption that everyone will be better off and those who say they are not simply don’t
know it yet. Especially the tariff structure is bad for poor countries (covered up by aid programs).
2. Global financial system is not working properly. Money is flowing from poor to rich and risks of
interest and exchange rates are for poor countries only increasing. Resulting in a lot of crises.
3. Poor countries did not receive the benefits they were promised.
Are things getting better or worse? More people do have become more increasingly integrated in the
global trading system (India, China), leading to enormous growths of their economies. But to engage
you need resources technology and high levels of education (smaller poor countries cannot
undertake). The world is not on a flat playing field but there are mixed effects. We have become
more aware of some globalization’s problems. IMF had free markets as a religion, forcing
unprepared countries to liberalize. They now recognize the problems and negative effects. EU and
US come back on promises like higher agricultural subsidies instead of lowering them as promised.
Also, some countries (EU and US) have too much power with veto rights within the IMF and UN.
Why globalizations have not lived up to its potential?
Three underlying core problems: trade, financial markets and resources.
The overarching problems:
1. Economic globalizations have outpaced political globalizations. We should act more
cooperatively but we do not yet have the (democratic) institutions. Policies don’t focus on fair
when looking internationally but on what is in the countries individual gain.
2. Tense competition between communism and the west. We only looked at are the people were
dealing with anti-communistic so that their resources don’t go to the communists. Did not focus
on development for countries themselves.
3. Pollyanna view of globalizations: everyone will be better of in the long run. Winners can
compensate losers but they don’t. Look more at Scandinavian countries!
Specific problems:
1. Intellectual property rights: less access to life saving medicines. Patent offices don’t know all
products over the world. Strong patents are not always good for science nor poor countries
because the companies do no research on illnesses in poor countries. Do not work with patent
but prize money.
2. Global warming: shows failing global governance and economic perspective does not matter if
the world becomes hostile for humans. Need trade sanctions to get countries like the US to get
on board. Force them to pay the real costs of actions while US does not trade sanctions can
rebalance.
3. Global debt: how to prevent problem of debt occurring? Rich should bare the risks of exchange
rate volatility. We need international institutions that focus on this problem.
2
,Concluding remarks: globalizations will change but will it change in series of crisis or can we act
before that?
Advantages of globalization according to Stiglitz
Poor/Developing countries can buy products against cost-price; as a consequence of being
the factory of developed countries.
The fast movement and integration of technology and education; and with this the free flow
of capital, goods technology and knowledge
The growing awareness of global problems and how to deal with them.
In short, Stiglitz indirectly states that globalization can be successful when its managed by a
national government embracing the characteristics of each individual country. IMF/EU/US
contribute more helping the poor countries more.
Exam questions:
Which advantages and drawbacks of globalization would Stiglitz see for workers in Chittagong/see
the shipbreaking case?
Advantages: The non-profit organizations have expressed their support for the Shipbreaking
platform, which aims to end the dangerous and polluting practice of breaking ship on tidal beaches.
Thus because of globalizations the country is more integrated in the world economy and because of
the growing awareness for the global problems, the shipbreaking practices is increasingly getting
more attention from NGO’s that try to pressure them to stop these practices.
Disadvantage: Even while international laws are in place and can safeguard Bangladesh’s beaches,
corporations can exploit them because global standard do not support them. Thus the company can
continue to pollute the area which will result in less life quality on the long term for its environment.
Because of globalizations the income gap gets larger between Bangladesh and other developed
countries causing them to fall further behind.
Which advantages and drawbacks of globalization would Stiglitz see for international companies in
Chittagong/see the shipbreaking case?
Advantages: The shipbreaking companies gain more revenue through globalization (more companies
and countries to do business with), and thus gain more returns, which creates more opportunities for
the shipbreaking companies to develop further.
Disadvantage: Because of the growing awareness as a result of globalization the shipbreaking
companies are getting increasingly more attention from NGO’s to take responsibility for their
detrimental effects they cause on nature (polluting the tilde beaches), environment (toxic materials
are washed away in the ocean), and their employees safety. Thus as a result of globalization they are
increasingly more pressured to adjust their course of actions to conduct their business in a
sustainable matter.
2
,2
, 1. Johnson (2002) - Globalization benefits
Inequality is caused by globalization not spreading fast and far enough. Author states that the
inequality comes from more people becoming rich, not more people becoming poor.
What made globalization possible and effective? 5 developments
1. Enormous increase in knowledge since 1750
2. Faster and cheaper transportation
3. Faster and cheaper communication
4. The growth of income that permitted the expansion of trade
5. Reduction of barriers to trade (following ww2)
Why is the world different now? (knowledge)
The world produces far more than before with the same world, caused by increase in knowledge in
for example agriculture
Sources of benefits of globalization
Developing countries that opened their economies to trade have gained significantly (South
Korea/Taiwan/Hong Kong/Singapore/Japan and China as a later comer).
1. Flow of ideas: through rapid communication an important new idea originating anywhere
can be known everywhere very quickly. (germ theory helped improve health of nearly all
people in the world)
2. Flow of capabilities: ideas must be transformed into either a product or a process, or both.
Through the availability of vaccination against childhood diseases child mortality rates where
reduced, and are now available throughout the world
3. The spread of literacy and education: Illiteracy was dominant in the world however because
literacy and education have moved from high-> middle-> to low income countries made that
people increased their capabilities.
4. Flow of institutions and policies is required for sustained economic growth: inequality in
the world has not been because the poor have gotten poorer but because the rich have
gotten far richer. Rich countries have adopted institutions and policies that resulted in long-
term growth – protection of private property, the rule of law, enforcement of contracts, and
protection of individual rights, democracy. Where most of these institutions and policies
have been accepted, there has been economic growth. Where they have not been, the
accomplishment has been modest. Unfortunately for the majority of the world’s population,
the institutions and policies that have been associated with significant economic growth have
not been adopted throughout the world.
Have the poor benefited?
Yes, looking at the GDP. The poor countries have benefited from globalization.
Life expectancy?
There has been a major decline in infant and child mortality.
Life expectancy is increased due:
Increased availability of clean water
Improved sanitation
Availability of vaccination for childhood diseases
2
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