The Rana Plaza disaster seven years on: Transnational experiments and perhaps a new treaty?

This article examines several noteworthy initiatives that were implemented following the deadly 2013 Rana Plaza disaster in Bangladesh. They broke new ground in transnational labour law. The ILO-backed initiatives were largely successful but remain insufficient to achieve lasting change in the ready-made garment industry, where global brands’ supply chain buying practices constrain investment in occupational safety and health. A proposed United Nations treaty on business and human rights now seeks to enhance corporate accountability. Although promising, as part of a smart mix of multi-level public and private solutions, the treaty needs fine-tuning in the light of lessons learned from post-Rana Plaza experiments.     

Das deutsche System der Corporate Governance zwischen Persistenz und Konvergenz

We discuss the development of German corporate governance in light of the hostile takeover of Mannesmann by Vodafone. The paper criticizes the stability hypothesis of Thomas Heinze in KZFSS 4/2001 and demonstrates the deep changes within German corporate governance, which we describe as hybrid convergence. Given trade-offs between corporate growth and profitability, the preferences of German management have changed towards greater emphasis on shareholder returns. This change is evident in the implementation of new profitability targets, end of cross-subsidization and concentration on core competences. Through incremental changes throughout the 1990s, the importance of market mechanisms has increased and been internalized within corporations. German corporate governance is moving toward a U.S. market model through hybrid processes of institutional layering and conversion.     

The geography of corporate production: Urban,industrial, and organizational systems

This paper examines how the territorial organization of corporate production — the extent to which firms connect places in the city system through intraorganizational relationships of ownership and control — is shaped by urban, industrial, and organization factors. Specifically, we study the determinants of the dispersion of corporate production facilities in the U.S. urban system. We analyze the number of U.S. cities and states in which the largest 500 industrial corporations operated plants in 1964 as a function of the characteristics of the location of the corporate headquarters, the predominant industries in which their plants produce, and their organizational structure. We find that corporate dispersion is shaped by some of the same factors that have been shown to organize the market-based territorial division of labor — the size and functional specialization of cities and the locational requirements of industry. But in addition, organizational attributes — a firm's industrial diversity, its age, and the extent to which it is controlled by families as opposed to managerial coalitions — also influence its geographic dispersion.An earlier version of this paper was presented at the 1983 annual meetings of the American Sociological Association in Detroit, Michigan.     

CORPORATE TAX LAWS, CORPORATE RESTRUCTURING, AND SUBSIDIARIZATION OF CORPORATE FORM, 1981–1995

Between 1981 and 1995 the dominant form of Fortune 500 firms changed from the multidivisional form to the multisubsidiary form (Zey and Camp 1996). The explanation for the movement toward subsidiarization originates in changes during the late 1970s and 1980s in the political economy, the relationship between corporations and capital, and the regulation of corporations. As a result of the declining capital accumulation of the 1970s, the federal government instituted two measures of corporate welfare, the Tax Reform Act of 1986 (TRA86) and the Revenue Act of 1987 (RA87), that provided corporations with nontaxable ways to restructure their acquisitions and divisions as subsidiaries. Thus, by the process of subsidiarization, corporations were able to continue capital flows. We examine the increase in subsidiarization from 1981–1995 as a means of assessing the utility of four theoretical perspectives to explain change in corporate form. A one-way random effects panel analysis demonstrates how corporate financial conditions, national business laws, and organizational characteristics combine to affect the rate of subsidiarization of U.S. corporations. Separate panel models for 1981–1985 (pre- TRA86) and 1986–1995 (post- TRA86) reveal that changes in corporate tax laws affect capital accumulation and result in significant change in corporate form. This analysis supports the structural political economy contingency theory arguing that change in capital accumulation, brought about by macro changes in political legal conditions of corporations, leads to the transformation of corporate form.     

THE TRANSFORMATION AND SURVIVAL OF FORTUNE 500 INDUSTRIAL CORPORATIONS THROUGH MERGERS AND ACQUISITIONS, 1981–1995

The 1980s leveraged buyouts followed by the 1990s stock swap mergers represent the most dynamic period in U.S. business history. Using Cox regression with time-varying covariates, we examine the relationships among changes in corporate mergers and acquisitions, changes in corporate diversification strategies, and the transition from the multidivisional form (MDF) to the multisubsidiary form (MSF) of the largest Fortune 500 U.S. parent corporations. Consistent with the political economy contingency theory of accumulation (PECTA), our findings show that acquisition risk is reduced as a function of size, product and industry diversification, and percentages of shares held by institutional investors. Acquisition risk is increased by holding units in a multidivisional rather than a multisubsidiary form, higher returns to shareholders, higher divestitures, higher production to administrative imensity, and surviving previous takeover attempts. The political-legal institutions of the state have increasingly engaged in activities that are supportive and profitable for industrial and financial corporations. The actions of the state are increasingly aligned with the interests of capital.     

The relationship between lead and crime

This study investigates the association between air-lead levels and crime rates across 2,772 U.S. counties. Data for the analysis come from the Environmental Protection Agency, the Bureau of Census, and the Federal Bureau of Investigation. Results suggest that air-lead levels have a direct effect on property and violent crime rates even after adjusting for general levels of air pollution and several structural covariates of crime. We also find that resource deprivation interacts with air-lead levels. The association between air-lead levels and crime rates-property and violent-is strongest in counties that have high levels of resource deprivation and weakest in counties that have low levels of deprivation. This interaction is consistent with arguments and evidence in the health care literature that populations most at risk of lead poisoning are least likely to get the resources required to prevent, screen, and treat the illness.     

Corporate Transformation to the Multilayered Subsidiary Form: Changing Economic Conditions and State Business Policy

Despite the prevalence of corporate change in the last decade, researchers have not examined whether a change occurred in the corporate form. The analysis here presents a historical case study of a large U.S. corporation and quantitative data on the largest 100 U.S. industrial corporations. The case study examines the effects of changing economic conditions and state business policy on the corporate form. This study demonstrates that the corporation changed to a multilayered subsidiary form (MLSF): a corporation with a hierarchy of two or more levels of subsidiary corporations with a parent company at the top of the hierarchy operating as a management company. Whereas rising debt and increasing competition in the 1970s and 1980s undermined corporations' capacity to accumulate capital, changes in state business policy in the mid-1980s provided the political-legal structure for corporations to restructure their assets as subsidiary corporations tax free. Changes in state business policy also provided a means for corporations to merge, acquire, and spin-off subsidiary corporations tax free. Quantitative data on the 100 largest U.S. industrial corporations show that while the multidivisional form decreased, the MLSF increased between 1981 and 1993. Findings support a capital dependence framework. The MLSF constructs liability firewalls among corporate entities and creates internal capital markets, reducing dependence on external capital markets.     

Governing Global Supply Chain Sustainability through the Ethical Audit Regime

Over the past two decades multinational corporations have been expanding ‘ethical’ audit programs with the stated aim of reducing the risk of sourcing from suppliers with poor practices. A wave of government regulation—such as the California Transparency in Supply Chains Act (2012) and the UK Modern Slavery Act (2015)—has enhanced the legitimacy of auditing as a tool to govern labor and environmental standards in global supply chains, backed by a broad range of civil society actors championing audits as a way of promoting corporate accountability. The growing adoption of auditing as a governance tool is a puzzling trend, given two decades of evidence that audit programs generally fail to detect or correct labor and environmental problems in global supply chains. Drawing on original field research, this article shows that in spite of its growing legitimacy and traction among government and civil society actors, the audit regime continues to respond to and protect industry commercial interests. Conceptually, the article challenges prevailing characterizations of the audit regime as a technical, neutral, and benign tool of supply chain governance, and highlights its embeddedness in struggles over the legitimacy and effectiveness of the industry-led privatization of global governance.     

Online strategic communication: A cross-cultural analysis of U.S. and Chinese corporate websites

This study applied a cultural divergence approach to examine online marketing interactivity and corporate public image on corporate websites. It analyzed different online strategic communication of corporate websites from two different nations—the United States and China. Results indicated that U.S. corporations were more likely to highlight online marketing interactivity and social responsibility, which integrated marketing and public relations as their online communication strategy. Chinese corporations provided more online spaces for the consumer–consumer interactions and emphasized corporation-oriented information.     

Spatial Heterogeneity,Social Capital,and Rural Larceny and Burglary

We explore the role of social capital in explaining patterns of rural larceny and burglary crime rates. We find consistent evidence that higher levels of social capital tend to be associated with lower levels of rural property crime rates. We also find that there is significant spatial heterogeneity in the underlying data‐generating process. This spatial heterogeneity suggests that relying on global estimates from classical statistical methods, such as least squares, may lead to erroneous policy recommendations at the local level. We suggest that some of the inconsistencies in the ecological empirical criminology literature might be explained by spatial heterogeneity.     

The effects of governing board configuration on profound organizational change in hospitals

This study extends the literature on governing boards and organizational change by examining how governing board configurations have influenced profound organizational change in U.S. hospitals, and the conditions under which such change occurs. Hospitals governed by boards that more closely resembled a corporate governance model were more likely to experience positive changes such as diversification and merger and less likely to undergo negative changes such as closure. Organizational performance influenced change, but largely independent of governance configurations. Only in the case of closure did we find that governance configuration operated jointly with organizational performance.     

Israel vs. BDS: corporate social responsibility and the politics of human rights

ABSTRACT

This is a case-study of an organized Israeli effort to disengage the issue of corporations in the Palestinian Occupied Territories from the global CSR framework of human rights. At the centre of the study are three international CSR conferences which took place in Israel, hosting players in the global industry of corporate risk-management indices. The study underscores the importance of studying the micro-politics of producing and implementing human rights norms across the globe; designating micro-politics as the sum of informal exchanges among players who share a common platform of expertise. We find that the Israeli conveners leveraged the CSR conferences to (1) promote a campaign against BDS among CSR players, (2) invoke BDS as a trope for dissociating the human rights framework of CSR from corporate activities in the OPT, and (3) frame the activities of corporations in the OPT in terms of labour opportunities and economic development.     

Transnational business feminism: Exporting feminism in the global economy

Business feminism is a brand of feminism that privileges women's advancement in the corporate hierarchy and centres corporations as the ultimate purveyors of gender equity. While scholars have critiqued this formulation, little empirical research has analysed the processes that guide the dissemination and translation of business feminism in organizational settings within global corporate networks. This article advances scholarship on the global processes that drive the export of business feminism logics. We analyse the process of dissemination of business feminism from the headquarters of multinational corporations to corporate hubs located in Hungary. This process relies on women executives who are charged with translating policies and practices originating in the headquarters of western corporations. In‐depth interviews with women executives charged with implementing corporate policies reveal the ways in which business feminism is interpreted, modified and/or resisted by actors within organizational settings.     

The global corporate elite after the financial crisis: evidence from the transnational network of interlocking directorates

What impact did the recent financial crisis have on the corporate elite's international network? Has corporate governance taken on an essentially national structure or have transnational networks remained robust? We investigate this issue by comparing the networks of interlocking directorates among the 176 largest corporations in the world economy in 1976, 1996, 2006 and 2013. We find that corporate elites have not retrenched into their national business communities: the transnational network increased in relative importance and remained largely intact during the crisis lasting from 2006 to 2013. However, this network does not depend – as it used to do – on a small number of big linkers but on a growing number of single linkers. The network has become less hierarchical. As a group, the corporate elite has become more transnational in character. We see this as indicative of a recomposition of the corporate elite from a national to a transnational orientation.     

Violence in the Suites

Abstract

This article examines violence “in the suites” of corporate America. It argues that the magnitude of corporate violence overshadows aggression, and lawbreaking transactions associated with street crime. Specifically, the paper looks at America's Prison Industrial Complex, and privatization as classic examples of the breadth and intensity of corporate malfeasance and structural violence. Suggestions are made on how to humanize the behavior of corporations.     

State-Corporate Relationships in an Era of Shifting Regime: The Case of Corporate Law Reform in Israel

Different aspects of the relationship between state and economy have traditionally been examined, yet corporate governance and specifically corporate law have received less attention. This article focuses on the legislation of the new corporate law in Israel at the end of the 1990s, which took place during regime transformation from an interventionist state to a regulatory state. The article makes specific reference to three disputes: the lifting of the corporate veil, the separation of the positions of chairman of the board and chief executive officer, and the obligation of private firms to disclose financial reports. This article suggests that despite the transformation of the regime, state actors have continuously been involved via corporate law in the governance of corporations and their relationship with the environment. However, corporate law enables corporations to constrain state power and the state's influence on property rights.     

Transformation des deutschen Unternehmenskontroll-Systems?

This study contributes empirically to the corporate governance debate that has been revived since Mannesmann was taken over by Vodafone Airtouch. Whereas the German corporate governance system has long been described as a network arrangement of mutually interlinked large companies and banks, its British counterpart is a market for corporate control. Against this background, Mannesmann can be either regarded as an anomaly that contradicts previous evidence, or as an indicator of a major systemic shift. Examination of these two hypotheses on the micro and meso level reveals that the German corporate governance-system is in a hybrid state: while most large German companies are seemingly not affected by institutional changes since the mid 1990s, a few, highly internationalized corporations can be said to be exposed to conditions similar to that of the British market for corporate control. In 1999 Mannesmann was one of them. Thus, there has been a segmentation of large German companies with respect to corporate governance on the aggregate level. However, an active market for corporate control — such as the British one — is not in sight.     

Privileging an activist vs. a corporate view of public relations history in the U.S.

This article elaborates on the argument that the history of U.S. public relations has been distorted by the emphasis on corporate functions of public relations. The dominant corporate-centric view of U.S. public relations history often claim that public relations developed as a response to activists who attempted to interfere with business operations. That myopic, corporate-centric view has perpetuated a negative view of public relations as merely a tool of “big business”. In the past as well as the present, corporations have been learning from and co-opting activists’ innovative public relations techniques. By alternatively grounding U.S. public relations history in the works of activists, we open possibilities for re-imagining the field and legitimizing activists’ works as a positive, central component in public relations theory and research. We end by providing resources educators can utilize to teach a more balanced view of public relations history in the U.S.     

The cosmopolitan organization — an essay on corporate accountability

Abstract Transnational corporations increasingly seek to present a vision of social responsibility alongside the business vision. This reflects greater awareness of ‘the world as one single place’, of global risk scenarios, and the politics of doing business. There are also demands for greater transparency and accountability in corporate actions by state representatives, grassroots movements and organized consumers. Transnational corporations now aim to be socially responsible and to engage in ‘corporate citizenship’ by adhering to voluntary codes of conduct, social accountability standards, etc. This discourse of corporate accountability is part of a discourse of globality, or ‘globe talk’, a vital component of contemporary world culture, largely produced, diffused, and sustained by organizations with expansive ambitions of regulating global business; transnational corporations, business associations, international organizations, NGOs and INGOs. Awareness of the global nature of trade and capitalism, the associated risk scenarios, and the attempts at approaching something like a humane globalization by the setting up of ethics standards and codes of conduct, may be understood as a particular case of ‘worldism’. This ‘worldism’ is foundational, with universalizing and homogenizing claims. ‘Corporate citizenship’ and ‘accountability’ are therefore treated as a form of organizational culture that involves a particular kind of moral cosmopolitanism.     

CORPORATE CONTROL AND PERFORMANCE IN THE 1930s

This paper tests the Berle and Means thesis that the dissemination of corporate ownership has allowed corporate managers to pursue goals other than profit maximization. Using piece-wise linear regression analysis with a sample of large U.S. corporations in the 1930s, a nonlinear relation is estimated between the degree of dominant stockholder control and corporate performance. The empirical results lend some support for the Berle and Means view of the "modern" corporation. In particular, a small degree of stockholder control is found to be associated with a low level of corporate performance, ceteris paribus.