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Should business have ‘a sense of morality’?: Company director views on corporate engagement with socio-political issues
Institution:College of Business, Government and Law, Flinders University, Sturt Road, Bedford Park, South Australia 5042, Australia
Abstract:Increasingly, companies are expected to engage with, or be responsive to, their publics to achieve social acceptance or to be perceived as legitimate. The expectation manifests, in part, through beliefs that companies should engage with socio-political issues. This important component of public relations practice is examined through a qualitative analysis of interviews undertaken with 23 experienced Australian company directors. The empirical research identifies and explores a tension between the contemporary corporation as an amoral agent while also increasingly responsive to pressures introduced by external expectations, reflected in growing attention to the concept of social licence to operate. When resolving to engage with socio-political issues, directors were predominantly motivated by the company’s best interests and ‘good business’. This necessitated identifying issues relevant to key stakeholders and issues that tied to corporate purpose, identity or knowledge. However, some evidence is apparent of director willingness to engage with issues not directly related to core business or corporate purpose. This may reflect support for an enhanced social licence to operate or even in pursuit of wider societal legitimacy-building, pointing the way to potential future increases in corporate social engagement.
Keywords:Public relations  Social license to operate (SLO)  Corporate advocacy  Socio-political issues  Board of directors  Qualitative research
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