Corporations in the political arena: an ethical framework. Issue 2 (24th January 2020)

• Record Type: Journal Article
• Authors: Barron, Andrew; Stacey, Stephen
• Is Part Of: Journal of business strategy. Volume 42:Issue 2(2021)
• Page Start: 116
• Page End: 125
• Publication Date: 2020-01-24
• Subjects: Performance management systems -- Business ethics -- Responsible business -- Corporate political activity -- Decision-making authority -- Organisational architecture; Business planning -- Periodicals; 658.4005
• DOI: 10.1108/JBS-06-2019-0119
• Languages: English
• ISSNs: 0275-6668

Abstract

Abstract : Purpose: This study aims to explore how firms can configure their organisational architectures in ways that limit ethical transgressions of their corporate political activities (CPAs). Design/methodology/approach: This conceptual work is informed by existing research into organisational architecture and ethical decision-making, combined with illustrative examples of firms' political actions derived from secondary and primary data sources. Findings: Findings suggest that the ways that firms assign decision-making authority and design performance management systems can, depending on their combined configuration, either help or hinder the promotion of ethical CPA practice. Practical implications: The study provides practitioners with a useful tool for reflecting on the organisational levers they can pull to shield their firms from the financial and reputation damage associated with objectionable conduct in their political activities. Originality/value: Whilst previous research studies emphasise the importance of statutory guidelines, self-regulation or corporate codes for promoting ethical CPA, this study argues that organisational design is an important yet overlooked antecedent of a firm's ability to practice CPA ethically and responsibly.