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Corporate Legitimacy in a Risk Society

Corporate Legitimacy in a Risk Society. Three Models of Corporate Legitimacy (legitimacy is a generalized percepction or assumption that actions of an entity are desirable, proper) Classical (Freidman) Stakeholder Political Corporation

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Corporate Legitimacy in a Risk Society

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  1. Corporate Legitimacy in a Risk Society • Three Models of Corporate Legitimacy (legitimacy is a generalized percepction or assumption that actions of an entity are desirable, proper) • Classical (Freidman) • Stakeholder • Political Corporation • rejects primacy of profit-making function of organization. Stakeholder + demanding that corps. Adopt a clear set of moral and ethical values, which relate to the public, both locally and globally, and which guide corporate actions irrespective of whether it is explicitly required by law, or demanded by the public.

  2. Risk Society • Theory of risk society (Beck) emphasizes the fundamental failure of industrial society in controlling the growing environmental threats..which are products of its success. • In this society science is not perceived as a credible source of reassurance and safety. Science has become too specialized and reductionist. No “Big Picture”. • Shell emphasized painstaking detailed analysis (reductionist) “case-by-case” • reductionist rationality vs. common-sense rationality (public) • It is argued that Brent Spar marked a shift from the dominance of techno-scientific rationality to broader and morally based common-sense rationality with questioning of representative democracy and the authority of science.

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