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Business and Society

Business and Society

Doctor Kean Birch | Mark Peacock | Richard Wellen | Caroline Hossein | Sonya Scott | Alberto Salazar

(2017)

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Book Details

Abstract

Corporations dominate our societies. They employ us, sell to us and influence how we think and who we vote for, while their economic interests dictate local, national and global agendas.

Written in clear and accessible terms, this much-needed textbook provides critical perspectives on all aspects of the relationship between business and society: from an historical analysis of the spread of capitalism as the foundation of the 'corporate' revolution in the late nineteenth century to the regulation, ethics and exclusionary implications of business in contemporary society. Furthermore, it examines how corporate power and capitalism might be resisted, outlining a range of alternatives, from the social economy through to new forms of open access or commons ownership.


‘The ideal user's guide to the modern world and how we got here. It untangles the thicket of politics and corporate power and gives readers cogent intellectual arguments and an inspiring message that change is possible and already happening.’
Katherine Trebeck, Oxfam GB

‘A fresh, topical and highly engaging introduction to the vital issues surrounding the business world. There is much food for thought in this book: every student of business should read it.’
Geoffrey Hodgson, author of Conceptualizing Capitalism: Institutions, Evolution, Future

‘Goes beyond conventional accounts to critically expose the complex realities of the relationship between business and society. With clarity and originality, the authors illuminate the role of business for shaping society both in the past and present.’
Sara Gorgoni, University of Greenwich

‘A most serviceable compass, timely and effective, for a time in which we are constantly told that society should be treated as just another type of business.’
Fabian Muniesa, Ecole des Mines de Paris

‘Offers a wide ranging introductory interdisciplinary text for the study of the modern world. Rich in conceptual debate, it provides students with incisive analysis and criticism. This is the antidote to the anodyne business school textbook.’
Liam Campling, Queen Mary University of London

'In this tremendous text, Kean Birch and his colleagues show us why we must understand economic activity as embedded in political decisions. This book should be compulsory reading for anyone who wants to understand how another business world is possible.'
Martin Parker, University of Leicester


Kean Birch is an associate professor in the Business and Society programme at York University, Canada. His recent books include: We Have Never Been Neoliberal (2015); The Handbook of Neoliberalism (2016, co-edited with Simon Springer and Julie MacLeavy); and Innovation, Regional Development and the Life Sciences: Beyond Clusters (2016).

Caroline Shenaz Hossein is an assistant professor in the Business and Society programme in the Department of Social Science at York University, Canada. She is the author of Politicized Microfinance: Money, Power and Violence in the Black Americas (2016).

Mark Peacock is professor in the Business and Society programme at York University, Canada. His research interests include the philosophy of economics and the theory and origins of money. He recently published the book Introducing Money (2013).

Alberto Salazar is an assistant professor in the Department of Law and Legal Studies at Carleton University, Canada. His most recent publications appear in the American Journal of Comparative Law and Osgoode Legal Studies Research Papers.

Sonya Scott is a sessional assistant professor in the Business and Society programme at York University, Canada. She is the author of Architectures of Economic Subjectivity: The Philosophical Foundations of the Subject in the History of Economic Thought (2013).

Richard Wellen is an associate professor in the Business and Society programme at York University, Canada. His recent research deals with the political economy of higher education as well as transformations and alternatives in scholarly publishing markets. His books include Making Policy in Turbulent Times: Challenges and Prospects for Higher Education (2013, co-edited with Paul Axelrod, Theresa Shanahan and Roopa Deesai-Trilokekar).


Table of Contents

Section Title Page Action Price
Front cover Front cover
About the book i
Title page iii
Copyright iv
Contents v
Tables and figures vi
Acknowledgements vii
A note on authorship viii
Introduction: a critical introduction to business and society 1
Introduction 1
Definition: Business 1
Definition: Society 1
The market triumphant? 2
Key concept: The market 3
Definition: Free trade 4
Why business and society? 5
Key organization: The (public) corporation 6
Our approach in this book 7
Key concept: ‘Property is theft’ 9
Bibliography 10
1. The emergence of capitalism in Western Europe 12
Introduction 12
Key thinker: Adam Smith 12
Key discussion questions 13
Marxist approaches 13
Key thinker: Karl Marx 13
Definition: Feudalism 14
Max Weber and the Protestant ethic 19
Key thinker: Max Weber 19
Conclusion: Marx, Weber and historical materialism 23
Key methodological issue: Historical materialism 23
Suggested readings 24
Bibliography 24
2. The spread of capitalism 26
Introduction 26
Key discussion questions 27
Mainstream perspectives 27
Key concept: Age of ‘Discovery’ 28
Key thinkers: Classical political economy 29
Critical perspectives 31
Key thinker: David Ricardo 32
Case study 37
Empirical example: the British Empire 37
Key organization: Joint-stock company 38
Conclusion 39
Suggested readings 40
Bibliography 40
3. The corporate revolution 42
Introduction 42
Key discussion questions 43
Mainstream perspectives 43
Definition: Legal personhood 44
Key concept: Grant theory of the corporation 45
Key concept: Invisible hand vs. visible hand? 47
Critical perspectives 48
Definition: General incorporation 50
Definition: Limited liability 50
Case study 51
Key methodological issue: Organization vs. institution? 53
Conclusion 54
Suggested readings 55
Bibliography 55
4. Corporate governance 57
Introduction 57
Key discussion questions 58
The shareholder primacy model 58
Stakeholder models of corporate governance 61
Empirical example: executive pay in Japanese corporations 66
Conclusion 67
Suggested readings 68
Bibliography 68
5. Corporate responsibility 71
Introduction 71
Key concept: Corporate social responsibility (CSR) 72
Mainstream perspectives on corporate responsibility 72
Key discussion questions 73
Critical perspectives on corporate responsibility 79
Empirical example: investment banks and the global financial crisis 82
Conclusion 84
Suggested readings 84
Bibliography 85
6. Corporate power 87
Introduction 87
Key concept: Corporate power 88
Key discussion questions 88
Mainstream perspectives 88
Key methodological issue: Measuring corporate power 90
Critical perspectives 91
Empirical example: Enron and other corporate scandals 97
Conclusion 98
Suggested readings 99
Bibliography 99
7. Global economy and varieties of capitalism 101
Introduction 101
Key concept: Time-space compression 101
Definition: International financial institutions 102
Key organization: Multinational corporations and multinational enterprises 102
Key discussion questions 103
Mainstream perspectives 103
Key methodological issue: Identifying world regions 104
Key methodological issue: Gross domestic product 106
Definition: Foreign investment 106
Critical perspectives 107
Key global institutions: Bretton Woods System 108
Definition: The nation-state 109
Definition: UN Global Compact 110
Key concept: Neoliberalism 111
Empirical example: the ‘BRICS’ countries 112
Key methodological issue: Global value chains 113
Conclusion 114
Suggested readings 114
Bibliography 115
8. Global governance 116
Introduction 116
Definition: Governance 117
Key discussion questions 118
Mainstream perspectives on global governance 118
Key global institution: ‘Gold standard’ 121
Critical perspectives on global governance 125
Conclusion 129
Suggested readings 129
Bibliography 130
9. Global environmental change 132
Introduction 132
Definition: Anthropogenic climate change 133
Key discussion questions 134
Mainstream perspectives 134
Key thinker: Barry Commoner and the ‘four laws of ecology’ 134
Key methodological issue: Defining ‘sustainable development’ 136
Definition: Externalities 137
Definition: Market failure 138
Case study 139
Critical perspectives 139
Definition: Techno-fix 141
Definition: Jevon’s Paradox 141
Empirical example: climate change as an intractable global challenge? 144
Key methodological issue: Climate change denial – who to trust in climate debates? 146
Conclusion 146
Suggested readings 147
Bibliography 147
10. Markets and economic order 149
Introduction 149
Key economic system: Centrally planned economy 150
Key discussion questions 150
Different economic orders 150
Do markets create social order? 155
Key thinker: Friedrich Hayek 156
The internal division of labour 157
Types of economic order: from society to the business organization 160
Conclusion 161
Suggested readings 162
Bibliography 162
11. Economics, capitalism and business: the orthodoxy 163
Introduction 163
Key discussion questions 163
The mainstream perspective 164
Key critique: Going beyond ‘rational economic man’ 167
Definition: Political economy and economics 168
Key concept: The Marginalist Revolution 169
Key thinker: Vilfredo Pareto 171
Critical perspectives 173
Key concepts: Freedom and coercion 174
Conclusion 176
Suggested readings 177
Bibliography 177
12. Political economy and critiques of capitalism: heterodox perspectives 179
Introduction 179
Key discussion questions 180
Dominant heterodox perspectives 180
Key concept: ‘Conspicuous consumption’ 183
Alternative heterodox perspectives 185
Key concept: Social reproduction 187
Case study 190
Conclusion 193
Suggested readings 193
Bibliography 193
13. Business, regulation and policy 195
Introduction 195
Key discussion questions 196
Mainstream theories of regulation 196
Forms of regulation and their challenges 202
Different approaches to regulation and policy-making 204
Case study 205
Conclusion 208
Suggested readings 209
Bibliography 209
14. Ethics and business 211
Introduction 211
Definition: Ethics and morality 211
Key discussion questions 212
What is business ethics? 213
Key methodological issue: Changing forms of business 214
Key ethical issue: How do we learn ethics? The role of the business school 216
Understanding ethical theory outside business ethics 219
Applying ethical theories to business 221
Conclusion 223
Suggested readings 223
Bibliography 224
15. Business and social exclusion 225
Introduction 225
Definition: Informal economy 226
Key concept: Social exclusion 226
Key discussion questions 227
Untangling mainstream and critical perspectives 227
Case study 228
Are global firms exclusionary or an opportunity? 229
Key concept: Social capital as a contested concept 230
Short video: Local women speak out! – Made in Bangladesh 231
Can business be a form of resistance? A critical perspective 232
Key thinker: Marcus Mosiah Garvey (1887–1940) 233
Short video: Organizing business by racially marginalized groups in the United States 234
Empirical example: The Arctic Co-operatives Limited, Canada 236
Conclusion 237
Suggested readings 238
Bibliography 238
16. Resistance and alternatives to corporate capitalism 241
Introduction 241
Key discussion questions 242
Resistance and revolution 242
Definition: Trade union 244
Key thinker: Mikhail Bakunin 244
Everyday alternatives to corporate capitalism 246
Case study 254
Conclusion 255
Suggested readings 255
Bibliography 255
17. Social economy 258
Introduction 258
Key concept: Social economy 259
Key discussion questions 260
Mainstream perspectives 260
Alternative perspectives: the social economy 262
Conclusion 270
Suggested readings 271
Bibliography 271
18. Rethinking ownership: the market vs. the commons 274
Introduction 274
Key discussion questions 275
Mainstream perspectives 275
Key thinker: John Locke 277
Key concept: Intellectual property rights (IPRs) 279
Critical perspectives 280
Case study 281
Key concepts: Rentiership and economic rent-seeking 283
Empirical example: intellectual property rights 286
Conclusion 287
Suggested readings 288
Bibliography 288
Index 290
Back cover Back cover