Barron, Andrew

Corporations in the political arena : an ethical framework / Andrew Barron, Stephen Stacey. - Journal of Business Strategy, 2021. - 116–125 pages. - Journal of Business Strategy (2021) 42 (2): 116–125.

This study aims to explore how firms can configure their organisational architectures in ways that limit ethical transgressions of their corporate political activities (CPAs).
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 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.
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.
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.
In line with organizational design thinking, the authors find that high-performing GA units need to be designed and built using a blend of mutually reinforcing organizational mechanisms. GA units should be staffed by autonomous managers with mixed skills-sets. Moreover, they should not be constrained by formal rules, but instead given autonomy and support to create lateral relations with other business units.
This study provides a “recipe” that managers can follow to create opportunities for the exchange of political information within their firms and enable and motivate GAs practitioners to monitor and influence political developments more effectively.
This research exposes important, organizational antecedents of firms’ political strategies, which have not been systematically explored in the existing literature

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MSc International Business

Performance management systems Business ethics Responsible business Corporate political activity Decision-making authority Organisational architecture