Social Responsibility And Corporate Governance: Volume 1: Preconditions For Integration

316 Pages·2020·3.723 MB·English

by  Matjaž Mulej, Grażyna O’Sullivan, Tjaša Štrukelj

PALGRAVE STUDIES IN GOVERNANCE,
LEADERSHIP AND RESPONSIBILITY
Social Responsibility
and Corporate
Governance
Volume 1: Preconditions
for Integration
Edited by
Matjaž Mulej · Grażyna O’Sullivan · Tjaša Štrukelj
Palgrave Studies in Governance, Leadership
and Responsibility
Series Editors
Simon Robinson
Leeds Business School
Leeds Beckett University
Leeds, UK
William Sun
Leeds Business School
Leeds Beckett University
Leeds, UK
Georgiana Grigore
Henley Business School
University of Reading
Henley-on-Thames, Oxfordshire, UK
Alin Stancu
Bucharest University of Economic Studies
Bucharest, Romania
The fall-out from many high profile crises in governance and leadership
inrecentdecades,frombankingtohealthcare,continuestobefeltaround
the world. Major reports have questioned the values and behaviour, not
justofindividualorganizationsbutofprofessionals,industriesandpolit-
icalleadership.Thesereportsraisequestionsaboutbusinesscorporations
and also public service institutions. In response this new series aims
to explore the broad principles of governance and leadership and how
these are embodied in different contexts, opening up the possibility of
developing new theories and approaches that are fuelled by interdisci-
plinaryapproaches.Thepurposeoftheseriesistohighlightcriticalreflec-
tion and empirical research which can enable dialogue across sectors,
focusing on theory, value and the practice of governance, leadership and
responsibility.
Written from a global context, the series is unique in bringing lead-
ership and governance together.The King III report connects these two
fields by identifying leadership as one of the three principles of effec-
tive governance however most courses in business schools have tradi-
tionally treated these as separate subjects. Increasingly, and in particular
withthecaseofexecutiveeducation,businessschoolsarerecognizingthe
need to develop and produce responsible leaders. The series will there-
fore encourage critical exploration between these two areas and as such
explore sociological and philosophical perspectives.
More information about this series at
http://www.palgrave.com/gp/series/15192
ˇ · ·
Matjaz Mulej Graz˙yna O’Sullivan
ˇ ˇ
Tjasa Strukelj
Editors
Social Responsibility
and Corporate
Governance
Volume 1: Preconditions for
Integration
Editors
Matjaž Mulej Graz˙yna O’Sullivan
Faculty of Economics and Business Faculty of Management
University of Maribor UniversityofNaturalSciencesandHuman
Maribor, Slovenia Siedlce, Poland
Tjaša Štrukelj
Faculty of Economics and Business
University of Maribor
Maribor, Slovenia
ISSN 2662-1304 ISSN 2662-1312 (electronic)
Palgrave Studies in Governance, Leadership and Responsibility
ISBN 978-3-030-44171-5 ISBN 978-3-030-44172-2 (eBook)
https://doi.org/10.1007/978-3-030-44172-2
©The Editor(s) (if applicable) andThe Author(s), under exclusive license to Springer Nature
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Foreword
In2008theworldexperienceditsnewglobalsocio-economiccrisis.Over
thenexttenyearstherootofthecrisis,i.e.theneoliberalglobalmonopo-
lizationreplacingtheexpectedfreemarket(Vitalietal.2011)hasproved
to be dangerous for humankind. Companies have decisive powers over
governments(Perkins2012).WithdocumentspassedbyUnitedNations,
e.g.GlobalCompact(UNO2000),andbyInternationalStandardOrga-
nization, such as ISO 26000 (ISO 2010) the humankind responded to
this crisis globally clearly: social responsibility must replace the decisive
persons’ and organizations’ reigning lack of
•
Responsibility for their influences on humans and nature, i.e. society
(rather than bosses’ irresponsibility as the untouchable ones, and
subordinates’ irresponsibility as the non-influential ones);
•
Ethics of interdependence (rather than bosses’ ethics of independence
astheuntouchableones,andsubordinates’ethicsofdependenceasthe
non-influential ones);
v
vi Foreword
•
Holistic aproach (rather than bosses’ onesidedness as the untouchable
ones,andsubordinates’onesidednessasthenon-influentialones;both
groups have usual narrowly specialized professional education, and
they lack a holistic approach by interdisciplinary creative cooperation
therefore).
Thus, the humankind acknowledged via its global bodies that
•
The corporate social responsibility is the way out from the current
humankind’s blind alley; and
•
The way out of this blind alley starts in corporations as the most
influential units of the global society.
•
Therefore a socially responsible corporate governance offers the clue
by implementing the ISO 26000. Unfortunately, many do not use
ISO 26000 in their research on social responsibility (see references
in e.g. Hrast et al., editors, 15 conference proceedings on http://
www.irdo.si/; Potocˇan and Nedelko 2015; Potocˇan et al. 2019a, b;
Lebe and Mulej, editors 2014; Mulej and Dyck, editors 2014—four
volumes; Mulej et al., editors 2016—three volumes in Slovene; Mulej
et al., editors 2019; Štrukelj and Gajšt 2019; Štrukelj and Sternad
Zabukovšek 2019; Štrukelj et al. 2020a, b; Zore 2015).
Via ISO 26000, humankind requires a holistic approach based on inter-
dependence;itcomprisessevencoresubjects(ISO2010,p.4):(1)organ-
isational governance, (2) human rights, (3) labour practices, (4) the
environment, (5) fair operating practices, (6) consumer issues, and (7)
community involvement and development (Fig. 1). ISO 26000 exposes
seven principles of social responsibility as VCEN (i.e. values, culture,
ethics,andnorms)(ISO2010,p.7):(1)accountability,(2)transparency,
(3) ethical behaviour, (4) respect for stakeholder interests, (5) respect for
the rule of law, (6) respect for international norms of behaviour, and (7)
respect for human rights (ISO 2010, pp. 10–14).
Organizations that use these principles when dealing with these
core subjects, have serious human and economic advantages; socially
responsible behaviour prevents costs of e.g. strikes, under-used creativity
and innovativeness of co-workers, losing and replacing good employes,
Foreword vii
Holistic approach
6.8*
Community 6.3*
involvement
and Human rights
development
6.7* 6.2* 6.4*
Coisnssuuemser Ogrgoavnerisnaatniocnea l pLraacbtoicuers
(consumer (consequently (employment)
rights) management)
6.6*
Fair operating 6.5*
practices The
(ethical and environment
responsible
behaviour)
Interdependence
Fig. 1 7 core subjects and two linking categories of social responsibility in ISO
26000 (Notes The figures denote the clause numbers in ISO 26000. When an
explanation is written in parentheses—addition Tjasˇa Sˇtrukelj Source ISO 2010,
p. 4. Editors’ presentation based on publicly available information)
suppliers and customers, absentism and presentism, ruined natural envi-
ronment, curing humans and environment, etc., including global socio-
economic crises, (local and global) revolutions and wars, refugees, etc.
Suchcostsareprevented,henceonemustdiscoverresultsinopportunity
cost and benefit analysis (which authors only point to, here).
This double-blind reviewed scientific monograph addresses all seven
core subjects with contributions from central Europe, which is less
frequently heard as theWest:
•
Chapters 1 and 8 discuss organizational governance (p. 6.2 in Fig. 1);
•
Chapter 2 discusses environment (p. 6.5 in Fig. 1);
•
Chapter 3 discusses labour practices (p. 6.4 in Fig. 1);
•
Chapter4discussescommunityinvolvementanddevelopment(p.6.8
in Fig. 1);
•
Chapter 5 discusses human rights (p. 6.3 in Fig. 1);
•
Chapter 6 discusses fair operating practices (p. 6.6 in Fig. 1);
•
Chapter 7 discusses consumer issues (p. 6.7 in Fig. 1).
viii Foreword
In synergy, chapters are interdependent due to their differences,
completing each other up; they hence make a step towards the holistic
approach together (a fully holistic approach ought to consider totally all
existing attributes, which reaches beyond human capacities even in an
interdisciplinaryteamwork;authors’limitationstosingleprofessionsand
perspectives cause fictitiously holistic approaches; therefore one should
use a ‘dialectical system’ leading to ‘requisite holism’ by covering all and
only crucial perspectives, relations and synergies (Mulej 1974, 1979;
Mulej et al. 2013).
Thus,theeditorsandauthorsofferhumansmoreawarenessandprac-
ticeofsocialresponsibilityinandviathecorporategovernancewiththese
books. Editors and authors talk to academics, other scholars, students
and practitioners in organizations and local communities. The point
addresses increasing of human creativity and wellbeing.
Maribor, Slovenia Prof. Emer. Dr., Dr. Matjaž Mulej
Assist. Prof. Dr.Tjaša Štrukelj
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