The external expectations of organizational accountability force organizational leaders to find solutions and answers in organizational (and information) governance to assuage the feelings of doubt and unease about the behaviour of the organization and its employees that continuously seem to be expressed in the organizational environment. Organizational leaders have to align the interests of their share– and stakeholders in finding a balance between performance and accountability, individual and collective ethical approaches, and business ethics based on compliance, based on integrity, or both. They have to integrate accountability in organizational governance based on a strategy that defines boundaries for rules and routines. They need to define authority structures and find ways to control the behaviour of their employees, without being very restrictive and coercive. They have to implement accountability structures in organizational interactions that are extremely complex, nonlinear, and dynamic, in which (mostly informal) relational networks of employees traverse formal structures. Formal processes, rules, and regulations, used for control and compliance, cannot handle such environments, continuously in ‘social flux’, unpredictable, unstable, and (largely) unmanageable. It is a challenging task that asks exceptional management skills from organizational leaders. The external expectations of accountability cannot be neglected, even if it is not always clear what is exactly meant with that concept. Why is this (very old) concept still of importance for modern organizations?In this book, organizational governance, information governance, and accountability are the core subjects, just like the relationship between them. A framework is presented of twelve manifestations of organizational accountability the every organization had to deal with. An approach is introduced for strategically govern organizational accountability with three components: behaviour, accountability, and external assessments. The core propositions in this book are that without paying strategic attention to the behaviour of employees and managers and to information governance and management, it will be extremely difficult for organizational leaders to find a balance between the two objectives of organizational governance: performance and accountability.
When corporate social responsibility (CSR) as a sensemaking process is assessed from a corporate governance perspective, this implies that stakeholders do not only influence companies by promoting and enforcing regulations and other corporate guidelines. They also influence companies by promoting regulation on influence pathways, by demanding that companies develop formal mechanisms that allow companies and stakeholders to discuss and in some cases agree on changes to principles and policies. This perspective suggests that regulation is an outcome of power relations and is, as such, a reflection of certain mental models. As such, mental models reveal the political bias in corporate governance perspectives. For this reason, CSR research needs to be clear about the underlying assumptions about corporate governance, and corporate governance research needs to disclose which mental models of CSR influence the outcomes. Taking a governance perspective on the development of mental models of CSR helps to understand the interaction between CSR and processes of sensemaking at the institutional, organizational and individual levels.
Corporate Social Responsibility affects Corporate Governance as it stretches the accountability of companies beyond its traditional boundaries. This however may conflict with the corporate objective of maximizing stockholder wealth. The paper provides an overview of various academic theories and corporate attitudes on this issue and discusses the merits and disadvantages of the two main governance modes: the stockholder mode and the stakeholder mode.
