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.
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.
Across European cities local entrepreneurs are joining forces in new ways, forming collectives to stimulate business growth and innovation and to create a more attractive business environment. The value of such collectives is increasingly recognized by local governments and policy measures to stimulate these initiatives are being developed. Amsterdam hosts different collaborative initiatives, including 39 business improvement districts (BIDs).The Knowledge Mile is such a collective in which shopkeepers, other local SMEs, residents work together to collectively improve a large retail area. The city of Amsterdam is also a stakeholder. Government can fill an important role in enabling the creation of collective resource management in urban settings. However, if effective regulation is missing, citizens and governing bodies have to look for incentives to find new means of addressing governance. As such, the potential for collective management of urban commons may be greater than realized so far, as there is still a lack of knowledge in this area. In this paper, we aim to bridge this gap. By means of an embedded case study approach, we analyze the interaction between the stakeholders in their development of a green zone, the Knowledge Mile Park, in the Wibautstraat. In the coming years, roofs, facades and ground level will be changed through a collaboration of residents, entrepreneurs, researchers, civil servants and students in a metropolitan Living Lab. In this Living Lab, solutions for a healthy and social environment, climate resistance and biodiversity are jointly developed, tested and shown. In our study, we will analyze the role of the governing bodies in such initiatives, and make recommendations how collectives can become more mainstream with new kinds of institutions, without an undue burden on the community.
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