Corporate Governance

Purpose – The purpose of this paper is to note the remarkable expansion of corporate social responsibility (CSR) throughout the late 1990s and early 2000s. Taking this as point of departure, it aims to discuss the potential for aligning CSR-oriented industrial self-regulation with public governance to fill some of the governance gap in the global economy.

Design/methodology/approach – The paper provides a conceptual discussion, empirically underpinned by three case studies.

Findings – The paper finds that it is plausible, and empirically supported by the case studies, to conceive of a considerable role for CSR based self-regulation in the global economy. A central precondition is the ability of civil society organizations to establish “moral rights” as credible voices for “just causes” in a media-driven communicative society, and thereby put pressure on brand sensitive industry. The paper finds that corporate self-regulation may fill a larger part of the governance gap if public policy is oriented to engage with industry in a partnered mode.

Research limitations/implications – The paper establishes a conceptual base for exploring the governance implications of CSR, casuistically underpinned by three case studies. Further studies are needed, however, to explore the scale and scope of partnered governance in the global economy.

Practical implications – The paper provides insights into an approach to increase governability of the global economy.

Originality/value – The originality of the paper lies in exploring the implications of CSR for governance, and for highlighting how the governance potential may be enhanced by reorientation of public policy.