Chapter

Setting the Scene

Grahame F. Thompson

in The Constitutionalization of the Global Corporate Sphere?

Published in print October 2012 | ISBN: 9780199594832
Published online January 2013 | e-ISBN: 9780191746079 | DOI: http://dx.doi.org/10.1093/acprof:oso/9780199594832.003.0001
Setting the Scene

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This chapter introduces the book by situating the analysis within the increasing uncertainties and vulnerabilities facing the corporate world in the wake of the 2007/8 financial crisis. These uncertainties arise because economic stability has yet to return, innovation is rapidly advancing, and large-scale geopolitical adjustments are unfolding. Firms traditionally faced problems of their organizational, financial, and legal reproduction, but in the contemporary commercial environment they are facing a new challenge: their political reproduction. A corporate response to these current vulnerabilities is to increasingly seek protection by claiming to be socially responsible, to act in a citizenly manner, and to fulfil various civic duties that states now find hard to meet. This puts companies into a parallel societal governance arrangement alongside the public authorities and provides the context in which they become subject to new political scrutiny and find a need to politically justify themselves.

Keywords: globalization; corporate uncertainty; economic vulnerability; corporate political reproduction; political legitimacy

Chapter.  6484 words.  Illustrated.

Subjects: International Business

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