Social standards have become important tools in corporate governance. They are often presented as voluntary initiatives in CSR and are generally based on the principle of multi-stakeholder collaboration as a means to gain legitimacy. Yet, based on a case study of a company in the textile industry, the paper shows that not all CSR standards are equally valued and that the adoption of particular CSR standards can be the result of external constraints on managerial discretion, e.g. emerging from business partners (...) and activist groups. (shrink)

Private politics (Baron 2003), i.e. attempts by various groups in society to influence corporate behavior without recourse to the state regulation or the law, has been an increasingly significant theme over the past few decades, and is likely to remain prominent in the years ahead. Yet, the occasional success of such attempts remains difficult to understand, because from the firm’s perspective, such groups lack a well-developed basis for negotiation and bargaining. Following this line of reasoning, we discuss how such groups (...) try to influence firms, and whether how they do so today is any different from earlier periods in time. (shrink)