Corporate (social) responsibility in state-business relations from the perspective of critical state theory
The Evolving Role of Corporate Responsibility in Authoritarian and Developmentalist Contexts
In an era of global economic transformation, the understanding and implementation of corporate social responsibility (CSR) have undergone significant changes. Once viewed as voluntary corporate actions for public welfare, CSR is now increasingly seen as an integral part of business strategy and a growing focus for regulatory authorities. However, this evolution of corporate responsibility cannot be fully grasped without examining the dynamic interplay between state power and corporate influence.
From the perspective of critical state theory, the relationship between the state, business, and society is deeply entangled, reflecting the complex balance of political forces. The state’s role in structuring corporate behavior and the influence of shifting political elite networks on corporate responsibility practices are crucial considerations. By adopting Jessop’s strategic-relational approach (SRA), this article explores how state-business relations in specific national contexts, particularly those characterized by authoritarianism and developmentalism, have shaped the evolving landscape of corporate responsibility.
The analysis delves into the historical case of early modern China, from the late Qing period to the Republican era, to uncover the profound impact of state-business symbiosis on the development of corporate responsibility. This examination reveals how the strategic interaction between political elites and emerging business entities, the modes of state power articulation, and the construction of hegemonic visions have profoundly influenced the discourse and practices of corporate responsibility in authoritarian and developmentalist nation-states.
The Shifting Landscape of Corporate Responsibility
The concept of corporate social responsibility has evolved significantly, reflecting the changing dynamics between business, state, and society. Traditionally, CSR was viewed as voluntary corporate actions for public welfare beyond legal requirements. However, this perspective has become increasingly challenged as corporate responsibility is now seen as an integral part of business strategy and a growing focus for regulatory authorities (Aseeva, 2021; Lin, 2021).
From the lens of critical state theory, the interactions surrounding corporate responsibility are not merely about aligning business practices with social values but are deeply entangled with the dynamic strategic relationships between state power, corporate influence, and societal expectations. The state’s role in structuring corporate behavior and the influence of shifting political elite networks on corporate responsibility practices are crucial considerations.
This article argues that the evolution of corporate responsibility can be best understood through the lens of critical state theory, which reveals how intertwined and reactive business-state relations have shaped corporate responsibility over time. By adopting Jessop’s strategic-relational approach (SRA), this study examines the role of dynamic state-business relations in the evolution of corporate responsibility in the historical context of the modern Chinese state.
Understanding Corporate Responsibility through the Lens of Critical State Theory
Critical state theory is a conceptual framework that seeks to understand the role and function of the state in society, particularly in relation to power, inequality, and social change. From this perspective, the state is not merely a static set of institutional agencies but a dynamic network of relations spanning social, economic, and political domains.
The strategic-relational approach (SRA) proposed by Jessop provides a robust analytical framework for examining the state as a dynamic and relational entity. This approach challenges the traditional view of the state as a monolithic entity or a neutral arbiter between the public and businesses, and instead examines corporate responsibility within the dynamic balance of political forces.
Through the lens of SRA, corporate responsibility can be seen as a response to the shifting dynamics of state-business relations, influenced by trends such as deregulation, market liberalization, and the internationalization of business norms brought about by changes in political elite networks at both local and global levels.
The Historical Case of Corporate Responsibility in Early Modern China
The analysis of early modern China, spanning the late Qing period to the Republican era, provides a compelling case study to explore the evolution of corporate responsibility within the context of state-business relations.
During the late Qing period, the emergence of modern corporate organizations and the state’s role as a crucial external political stakeholder exemplified the interconnectedness of business and state interests. The rise of local Han elites and business leaders within the state power network illustrated the social basis of the state, where political and economic elites collaborated to shape national policies, including those related to corporate responsibility.
Chambers of commerce, as the first officially recognized non-governmental organizations in China, played a pivotal role in representing the interests of business elites and their involvement in national political and social reforms. The interactions between these chambers and the state highlighted the modes of representation within the state’s decision-making processes, demonstrating the fluid and dynamic nature of state-business relations.
The historical case of China provides critical insights into the implications of corporate responsibility in contemporary contexts, particularly in authoritarian and developmental states. The alignment of corporate responsibility with state objectives and the strategic mobilization of business elites highlight the potential for corporate responsibility to be co-opted by political and economic interests, raising important questions about the genuine impact of corporate responsibility initiatives on public welfare and human rights.
Implications for Contemporary Corporate Responsibility Discourse
The application of Jessop’s strategic-relational approach to the historical case of early modern China offers a nuanced understanding of corporate responsibility within the context of an authoritarian and developmentalist nation-state. By viewing the state as a dynamic and relational entity, this analysis has illuminated the complexities and contradictions inherent in corporate responsibility practices.
In early modern China, the interplay between state strategies, business interests, and socio-political transformations shaped the development of corporate responsibility. The integration of business elites into state governance, the legislative and policy interventions, and the mobilization of corporate actors for national development illustrate the multifaceted nature of corporate responsibility, which on the one hand aligns with state elites’ interests to promote the state’s developmental projects for national revival, and on the other hand, mobilizes social forces in their different kinds of state projects for social and political change.
The insights gained from this historical analysis are relevant for contemporary discussions on corporate responsibility, particularly in authoritarian and developmental states. The strategic use of corporate responsibility by the state, the potential for elite co-option, and the implications for public welfare and human rights are critical considerations for policymakers and scholars alike. Future research should continue to explore the dynamic and relational aspects of state-business interactions, utilizing frameworks like the SRA to deepen our understanding of corporate responsibility in diverse political and economic contexts.
