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Local management response to corporative restructuring: a case study of a company town
University of Gävle, Department of Business Administration and Economics, Ämnesavdelningen för företagsekonomi. Swedish University of Agricultural Sciences (SLU), Uppsala, Sweden.ORCID iD: 0000-0003-3258-0671
University of Gävle, Department of Business Administration and Economics, Ämnesavdelningen för företagsekonomi. (ICM)
2008 (English)In: Business and Society Review, ISSN 0045-3609, E-ISSN 1467-8594, Vol. 113, no 3, p. 375-402Article in journal (Refereed) Published
Abstract [en]

This is a case study of top management in a Swedish pulp industry at Skutskär. After decades of proactive response to change, starting in 1976 the pulp industry experienced a rapid and significant restructuring. In 1992, and after a prolonged hold on local investments, came a large-scale investment with major labor reductions, which created a local crisis. The aim of this study is to analyze how top managers of a local business plant perceive and explain their citizenship relationship to the community of the company town during a transition period from 1976 to 2007. Our study shows that too much reliance on top management cost reduction requirements and not caring, or underscoring, local social concerns created gaps and local stakeholder distrust. We discuss how prolonged distrust of the company to bear social responsibility ended up in a broken relationship between the company and the local community. Our case indicates at least two problems that must be handled for successful corporate citizenship. First, the traditional control-oriented management view is too narrow and not adjusted to today's citizenship reality, including how to handle corporate social responsibility. Second, we can see a possibility where the conceived needs on a global corporate level may lead to situations to obscure local needs and consequences.

Place, publisher, year, edition, pages
2008. Vol. 113, no 3, p. 375-402
National Category
Business Administration
Identifiers
URN: urn:nbn:se:hig:diva-2139DOI: 10.1111/j.1467-8594.2008.00325.xScopus ID: 2-s2.0-51449088651OAI: oai:DiVA.org:hig-2139DiVA, id: diva2:118801
Available from: 2008-06-23 Created: 2008-06-23 Last updated: 2018-03-13Bibliographically approved
In thesis
1. Globalization, CSR and Business Legitimacy in Local Relationships
Open this publication in new window or tab >>Globalization, CSR and Business Legitimacy in Local Relationships
2009 (English)Doctoral thesis, comprehensive summary (Other academic)
Place, publisher, year, edition, pages
Uppsala: Swedish University of Agricultural Sciences, 2009. p. 56
Series
Acta Universitatis Agriculturae Sueciae, ISSN 1652-6880 ; 2009:23
National Category
Business Administration
Identifiers
urn:nbn:se:hig:diva-5700 (URN)978-91-86195-70-0 (ISBN)
Public defence
(English)
Available from: 2009-10-19 Created: 2009-10-19 Last updated: 2018-03-26Bibliographically approved

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Sundström, AgnetaHyder, Akmal S.

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