Managing for Responsibility

CHAPTER 6

Corporate Responsibility as the Avoidance of Relevant Inconsistencies^*

Andreas Suchanek

Introduction

The topic of corporate responsibility has gained prominence in the academic field of business administration over the last 25 years or so. Globalization and digitalization have unlocked new opportunities for firms to enter new markets, exploit economies of scale and scope, and drive costs down. However, this development has also created new challenges due to the lack of a stable regulatory framework. Regulations are necessary for maintaining fair competition which fosters societally desirable value creation instead of unsustainable and short-term oriented races to the bottom at the expense of third parties, and sometimes also the competitors ...