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Local management respons to corporative restructuring

a case study of a company town

Sundström, Agneta and Hyder, Akmal (2008). Local management respons to corporative restructuring. Business and society review. 113 :3 , 375-402
[Research article]

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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.

Authors/Creators:Sundström, Agneta and Hyder, Akmal
Title:Local management respons to corporative restructuring
Subtitle:a case study of a company town
Series Name/Journal:Business and society review
Year of publishing :2008
Page range:375-402
Additional Information:Published by Wiley-Blackwell in Business and Society Review
Publication Type:Research article
Article category:Scientific peer reviewed
Version:Accepted version
Full Text Status:Public
Subjects:(A) Swedish standard research categories 2011 > 5 Social Sciences > 502 Economics and Business > Business Administration
Keywords:company town, restructuring, CSR, local relationships
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Additional ID:
Type of IDID
ID Code:3680
Department:(NL, NJ) > Dept. of Economics
Deposited By: Agneta Sundström
Deposited On:14 Apr 2009 00:00
Metadata Last Modified:02 Dec 2014 10:24

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