CORPORATE POWER AND LEGITIMACY IN BUSINESS

Powerful Essays
Topics: Sociology
CORPORATE POWER AND LEGITIMACY
The Concept of Power in Business
Max Weber: defined power as “The probability that one actor within a social relationship will be in a position to carry out his own will despite resistance."
Pfeffer: "The potential ability to influence behavior, to change the course of events, to overcome resistance, and to get people to do things that they would not otherwise do."
Power is the force or strength to act. Business power is the force behind an act by a company, industry, or sector.
Its primary source is a grant of authority from society, stemming from the social contract, to convert resources efficiently into needed goods and services.
It is legitimate when it is exercised rightfully, or in keeping with the social contract.

The concept of power needs to be distinguished from authority and influence.
Authority is the right to direct others and ask them to do things which they would not otherwise do, but it is legitimate and is exercised in the working of organizations.
Authority is different from power because of its legitimacy and acceptance in an organizational contex.
Influence is conceived as more broader and it is the ability to alter actions of other people in general ways by changing their satisfaction criteria and thus improve their performance.
Leadership is broader than power and indicates a willingness on the part of the follower to follow in the absence of authority.

Corporations have tremendous power of to change society through their actions. Corporate power has an impact on society at two levels. i On the surface level it is the direct cause of visible, immediate changes. ii On the deeper level it shapes society over time through the aggregate, indirect, and unforseen changes of industrial growth.

corporate power is exercised in seven spheres corresponding to the key business environments described in earlier (here power over individuals is included in place of the internal environment).
1 Economic power comes from

You May Also Find These Documents Helpful

  • Powerful Essays

    Asset Pricing Model (CAPM hereinafter). The model that was developed by William F. Sharp of the Rand Corporation, and the first publications regarding the model appears in 1952 that were updated in 1959 (Kuhlemeyer, 2004). Since the very introduction o the model, the financial experts in different parts of the world have been using the model and basing their decisions on the basis of the model. However, due to changes in the environmental conditions and better research in the field of financial management…

    • 3216 Words
    • 13 Pages
    Powerful Essays
  • Good Essays

    The Effect of Temperature on the Rate of Diffusion Damsel C. Bangcal Aira May V. dela Cruz Jacqueline L. Lacuesta Richelle Jem P. Jobog Group 1 Section U-2L November 17, 2014 ___________ 1A research proposal submitted in partial fulfillment of the requirements in General Biology I Laboratory under Proj. Joan O. Adajar, 1st semester, 2014-2015. INTRODUCTION Molecules undergo constant motion and move in regions with a higher concentration to a lower concentration…

    • 744 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Oi[O[O[

    • 10498 Words
    • 42 Pages

    PDF processed with CutePDF evaluation edition www.CutePDF.com THE HIGH COURT OF DELHI AT NEW DELHI (ORIGINAL JURISDICTION) COMPANY APPLICATION NO. (M) 123 of 2012 IN THE MATTER OF THE COMPANIES ACT, 1956 (1 OF 1956) SECTIONS 391 & 394 AND IN THE MATTER OF SCHEME OF AMALGAMATION OF BRAHMAPUTRA INFRAPROJECT LTD WITH BRAHMAPUTRA INFRASTRUCTURE LTD IN THE MATTER OF BRAHMAPUTRA INFRAPROJECT LTD APPLICANT/ TRANSFEROR COMPANY (A Company incorporated under the provisions of the Companies Act, 1956…

    • 10498 Words
    • 42 Pages
    Good Essays
  • Powerful Essays

    Assignment O N Bureaucracy

    • 1785 Words
    • 8 Pages

    Page |2 Bureaucracy A bureaucracy is a form of organization based on logic, order, and the legitimate use of formal authority. Bureaucracies are meant to be orderly, fair, and highly efficient. The Bureaucratic approach to management was developed around the start of twentieth century by an important writer, Max Weber, a German Sociologist. The bureaucratic approach depends on five principles that are; 1) 2) 3) 4) 5) Specialization of work Formal Rules & Procedures Impersonality Well-defined…

    • 1785 Words
    • 8 Pages
    Powerful Essays
  • Powerful Essays

    B O C O Th C T P Die M

    • 2434 Words
    • 9 Pages

    Banking University of HCMC Department of Foreign Language INTERNSHIP REPORT RECOMMENDATIONS TO IMPROVE THE EFFICIENCY OF INTERNATIONAL SETTLEMENT OPERATIONS AT SAIGON BANK FOR INDUSTRY AND TRADE- CHO LON BRANCH Student name : LÊ TRẦN DIỄM Class : DH24AV04 Student code : 030424084025 Instructor : Ms. HOÀNG ANH THƯ Ho Chi Minh City, April 2012 Comment of instructor (teacher)  --------------------------------------------------------------------------------------------…

    • 2434 Words
    • 9 Pages
    Powerful Essays
  • Satisfactory Essays

    CHAPTER – 1 INTRODUCTION 1.1 AN INTRODUCTION TO STUDY In the Indian electronics industry for over 35 years the name O/E/N India Limited has been synonymous with precision, high quality electromechanical components like relays, switches, trimming potentiometers and allied assemblies. This is a report on organizational study conducted in O/E/N India Limited, and is submitted in partial fulfillment of the requirements for the MBA.(Full time) Degree of the Mahatma Gandhi University. I have undertaken…

    • 16455 Words
    • 66 Pages
    Satisfactory Essays
  • Good Essays

    O Me O Life

    • 410 Words
    • 1 Page

    “O Me! O Life!”: An Analysis “O Me! O Life!” uses different types of poetic devices, including: apostrophe, alliteration, and repetition. In the title, and throughout the poem, Whitman uses apostrophe. For example, “O Me! O Life!... of the questions of these recurring;” (Whitman, 1) Another poetic device the author uses is alliteration. In the course of the poem, Whitman uses the vowel sound “o” consistently. Repetition is used all throughout this poem. For illustration, Walt Whitman repeats “O…

    • 410 Words
    • 1 Page
    Good Essays
  • Satisfactory Essays

    m. B.Com. III Gr. A I (N/O Course) B.Com. I Gr. A – I Thursday 07-03-2014 Friday B.Com. II Gr. A – I B.A. III Urdu I (N/O Course) B.Sc. I Chemistry – I B.Sc. II Chemistry – I B.A. I Drawing & Painting – I B.A. II Drawing & Painting – I 08-03-2014 B.Sc. III Chemistry – I (N/O Course) B.Com. I Gr. A – II Saturday 10-03-2014 3.00 p.m. to 6.00 p.m. B.Com. II Gr. A – II B.A. III English Lit. – I (N/O Course) B.Com. III Gr. A – II (N/O Course) B.Sc. II Chemistry…

    • 2401 Words
    • 10 Pages
    Satisfactory Essays
  • Good Essays

    O Level

    • 1273 Words
    • 6 Pages

    w w ap eP m e tr .X w UNIVERSITY OF CAMBRIDGE INTERNATIONAL EXAMINATIONS s er om .c GCE Ordinary Level MARK SCHEME for the October/November 2008 question paper 5054 PHYSICS 5054/02 Paper 2 (Theory), maximum raw mark 75 This mark scheme is published as an aid to teachers and candidates, to indicate the requirements of the examination. It shows the basis on which Examiners were instructed to award marks. It does not indicate the details of the discussions…

    • 1273 Words
    • 6 Pages
    Good Essays
  • Good Essays

    3.3. Atomic H/C and O/C ratio The Atomic H/C and O/C for heavy oil obtained from different HDO solvent is presented in Fig. 2. Conversion and removal of unstable acid, aldehyde, sugar and water might reduce the O/C ratio. The atomic ratio was calculated by the value of water excluded heavy oil, since H/C ratio could also decrease, despite hydrogenation. Compared with that of bio-oil (0.9), atomic O/C ratio was effectively reduced via HDO reaction (0.2-0.8), H/C ratio reduced 1.0-2.0 (compared with…

    • 747 Words
    • 3 Pages
    Good Essays