Corporate Organizational Responsibility

In the Corporate Organizational Responsibility (COR) it comes to that, especially executives and managers the consequences make their individual, departmental and divisional decisions back in the overall context of the organization.

description

The central question is what effects an individual decision has on the overall organization. The aim is to prevent decisions that appear sensible for a sub-area from damaging the overall structure of the organization in the long term.

The term appears in connection with the “paradigm of increasing efficiency in the short term”. This paradigm points to the fact that within the company there is a focus on activities that contribute to increasing efficiency in the short term. As a result , it is becoming more and more difficult, sometimes even impossible, to act innovatively, i.e. to try new things, because it is not possible to immediately calculate whether this use of resources will be profitable in the future. Such managerial action is forced through the existing remuneration systems within the organizations. Incentive systems to see the organization as a whole at the center of one's actions rarely exist. Such behavior leads in the long term to make the organization incapable of innovation. The topic is closely related to the question of the "sustainability of organizations".

The term “Corporate Organizational Responsibility” was invented by the management researcher and business consultant Frank Dievernich , who also worked significantly on the concept of path dependency of managers.

literature

• Dievernich, F. (2007): Path dependency in management. How management tools contribute to the management's inability to make decisions and innovate. Stuttgart: Kohlhammer Verlag