The Paradox of Interdependent Relations in the Field of Social Issues in Management

Abstract

The firm's relationship to its social and public policy environment is fraught with issues whereby individual values conflict with organizational requirements and organizational actions conflict with social goals. The effects that time and scale can have on complex social systems can result in rational individual actions leading to undesirable collective outcomes over time, a paradox of interdependent relations. Recent literature concerning prisoner's dilemma game strategies, the parable of the tragedy of the commons, and the logic of collective action serves as a useful framework for understanding individual/collectivity relationships. These concepts suggest that an integrative approach should be used. Implications for managers and public policy officials are discussed, and research questions are suggested.

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