understanding how bureaucracies worked. Weber recognized that formal organizations were integral to the cultural transformation of a society, and business organizations were essential to this study. The way in which business is organized affects all aspects of social life and can shape the structure of society over time (Stern & Barley, 1996, p. 146). Large corporations are now so powerful that their decisions affect the welfare of entire states and countries. Large organizations have been essential in raising the standard of living in most Western nations. Organizational theorists are very interested in the impact of large multinational corporations on the society. Their prominence and power greatly increased their cultural and political influence.
With the growth of the power of organizations, two studies were generated. One was concerned with the environmental impact of managerial decisions (Shrivastava, 1995) and the other with the relation between organizational actions and the structure of employment (Bluestone & Harrison, 1982). As a result of their work and the research of other organizations, theorists have laid the foundation for broad, empirical studies of the socioeconomic system in which organizations are the primary actors (Stern & Barley, 1995, p. 149).
Stern and Barley point out that, since Wirth's 1938 study showing how organizational actions shape urban development, researchers have consistently documented the impact of the large corporation on society. Other studies they mentioned were Seeley's 1957 study of corporations' support for community philanthropy, and the 1980 study by Stern and Aldrich on the differences in corporate ownership were found to be di
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