The previous chapters followed through the first two phases of corporate responsiveness to social and legal responsibility issues: management commitment, and the acquisition of self-regulatory skills and knowledge. This chapter moves to the third phase: the institutionalization of responsibility in corporate self-regulation. Responsible companies do not simply layer a compliance System onto pre-existing management processes and corporate cultures. Rather, responsibility is internalized when the whole corporation is opened up to a broader deliberative democracy. This is not to say that business corporations should be democratic. Their management should, however, be permeable to democracy through three strategies:

• Strategy One: Responsible corporate self-regulators use employees' cultures, values and self-identities to build organizational integrity. This is a ‘bottom-up’ approach to self-regulation.

• Strategy Two: Responsible corporate self-regulators find it is Strategie to take legitimate stakeholder perspectives and external values into account, by reporting information about self-regulation processes and Performance to stakeholders, by Consulting with stakeholders, and by giving those affected by corporate power the ability to challenge corporate decisions and actions. This is an ‘opening-out’ approach to self-regulation in which stakeholder concerns and values have become an internal issue to be decisively addressed, not an externality to be ignored.

• Strategy Three: Responsible corporate self-regulators integrate into their routine management Systems institutions and decision-making processes that ensure that the Company becomes aware of, learns from and responds to social and legal responsibility issues.