Stakeholder theory has gained currency in the business and society literature in recent years in light␣of its practicality from the perspective of managers and scholars. In accounting for the recent ascendancy of␣stakeholder theory, this article presents an overview of␣two traditional conceptualizations of corporate social␣responsibility (CSR) (Carroll: 1979, ‹A Three-Dimensional Conceptual Model of Corporate Performance', The Academy of Management Review 4(4), 497–505 and Wood: 1991, ‹Corporate Social Performance Revisited', The Academy of Management Review 16(4), 691–717), highlighting their predominant inclination (...) toward providing static taxonomic CSR descriptions. The article then makes the case for a stakeholder approach to CSR, reviewing its rationale and outlining how it has␣been integrated into recent empirical studies. In light of this review, the article adopts a stakeholder framework – the Ethical Performance Scorecard (EPS) proposed by Spiller (2000, ‹Ethical Business and Investment: A Model For Business and Society', Journal of Business Ethics 27, 149–160) – to examine the CSR approach of a sample of␣Lebanese and Syrian firms with an interest in CSR␣and␣test relevant hypotheses derived from the CSR/stakeholder literature. The findings are analyzed and implications drawn regarding the usefulness of a stakeholder approach to CSR. (shrink)

This article considers the stakeholder approach (SHA) to organisational management through the lens of what it means for humans to live sustainably on the Earth (that is, for there to be a sustainable world). In particular, the article considers if the SHA, as it is presented in mainstream academic and management literature, is supportive of corporate practices that advance the achievement of a sustainable world. The analysis shows the SHA to have significant failings in this regard when viewed (...) against key sustainable world criteria, with issues of concern evident from the normative core of the SHA through to is practical application in the management setting. (shrink)

In recent years, the stakeholder approach has been widely applied in the debate on corporate social responsibility (CSR). Although many authors of this approach have reviewed many elements of the model, they have unconditionally accepted several criteria assumed by Freeman ( 1984 ) to identify stakeholders. In general, stakeholder authors have assumed that (a) the company establishes dyadic relationships with other agents, and (b) decisions made by a company only have foreseen and direct effects on other (...) agents. These criteria have enabled researchers to understand simple processes. However, they have also prevented researchers from explaining how action comes about, and how responsibility is shared, in many complex processes taking place in contemporary societies. Such complex processes involve many agents, and each decision can generate unexpected effects which accumulate or disseminate. Furthermore, the normative structure governing these processes can affect and/or be affected by the actions of agents. In this study, we propose new criteria to expand the stakeholder model and facilitate the study of CSR in such processes. (shrink)

This article investigates the use of favors by managers of BRIC firms to accomplish business goals, the ethicality of which should be determined by the moral reasoning in these countries rather than from a developed country perspective. We define a favor as an exchange of outcomes between individuals, typically utilizing one's connections, that is based on a commonly understood cultural tradition, with reciprocity by the receiver typically not being immediate, and its value being less than what would constitute bribery within (...) that cultural context. This exchange normally takes place between and among members of networks, and may involve a network outsider contacted by a network insider on behalf of another insider. We see the giver and receiver of the favor, as well as network insiders and outsiders, as stakeholders. Additionally, society could also be considered to be a stakeholder since the practice of using favors generally inhibits the development of legitimate, strong formal institutions, since the use of favors in emerging economies is rooted in cultural traditions that we view as informal institutions. Furthermore, we assert that the practice of using favors can lead to bribery which harms society as a stakeholder both morally and economically. We posit that BRIC-country managers' behaviors stem from informal, culturally based practices—jeito in Brazil, blat/sviazi in Russia, jaan-pehchaan in India, and guanxi in China. We utilize institutional theory to explain why favors are relied upon, and ISCT to support the argument that the use of favors in environments like the BRICs is generally considered ethical. (shrink)

We have conducted a case study of Foxconn’s suicide crisis when 12 Foxconn employees committed suicide during the first 5 months of 2010. In this case study, we have examined Foxconn’s crisis communication strategies during the critical period and explored the failure in crisis communication in terms of the stakeholder approach. Our findings show that Foxconn adopted a mixed response strategy by trying to address the concerns of various stakeholders while refusing to take responsibility for the suicides. Foxconn’s (...) failure in the crisis was due to its imbalanced stakeholder relations that failed to recognize employees as important stakeholders, resulting in the failure to provide the ethics of care and justice that was warranted. Our findings suggest that an ethical stakeholder approach can complement Benoit’s and Coombs’ crisis communication theories and strategies. (shrink)

This study tests the relationship between demographic and psychological variables, particularly positive psychology, and investor preferences. Of thedemographics variables, only gender was related to investor preferences, with women expressing a longer time horizon than men. However, the positive psychology variables of hope and novelty orientation were strongly related to risk tolerance, time horizon, and estate intentions.

The aim of this research is to propose a framework to remedy potential dignity violations to families with children with disabilities seeking tourism experiences. We build on a systematic literature review on the topic of tourism of families with children with disabilities to propose a conceptual framework of dignity protection for this segment. This framework analyzes the responsibilities of four stakeholders (service providers, government, other tourists, and families) classified into dignity thresholds, to reduce attitudinal, information, and infrastructure barriers faced by (...) children with disabilities and their families when traveling. This paper is one of the few studies that connects the concept of dignity to the family tourism literature (with a special focus on a type of family variation neglected in terms of adequate tourism experiences) through a stakeholder approach focusing on the collaboration among actors within the industry to advance the creation of suitable tourism experiences for families with children with disabilities. (shrink)

The most recent restatements of stakeholder theory formulate that approach in terms of the distribution of value: “A stakeholder approach to business is about creating as much value as possible for stakeholders, without resorting to tradeoffs” (Freeman et al. 2010: 28). This formulation marks a shift from earlier work, which included a procedural dimension—a requirement that stakeholders participate in organization decision making. The present paper pushes back against this shift: it argues that orienting the stakeholder (...) approach around the participation requirement provides for a different moral logic, one not available to (now) conventional stakeholder theorizing (without that requirement), and one that may be more compelling to many. This argument requires critical re-examination of the moral arguments offered in the most recent restatements of the stakeholder approach. (shrink)

This study examines the impact of bank corporate governance reforms in the wake of the financial crisis. These reforms correspond to criticism of shareholder-focused agency-based corporate governance practices and a renewed focus on the stakeholder impact of corporate governance lapses in the financial sector. This study differs from previous studies of corporate governance in the financial sector in using performance indicators that proxy the interests of customers and the community. Drawing on data from 134 countries over an eight-year period (...) from 2004 to 2011, we find that the post-crisis corporate governance reforms in the banking sector appear to be effective in promoting greater bank attention to non-shareholder stakeholders’ interests. This study provides a means to conceptualize measures of bank performance from a stakeholder perspective in order to test emerging ideas about governance effectiveness in the financial sector. (shrink)

The paper builds on the stakeholder salience framework and applies a social identity approach to explain family firm dynamics and how these could impact on family firm governance and ethics. In particular, we consider the family as the main stakeholder for family firms and we refer to the recent approaches to stakeholder theory based on ‘names-and-faces’ and on social identity to focus on family members at the individual and organizational level. Family businesses offer an opportunity to (...) study stakeholder salience in settings with multiple logics. Our paper acknowledges how the attributes of legitimacy, power and status, for family business members, can derive from three different institutional settings (family, business and local community) and how these attributes are assigned and gained by family members on the basis of the stakes they put (or could put) on the business. From the analysis of these dynamics specific ethical considerations emerge. (shrink)

Supply chains are an indispensable element of any global economy. At the same time such supply chains create a societal and environmental burden. Drastic actions are required to mitigate these effects. Supply chains should become responsible and sustainable (where responsibility and sustainability are understood in a broad sense) addressing economic, political, societal, legal, human rights, ethical and environmental concerns. This research shifts from the question of why companies should implement responsibility and sustainability into supply chains, to how they should do (...) so effectively. Illustrated by a case study of Sedex, a collaborative platform for buyers and suppliers, this paper proposes three solutions for responsible and sustainable supply chain management (SCM). Firstly, supply chains have to be supported by research and innovation (R&I). Secondly, supply chains should be based on multi-stakeholder efforts of industry, governmental and non-governmental organisations. Thirdly, the responsibility should lie not only with an individual company and its employees, but also with organisations of companies (supra-agency). As a result, responsible and sustainable supply chains require technological, political and ethical solutions involving the development of sound, multi-stakeholder business and governance models. These models should be based on the equal consideration of all three dimensions of sustainability (economic, environmental and social), the cooperation of the partners in the chain, strengthening long-term relationships and legitimate requirements of the stakeholders of a supply chain. (shrink)

This paper analyses the ethical considerations using the stakeholder theory on two specific domains of the newly implemented ‘Ayushman Bharat-Pradhan Mantri Jan Arogya Yojna ’ scheme by the Government of India. The paper recommends a solidarity-based approach over an entitlement based one that focuses on out-of-pocket expenses for the most vulnerable and a stewardship role from the private sector to ensure equity, accountability, and sustainability of PM-JAY scheme.

Since its inception, Stakeholder Management Capability (SMC) has constituted a powerful hermeneutic through which business organizations have understood and leveraged stakeholder relationships. On this model, achieving a high level of capability largely depends on managerial ability to effectively bargain with stakeholders and establish solidarity vis-à-vis the successful negotiation, implementation, and execution of "win–win" transactional exchanges. Against this account, it is rightly pointed out that a transactional explanation of stakeholder relationships, regarded by many as the bottom line for (...) stakeholder management, fails to provide managerial direction regarding how to resolve a variety of normative stakeholder claims that resist commoditization. In response to this issue, this paper has two overlapping goals. It seeks to elaborate a discourse theoretical approach to the problem by first drawing out Jurgen Habermas’ theory of communicative action and delineating the various types of rational discourse. Second, the paper attempts to present concrete implications for SMC relative to reshaping the contours of rational, process, and transactional analysis in light of central discourse theoretical conclusions. (shrink)

We present an empirical investigation on how multiple stakeholders can influence and contribute to a standard development process. Based on the analysis of comments submitted by stakeholders developing ISO 26000 standard for social responsibility, we found no significant differences between the ratio of accepted and non-accepted comments among various stakeholder groups; however, we conclude that industry is the most influential stakeholder due to the volume of the comments. We also present a set of processes that stakeholders follow to (...) influence and contribute to standards development, namely to (1) eliminate issues that are controversial and undesirable; (2) link and integrate the standard into a network of other documents and ISO standards; (3) seek consensus by highlighting areas for further dialogue or by addressing their exclusion from the standards development, (4) reinforce issues that are important; and (5) improve the content of the new standard. In conclusion, we provide a set of propositions about multi-stakeholder standards development and compare multi-stakeholder involvement in standards developed through a new committee established in existing standards setting organization [i.e., Committees within the International Organization for Standardization (ISO)] and through new standards setting organizations established for one specific task (i.e., Forest Stewardship Council). We envisage that our study will be a useful platform to monitor and evaluate future developments of ISO 26000 and other multi-stakeholder standards. (shrink)

Experimental therapies with embryonic stem cells and, more recently, human induced pluripotent stem cells are steadily gaining ground in clinical practice. The implementation of su...

This article discusses plant-closing decisions by multinational enterprises applying a stakeholder theory approach. In particular, we focus on the emergence of “intra-stakeholder alliances,” that is, alliances among the various stakeholder groups of a specific corporation. We analyze the emergence of stakeholder alliances in reaction to MNEs' decisions to terminate production locally and discuss their influence on the outcomes of such decisions. Our research is inspired by two exceptional case studies of two multinational breweries that announced (...) their decisions to close niche breweries in small towns in Italy and Belgium. In both cases, the initial decision was ultimately reversed through the actions of intra-stakeholder alliances. We combine insights from stakeholder theory and the social movement literature to analyze the action and influence of intra-stakeholder alliances in seven cases of plant-closing decisions. We conclude by formulating four general propositions that can provide guidance to MNE management in plant-closing decisions. Our findings extend managerial stakeholder theory, show how this approach can improve strategic management analysis, emphasize the importance of the relationships among stakeholders in the value-creation process, and shed light on the collective action and influence of intra-stakeholder alliances. (shrink)

This Open Access book builds on the experiences of one of the largest European projects in the domain of responsible Research and Innovation: NewHoRRIzon. It highlights the potential of and opportunity in responsible R&I to conduct innovation in a socially responsible way. Employing the methodology of Social Labs, the book analyses responsible R&I from an experience-based viewpoint and further explores the application of responsible R&I beyond scholarly and industrial interests. The contributors analyze the current European R&I landscape, provide reflection and (...) reconceptualization of its core concepts, and project future challenges in relation to responsible R&I. The book complements the readers' line of work by providing insights on how responsible R&I can be applied by the audience, for example, in their decision-making processes. (shrink)

Extending the dialogue on corporate social performance as descriptive stakeholder management, we examine differences in CSP activity between family and nonfamily firms. We argue that CSP activity can be explained by the firm’s identity orientation toward stakeholders. Specifically, individualistic, relational, or collectivistic identity orientations can describe a firm’s level of CSP activity toward certain stakeholders. Family firms, we suggest, adopt a more relational orientation toward their stakeholders than nonfamily firms, and thus engage in higher levels of CSP. Further, we (...) invoke collectivistic identity orientation to argue that the higher the level of family or founder involvement within a family firm, the greater the level of CSP toward specific stakeholders. Using social performance rating data from 1991 to 2005, we find that family and nonfamily firms demonstrate notable differences in terms of social initiatives and social concerns. We also find that the level of family and founder involvement is related to the type and frequency of a family firm’s social initiatives and social concerns. (shrink)

This paper proposes a state-of-the-art methodology for the analysis of stakeholders and their role and performance related to SMEs in the mining industry in the Chilean region of Coquimbo. The relationships between the actors are studied and prioritized according to their support network position. An individual index for each actor based on their influence on solving problems is provided. The social network analysis was used to know the influence of the actors in the sector through the centrality measures. Furthermore, a (...) methodology to measure stakeholders’ influence based on the multicriteria method analytic network process approach is proposed. Both methods are used to identify the main stakeholders, study their relationships, and identify the most influential actors involved in executing strategies to boost the sector performance. The results show that the network remains cohesive thanks to certain actors, while the links between private actors must be strengthened; likewise, some public actors should assume a more proactive role in dealing with the problems of the sector. (shrink)

At a time when some are questioning the relevancy of business education in general, others are now asking whether MBA programs should be blamed for society’s declining trust in business and the numerous corporate ethical failures of recent decades. Whether the full blame lies with business schools or not, MBA instructors are actively seeking more effective ways to help students adopt more practical and ethical managerial paradigms. Because trust theory is simple and robust and outlines the basic mental processes that (...) drive economic exchange while simultaneously prioritizing ethical behavior, in this article, we argue that it is distinctively suited to operationalize stakeholder theory in the classroom, providing MBA students with both a principled and a practical foundation or thematic platform for their MBA coursework and subsequent careers. We also discuss potential challenges and limitations and provide recommendations for future research. (shrink)

The European Corporate Sustainability Framework (ECSF) is, among other concepts, based on a phase-wise development approach as described by Clare Graves' Levels of Existence Theory. As much as corporate sustainability has a sequence of adequate interpretations, aligned with each development level, also the notion of business excellence can be defined at multiple levels, as this paper demonstrates. Furthermore, the authors analyze the current EFQM Excellence Model for particular biases towards various development levels and suggest a new and innovative two-step (...) approach to assessing organizational performance with respect to organizational excellence (OE) and corporate sustainability. According to the organization's ambition, the assessment is either limited to a shareholder approach, mainly focusing at optimal usage of resources, or it also includes an additional assessment format based on the stakeholder approach, with specific reference to the organization's performance on the financial, social and ecological bottom line. This paper demonstrates the need and feasibility of an EFQM-Based assessment tool with a combined focus on corporate sustainability and OE. (shrink)

Stakeholder literature tends to presume that effective stakeholder dialogue, occurring directly or indirectly, among a focal firm, local communities, governments, and nongovernmental organizations is desirable for successful firm–stakeholder relationships. Even if theoretically desirable, effective dialogue does not always occur. There are two key theory-informing lessons in Botnia’s Fray Bentos successful green field pulp mill investment and start-up in Western Uruguay. First, critics could not halt the project politically supported by Uruguay in an expanding multi-party international dispute. Second, (...) the Botnia corporate communications process did not succeed in building consensus relationships, and attention was not paid to discourse creating shared meanings among all stakeholders. Participatory relationships were few, and successful dialogue was at best limited to supporters. This article uses discursive analysis to examine how newspaper and press release texts and language used therein both shaped and reflected the dynamically changing nature of firm–stakeholder relations in the Fray Bentos dispute. Despite the focal firm’s professed good intentions to create participatory relationships with its stakeholders during the building project, various stakeholders opposed the project and Botnia was caught in the crossfire of heated debate between Uruguay and Argentina. Three different frames changing over time are identified: the investment frame, the conflict frame, and the political frame. The analysis shows that the relationships between the focal firm and stakeholders involved many meanings only partly shared, due in part to a lack of corporate appreciation for the role of language in managing firm–stakeholder relationships. (shrink)

Are we really in need of (new) ethical institutions that regulate and control the ethical quality of corporate behavior? The various scandals (Enron, WorldOnline, Ahold) prove that ethical institutions, as well as deontological codes, public social commitments, social annual reports directly linked to financial overviews, are not enough to prevent fraud, corruption or bribery. Does the existence of those institutions partly provoke and legitimize the unbridled and immense power of organizational and CEO-(non-ethical) behavior and window-dressing? Do we need more separate (...) ethical institutions? Is it possible to outsource the competence of an ethical corporate and personal moral responsibility to another, separate institution? Do people and corporations still feel the confrontation with moral dilemmas with the institutionalizing of a part of that responsibility to an anonymous body? And won't this ethical control lead to a further alienation of the micro level personal responsibility to the macro performance of the market and organizations? This article focuses on the counterpart of the institution: tomorrow's stakeholder. The stakeholder of tomorrow (the manager, the CEO, the consumer, the employee, the civil servant...) embodies the complexity of the multi-paradigmatic business ethics debate. Two aspects of tomorrow's stakeholders' presence will be discussed: their moral attitude and emancipative communication. (shrink)

In this paper, I present a systematic approach to stakeholder theory based on social capital: the stakeholder social capital approach. Social capital is a relatively novel concept in stakeholder theory, which in previous research was not properly defined or systematically developed. This paper aims to fill this gap by taking into account the specificities of the stakeholder theory, which implies an explicit consideration of values. Therefore, the stakeholder social capital concept is defined by (...) four dimensions (relational, cognitive, structural and evaluative) instead of three (relational, cognitive and structural). I present the stakeholder social capital approach according to Donaldson and Preston's distinction: the descriptive, instrumental and normative. The descriptive perspective implies mapping the stakeholder networks based on the four dimensions and implies a shift toward relationships rather than groups of stakeholders. The instrumental perspective based on the relational view focuses on the drivers of relational rents within the network (relational assets, knowledge routines, complementary resource endowments and effective governance) and the normative perspective aims to foster a relational view of society. (shrink)

Stakeholder theory has grown into one of the most frequent approaches to organizational sustainability. Stakeholder research has provided considerable insight on organization–nature relations, and advanced approaches that consider the intrinsic value of nonhuman nature. However, nonhuman nature is typically approached as an ambiguous, unified entity. Taking nonhumans adequately into account requires greater detail for both grounding the status of nonhumans and particularizing nonhuman entities as a set of potential organizational stakeholders with different characteristics, vulnerabilities, and needs. We utilize (...) the philosophical concept of ‘recognition’ to provide a normative underpinning for stakeholder theorizing on nonhuman nature in both universal and difference-sensitive terms. We discuss how the status model of recognition helps identify relevant nonhumans as organizational stakeholders, establish respect, and particularize nonhumans in their distinctiveness and in partner-like ways. The implications of the recognition approach for stakeholder research are explicated with an illustrative case that exemplifies the recognition and particularization of nonhuman nature. We contribute to stakeholder research on nonhuman nature by suggesting that recognition provides a conceptual tool for theorizing the stakeholder status and particularization of nonhuman nature. Thereby, this article reduces anthropocentric bias and increases the capacity of stakeholder theorizing to confront the challenges of the ecological crisis. (shrink)

This paper describes a set of ideal type organizations in a developmental sequence. As these descriptions are based on Spiral Dynamics (or Emerging Cyclical Levels of Existence Theory – ECLET), the types are labeled as Order, Success, Community and Synergy. Per type the author elaborated on the underlying value system and relating institutional structures, such as leadership role, governance and measurement format. As a summary, a Transition Matrix is presented which indicate the paradigm shifts per discipline/department, as manifested in the (...) subsequent ideal type organizations. As Order and Success generally describe the majority of corporations in Western Economies, the latter two types introduce new approaches to more innovative – and more sustainable/responsible – ways to doing business. Based on Community Values, the author introduces a new measurement format which is the foundation for a systemic and coherent set of management tools to be used in a stakeholder approach. These tools relate to the strategic, tactical and operational tasks of management and have been developed by researchers of the European Corporate Sustainability Framework (ECSF) consortium. The set includes two tools which are generic: the Strategic Sustainability Scan (Strategy) and the Sustainability Matrix, which is a self-assessment tool (tactics). Three operational tools are context and industry specific: These are the Community related Responsive Business Scorecard (RBS) and Benchmark Format for measuring and monitoring sustainability performance and a methodology – a Management Information System – to generate information on people, planet and profit in order to provide data for the set of key performance indicators. (shrink)

This case examines how IBERDROLA, Spain’s leading electricity supplier, shifted the company’s strategic focus to concentrate on sustainability and turned it into a source of competitive edge in a liberalized market. Largely pre-empting the industry obligations that came out of the Kyoto agreement, IBERDROLA decided to put sustainability at the heart of the company’s decision-making processes. IBERDROLA sold off its most polluting facilities and all non-core activities to concentrate on becoming the greenest player on the market. Its success was due (...) to its willingness to walk the talk, to get stakeholders on side, and to demonstrate its determination to be a corporate citizen. An important element of the strategy was to establish a working relationship with important NGOs and effect their involvement with IBERDROLA’s activities. An early and uneasy partnership with WWF/Adena over the production of green energy proved a sharp learning curve for both parties. Then in 2004 a relatively minor event triggered a chain of reactions that led to a revolution in the company’s policy of stakeholder integration. A small group of protected birds was killed when they flew into the blades at one of IBERDROLA’s wind power facilities. When previous similar crises had occurred, IBERDROLA had dealt with them through the time-honoured methods of dialogue and confrontation. This time, IBERDROLA decided to initiate a new approach. They invited SEO/BirdLife (the Spanish Ornithology Society), the oldest Spanish NGO dedicated to the environment, to undertake a study into the implications of similar installations on bird conservation and the environment. The intention is for this collaboration to lead to a strategic agreement between both parties. (shrink)

Business Ethics: A European Review, EarlyView.

Despite its increasing popularity across management disciplines, stakeholder theory holds an important shortcoming in terms of its guidance for understanding the heterogeneity of stakeholder interests, claims, and behavior toward firms. Specifically, scholars note the inadequacy of generic categories of stakeholders in providing a realistic portrait of the groups and individuals that interact with the firm, opening the theory to much criticism for a ‘simplistic’ and ‘meaningless’ stakeholder concept. In face of this challenge, recent research is pointing to (...) social identity as a mechanism to refine our understanding of stakeholders as names-and-faces, however we argue that despite the advancements offered by the social identity approach, it too presents limitations in its ability to guide managers in prioritizing stakeholder claims. Building on these nascent efforts to offer much needed nuance to a theory of stakeholder identification and prioritization, this paper draws from new advances in the management literature and offers status as an attribute that helps explain and predict how managers accord attention to their various constituents. We set forth five propositions connecting stakeholder status to the attention stakeholders receive from managers. We argue that status is a superior attribute of stakeholder identification and prioritization because it accounts for groups and individuals’ uniqueness within broad categories of stakeholders in a dynamic way, reconciles the dual nature of stakeholders as holding simultaneously a social and an economic identity in their claim toward the firm, and provides a plausible explanation of, and intuitive guidance to, how managers accord attention to their firm’s stakeholders. Implications and future directions for research complete this article. (shrink)

Background Improving the competencies of nurses requires improving educational methods through the use of novel methods in teaching and learning. We aim to explore the perceptions of stakeholders (including nursing education directors, faculty members and nursing students) of the requirements of implementing innovative educational approaches in nursing. -/- Methods In this qualitative descriptive study, 19 participants, including educational directors, faculty members, and undergraduate and graduate nursing students, were selected through the purposeful sampling method. Achieving the theoretical saturation in extracted categories (...) was considered as a criterion for determining the sample size and the completion of sampling. The data were collected from December 2019 to May 2020 in nursing schools of Tehran, Iran, through in-depth semi-structured individual face-to-face interviews and were then analyzed based on the Graneheim and Lundman method. -/- Results Using qualitative content analysis, eight sub-themes and three themes were extracted. The extracted themes were ‘novel educational policymaking’, ‘Innovative education-oriented platform’, and ‘managing barriers of innovative educational approaches’. -/- Conclusions Developing and implementing innovative educational approaches entail providing appropriate context, structure, and required facilities by the policymaking system and educational authorities. In addition, developing capacity and related competencies of faculty members and students as the major stakeholders in employing these approaches is crucial. (shrink)

Stakeholder theory is often unable to distinguish those individuals and groups that are stakeholders from those that are not. This problem of stakeholder identity has recently been addressed by linking stakeholder theory to a Rawlsian principle of fairness. To illustrate, the question of stakeholder status for the non-human environment is discussed. This essay criticizes a past attempt to ascribe stakeholder status to the non-human environment, which utilized a broad definition of the term "stakeholder." This (...) paper then demonstrates how, despite the denial of stakeholder status, the environment is nonetheless accounted for on a fairness-based approach through legitimate organizational stakeholders. In addition, since stakeholder theory has never claimed to be a comprehensive ethical scheme, it is argued that sound reasons might exist for managers to consider their organization's impact on the environment that are not stakeholder-related. (shrink)

Traditionally, books on business ethics focus on CSR, companies' relations with their stakeholders, and corporate citizenship. More recently, green credentials and sustainability have been added to that agenda. Unconventionally, this book argues that business ethics are basic to running business, not a separate subject. They are inherent to the governance and management of every organization, not an optional exercise in corporate citizenship. Business ethics concern behaviour in business and the behaviour of business. Decisions at every level in a company have (...) ethical implications - strategically in the board room, managerially throughout the organization, and operationally in all of its activities. The use, and sometimes the abuse, of corporate power, the process of corporate governance, raises ethical issues. Business involves risk-taking, whether decisions are at the strategic, managerial, or operational level. Exposure to ethical risk needs to be part of every organization's strategy formulation, policy making, and enterprise risk management. Designed to be read by both undergraduates and postgraduates, this book is a primer on ethics in business. It is also relevant to ethics courses that are now part of many legal, accountancy and other professional examinations. The book is not about moral philosophy, nor does it prescribe appropriate standards of behaviour or recommend economic, legal or political solutions. Rather it enables readers to recognize ethical issues in business, to respond appropriately, and to embed ethics in business processes. The book not only considers what business ethics are, and why they are important, but offers practical approaches on how to develop a successful corporate ethics culture. (shrink)

As 'disruption' is currently becoming the new buzzword in boardrooms, this book advocates that the most striking opportunity for business today is making itself relevant to its stakeholders. By presenting a new route via innovative business models, a transformational corporate approach to stakeholder-orientated value creation is advocated in the form of a new stakeholder management framework. This conceptual framework provides both a theoretical and practical management solution for re-inventing the organisation via an enlightened perspective of the purpose (...) of business in society. The new approach transforms the existing business model via an inclusive, collaborative, connected mechanism of stakeholder value creation into an innovative business model through which the corporation mobilises the investment, conversion, and sustainability of the resources it employs in ways which are designed to be optimally relevant to its stakeholders. The overall impact results in innovative business models serving as catalysts for creating stakeholder-orientated value in place of the traditional, more narrowly-focused shareholder profit-maximisation aim of conventional business models. (shrink)

Current research on corporate social responsibility (CSR) illustrates the growing sense of discord surrounding the ‘business of doing good’ (Dobers and Springett, Corp Soc Responsib Environ Manage 17(2):63–69, 2010). Central to these concerns is that CSR risks becoming an over-simplified and peripheral part of corporate strategy. Rather than transforming the dominant corporate discourse, it is argued that CSR and related concepts are limited to “emancipatory rhetoric…defined by narrow business interests and serve to curtail interests of external stakeholders.” (Banerjee, Crit Sociol (...) 34(1):52, 2008). The paper addresses gaps in the literature and challenges current thinking on corporate governance and CSR by offering a new conceptual framework that responds to the concerns of researchers and practitioners. The limited focus of existing analyses is extended by a holistic approach to corporate governance and social responsibility that integrates company, shareholder and wider stakeholder concerns. A defensive stance is avoided by delineating key stages of the governance process and aligning profit centred and social responsibility concerns to produce a business-based rationale for minimising risk and mainstreaming CSR. (shrink)

Public utility regulation is one example of how stakeholder theory has actually evolved in practice. Through trial and error, court cases, statutory law and economic realities, stakeholder theory has its origins almost a century before R Edward Freeman published his seminal workStrategic Management: A Stakeholder Approach. This wealth of historical data is largely overlooked by the stakeholder literature. We will show in this article how the specific history of public utility regulation provides at least one (...) answer to how stakeholder theory can be formulated, used, and applied. Thisprocessof determining and protecting stakeholder interests is significantly different from rationalist trends in stakeholder theory.1Rather than first trying to determine the requirements of stakeholder theory in conjunction with an ideal ethical theory, the account given here is of anevolutionary stakeholder theorywhere rules arise out of the ongoing search for cooperative solutions among all stakeholders. (shrink)

Stakeholder theory scholars have recently addressed two crucial calls: the first is for the integration of strategy and ethics, of stakeholder theory and strategic management, and the second call is for the development of a dynamic approach to stakeholder management. I have attempted to answer these calls by developing a theoretical framework that links together stakeholder management, stakeholder commitment to cooperate with the firm, key decision makers’ ethical commitment, and firm strategy. Starting from the (...) basic assumption that managers cannot meet all stakeholders’ demands immediately and in a tailored manner, I contend, first, that an ambidextrous approach to stakeholder management is conducive to stakeholders’ commitment to cooperate for the sustainable well-being of the firm and, second, that firm strategy and key decision makers’ ethical commitment moderate the relationship between an ambidextrous stakeholder management and stakeholder commitment to cooperate. Furthermore, drawing on this theoretical framework, I attempt to address the call for the integration of strategy and ethics by proposing a three-level conceptual model that distinguishes the objectives, the field, and the levers of integration. Finally, I outline a set of propositions that, taken together, represent a first attempt to develop a dynamic approach to stakeholder management. (shrink)

Abstract:This article elaborates a normative Stakeholder Management Theory (SHMT) from a critical theory perspective. The paper argues that the normative theory elaborated by critical theorists such as Habermas exhibits important advantages over its rivals and that these advantages provide the basis for a theoretically more adequate version of SHMT. In the first section of the paper an account is given of normative theory from a critical theory perspective and its advantages over rival traditions. A key characteristic of the critical (...) theory approach is expressed as a distinction between three different normative realms, viz., legitimacy, morality, and ethics. In the second section, the outlines of a theory of stakeholder management are provided. First, three basic tasks of a theoretically adequate treatment of the normative analysis of stakeholder management are identified. This is followed by a discussion of how a critical theory approach to SHMT is able to fulfill these three tasks. (shrink)

Abstract:This paper contends that rationality is more properly evaluated as a property of an organization’s relationships with its stakeholders than of the organization itself. We predicate our approach on the observation that stakeholders can hold goals quite distinct from those of owners and top managers, and these too can be rationally pursued. We build upon stakeholder theory and Weber’s classic distinction betweenwertrationalitatandzweckrationalitat, adding to them the “new institutionalist” concept of the organization field (1983, 1991). Stakeholders employ a variety (...) of direct and indirect mechanisms to rationalize relations with the firm. We discuss four: internal subunits, legislated stakeholder participation, legislated access to information, and direct stakeholder activism. These developments are blurring the distinction between the environment and the organization by importing the values and goals of external stakeholders into the internal organization. They are also precipitating a more structured set of relationships among the actors who comprise the field. To the extent that thezweckrationalitatvalues of managers and owners as well as thewertrationalitatconcerns of stakeholders are met, the firm is more rational. (shrink)

Public or stakeholder participation in environmental governance has been strongly advocated within the United Nations (UN) since the early 1990s. A relatively new mechanism for global climate finance that emphasises stakeholder engagement is the Green Climate Fund (GCF), a UN strategy for channelling funds from the Global North to the Global South. Drawing on previous critical approaches to multi-stakeholder involvement in global governance, this article explores stakeholder involvement within the GCF. The study combines ideas from institutional (...) logics and resource dependency to provide a better understanding of how stakeholder arrangements are shaped in climate organisations. Results show that the GCF stakeholder arrangement favours private sector stakeholders – stakeholders that take a technical and apolitical approach to climate finance – and disfavours smaller, less resourceful stakeholders as well as those who perform a politicised watchdog function. (shrink)

This article is a first attempt to line out the conditions under which executives might have a real self-interest in pursuing a broad stakeholder management (SM) orientation to enlarge their power. We suggest that managers have wider latitude of action under an SM approach, even when this is instrumental to financial performance. The causally ambiguity of the performance effects of idiosyncratic relationships with stakeholders not only makes SM strategy difficult for competitors to imitate but also increases managerial discretion. (...) When managers use this situation for their own benefit, they can undermine the purported goals of the SM approach. By analyzing some of the factors that might lead to such disfunctionalities, this article advances a theory of the potential dark side of SM. (shrink)

Stakeholder theory is widely recognized as a management theory, yet very little research has considered its implications for individual managerial decision-making. In the two studies reported here, we used stakeholder theory to examine managerial decisions about balancing stakeholder interests. Results of Study 1 suggest that indivisible resources and unequal levels of stakeholder saliency constrain managers’ efforts to balance stakeholder interests. Resource divisibility also influenced whether managers used a within-decision or an across-decision approach to balance (...) stakeholder interests. In Study 2 we examined instrumental and normative implications of these two approaches. We conclude by considering the contributions of this research. (shrink)

A robust stakeholder analysis requires extensive conceptual and empirical work. Yet it is often unclear how to effectively do so. This paper introduces a new method—the Stakeholder Tokens—for designers to elicit a more inclusive set of stakeholders and gain better understanding of stakeholder interrelationships and dynamics. Stakeholder Tokens present a playful hands-on design approach to support value sensitive design stakeholder analyses by employing a style of role play.

While stakeholder theory has traditionally considered organization’s interactions with stakeholders in terms of independent, dyadic relationships, recent scholarship has pointed to the fact that organizations exist within a complex network of intertwining relationships [e.g., Rowley, T. J.: 1997, The Academy of Management Review 22(4), 887–910]. However, further theoretical and empirical development of the interactions between stakeholders has been lacking. In this paper, we develop a framework for understanding and measuring the effects upon the organization of competing, complementary and cooperative (...) stakeholder interactions, which we refer to as stakeholder multiplicity. We draw upon three forms of fit (i.e. fit as matching, fit as moderation, and fit as gestalts; Venkatraman, N.: 1989) to develop a framework for understanding stakeholder multiplicity based upon the direction, strength, and synergies of the interacting claims. Additionally, we draw upon the theory of stakeholder identification and salience of Mitchell et al. (1997), which we argue provides a more relevant and significantly more illustrative explanation of the nature and effects of stakeholder interactions upon the organization than the network approach of Rowley (1997). Furthermore, we ground our framework through reference to three stakeholder groups (i.e. governments, customers, and employees) and the stakeholder issue of concern for the natural environment. We propose a hierarchy of the multiplicity strength of influence of these three stakeholder groups. Potential measurement and implications are discussed. (shrink)

This paper is the third in a series of four that is directed at understanding and assessing stakeholder theory for the purposes of business ethics. It addresses the suitability and viability of the theory, rejecting objections of a moral and efficiency sort based (respectively) on claims about property rights and the economic superiority of the alternative stockholder approach, but accepting that implementation problems require limiting both the number of groupings admitted to stakeholder status and the degree of (...) responsibility towards them. The conclusion looks forward to the construction of a suitably limited version of the stakeholder approach in a fourth paper drawing upon this one and the previous two. (shrink)