This paper explores stakeholder relations of sustainable banks as organizations that simultaneously pursue the community development and market profitability goals. The study features the Global Alliance for Banking on Values (GABV), an international group of 62 financial institutions and 16 strategic partners, which collectively hold $200 billion USD of assets under management. Using the organizational identity orientation framework (Brickson, 2005, 2007), it reveals that, contrary to widely held assumptions that community-focused organizations serve a broad common good purpose, sustainable (...) banks take a relational stance based on effectively prioritizing community issues aligned with their missions and establishing strong partnerships with selected counterparts. Sustainable banks approach their stakeholder relations through the relational identity orientation expressed in the practices of inclusion of affected communities, full incorporation of local needs, philanthropic inclusiveness, transparency and power balance among stakeholders, governmental commitments, and relational hiring and socializing. (shrink)

Abstract:Business ethicists are eager to connect the ethical treatment of stakeholders with financial rewards. However, little attention has been paid to the cultural and industry context that influences how stakeholders are regarded by the firm, and how innovative strategies for engaging stakeholders can help a firm outperform its competitors. By reconnecting stakeholder theory to its roots in the field of strategy, we provide a framework for understanding the dynamic interplay between stakeholder relationships, innovation, and competitive advantage. The result (...) is a set of testable propositions aimed at better characterizing when and how “ethics pays” (Paine 2003). (shrink)

In this paper we aim to show that based on an effective stakeholder management corporations are able to build and maintain three important licences tosuccessfully fulfil their fundamental value creation task, namely the licence to operate, the licence to compete and the licence to innovate. The corporation is regarded as an institution engaged in mobilizing resources for productive uses in order to create wealth with and for its stakeholders. Our concept of the three licences is based on the widely (...) discussed (e.g. Bracken, 2003; Buono, 2003; Caldwell, 2004; Jones, Wicks, & Freeman, 2002; Lamont, 2004; Walsh, 2005) “Stakeholder View” framework by Post, et al. (2002) which concerns the firm’s interactions with its stakeholders. Our concept of the three licences is supported by the results of our qualitative case research in the financial services and the telecommunications industry. (shrink)

The purpose of this paper is to develop a framework for analysing managers’ attitudes toward moral issues in stakeholder relations, and to operationalise the developed framework by defining statements to be used as empirical measures in survey research. The research question, how can moral issues in business be examined with the stakeholder approach, is answered by paying attention to both theoretical and empirical viewpoints. The paper reveals that by analysing a company’s stakeholder relations, we can (...) discover the important moral issues in business. To validate the framework developed and the empirical measures which result, the development process is described in detail. The argument is that making the development process visible is an important task in validating empirical measures in survey research. As a result of the research process, a total of 50 moral issues in eight stakeholder relations are identified, and operationalised with 58 itemised statements. The final conclusion is that the empirical measures developed in this paper are suitable for measuring moral issues in stakeholder relations, and that they can later be used in analysing real life managers’ perceptions of moral issues in stakeholder relations. (shrink)

This article studies argumentation for acceptability of corporate environmental actions in corporate environmental statements, with emphasis on stakeholder relations and environmental values. Stakeholder theory is commonly taken as the basis for corporate environmental management, and rhetoric typical of the stakeholder approach dominates the field. Although environmental issues are strongly charged with values, the dominant stakeholder approach does not stress the value dimension. The data of the study consists of environmental statements by Finnish forerunning business corporations (...) in the forefront of corporate environmental responsibility. The results of the study indicate that the statements argue for the acceptability of corporate environmental actions through three power-related rhetorical forms that are competing ways to produce acceptability in the data: dominance, subordination and equality, and joint action. Each rhetorical form describes a power-based relationship between stakeholders and the corporation and leans on a specific value type producing legitimacy for that rhetoric form. (shrink)

Practitioners and leading scholars emphasize the need of integrating the notion of stakeholder more systematically into strategy theory. In corporate reality, this process has been on its way for quite some time because companies realized that a one-sided orientation to short-term shareholder value is a too narrow conception for strategic management, especially since firms’ strategically relevant resources today are not purely of financial nature but most importantly knowledge oriented. This paper will evaluate some insights into good practices of strategic (...) stakeholder management in the financial services industry and the telecommunications industry of Switzerland in order to stimulate the ongoing learning process in strategic stakeholder management. The results do support appropriateness of stakeholder management in situations of turbulence and as useful extension of conventional approaches in strategic management. (shrink)

This article presents a study of corporate-stakeholder relationships using an empirical technique called Data Envelopment Analysis (DEA) to assess company "best practices" with respect to five primary stakeholders at an industry level of analysis. Five key stakeholder domains are considered: community relations, employee relations, environment, customer (product category), and stockholders (financial performance). These data reflect the relationships between companies and these five primary stakeholders; these relationships are considered to be important elements of corporate social performance. About (...) 15% of companies, on average, are found to be operating at the multidimensional "best practices frontier" that DEA establishes. Differences in treatment of stakeholders within industries and between industries are observed. (shrink)

Although stakeholder salience theory has received a great deal of scholarly attention in the business ethics and management literature, the theory has been criticized for overemphasizing rationality in managerial perceptions. We argue that it is important to better understand what socially constructed emotions signal in business relations, and we posit the role of envy as a discursive resource used to signal and construct the asymmetrical power relations between small business owner–managers and their stakeholders. Our study is based (...) on a qualitative study on discursive accounts elicited from 33 interviews with small business owner–managers in Finland. Our study makes two primary contributions. First, we suggest that socially and culturally constructed emotions have significance in stakeholder salience analyses. Second, we suggest that socially and culturally constructed emotions provide a fruitful context in which to understand the limitations of owner–managers’ personal and moral autonomy. (shrink)

Due to the population ageing, building an elderly livable community has become an urgent task of social welfare development. This Public-Private Partnership construction project faces a variety of pressures from its complex stakeholders. Based on the Qingdao elderly livable community construction project, this paper builds up interpretations about its relationship governance by conducting stakeholder analysis. The paper aims to explore the relationship governance mechanism of multiple connections between related stakeholders. On the basis of complex network theory, this paper establishes (...) a stakeholder relationship network model and describes different modes of different stakeholder relationship in the Qingdao construction project. The paper analyzes the optimal decision-making behavior and interaction of different stakeholders, constructs the objective functions of stakeholder relationship network, applies centrality measure and dominant-set clustering to analyze the optimal conditions of the whole network, and finally carries out simulation calculation. The results show that it is feasible and effective to apply network analysis method to the study of stakeholder relationship in Public-Private Partnership construction projects. (shrink)

Despite the appeal of the stakeholder concept, little work had been done with respect to the development of specific structures for the management of stakeholder relations. This paper draws upon the organizational justice literature to demonstrate how many of its concerns coincide with those of the stakeholder management literature. It shows that organizational justice can provide specific advice for the design of stakeholder relations, while stakeholder theory can broaden the scope of current inquiries (...) into organizational justice. (shrink)

The paper demonstrates how a typology of moral issues may be used to systematically analyze and discuss ethical problems in stakeholder relations. The suggested typology is based mostly on economic theory and represents a universal and comprehensive matrix of moral issues in business. We analyze its compatibility with other stakeholder management models and demonstrate how it may be applied as a tool for identifying relevant ethical issues in relations with any stakeholder, or to build instruments (...) for measuring corporate social performance. In the conclusion we discuss other ways of application and future directions of research. (shrink)

This article presents an integrative conceptual framework for linking corporate social performance, stakeholders, and quality of management, then tests this framework empirically. Results provide strong support for the hypothesis that perceived quality of management can be explained by the quality of performance with respect to specific primary stakeholders: owners, employees, customers, and (marginally) communities, but treatment of ecological environmental considera- tions is not a significant factor.

This paper develops a theoretical model to explicate stakeholder-related mechanisms that affect university adoption of sustainability in curricula. This work combines stakeholder and institutional theories so as to extend both. By examining change in the university context wherein there is confusion about sustainability adoption, this research adds to previous institutional theory focusing on strongly contested practices, primarily in the for-profit firm setting. Sustainability is a transformational challenge and may be adopted reactively or proactively. Also, stakeholder theory is (...) extended in a mixed profit and non-profit context. Propositions suggest how the extent of embeddedness affects an organizations’ selection of stakeholders, consequently affecting the type of adoption. This facilitates a greater understanding of why two competing definitions of stakeholders may operate. Moreover, extrinsic and intrinsic motivations are discussed as affecting adoption in different ways. A responsible leader organization is newly defined and intrinsic motivation is proposed as underlying its choice of the widest set of stakeholders leading to broad, proactive adoption. (shrink)

Sustainable development (SD) – that is, “Development that meets the needs of current generations without compromising the ability of future generations to meet their needs and aspirations” – can be pursued in many different ways. Stakeholder relations management (SRM) is one such way, through which corporations are confronted with economic, social, and environmental stakeholder claims. This paper lays the groundwork for an empirical analysis of the question of how far SD can be achieved through SRM. It describes (...) the so-called SD–SRM perspective as a distinctive research approach and shows how it relates to the wider body of stakeholder theory. Next, the concept of SD is operationalized for the microeconomic level with reference to important documents. Based on the ensuing SD framework, it is shown how SD and SRM relate to each other, and how the two concepts relate to other popular concepts such as Corporate Sustainability and Corporate Social Responsibility. The paper concludes that the significance of societal guiding models such as SD and of management approaches like CSR is strongly dependent on their footing in society. (shrink)

The purpose of the research is to determine the degree of influence of the participants of any system on the organization of operational and strategic projects, the specifics of organizing interaction with stakeholders in order to meet their own needs and the needs of stakeholders for security, and an increase in personal satisfaction. In the article, the authors focus on key groups of stakeholders and consider the issues of managing relations with media organizations, government bodies, business partners, the scientific (...) community, investors and the organization's personnel. Scientific novelty lies in the combination of previously incompatible managerial functions of leaders to achieve the best result. As a result, recommendations were developed for the direction of development of the activities of stakeholders in Russia. (shrink)

ABSTRACT The aim of this study is to determine how stakeholder engagement can be adapted for the conduct of COVID‐19‐related clinical trials in sub‐Saharan Africa. Nine essential stakeholder engagement practices were reviewed: formative research; stakeholder engagement plan; communications and issues management plan; protocol development; informed consent process; standard of prevention for vaccine research and standard of care for treatment research; policies on trial‐related physical, psychological, financial, and/or social harms; trial accrual, follow‐up, exit trial closure and results dissemination; (...) and post‐trial access to trial products or procedures. The norms, values, and practices of collectivist societies in Sub‐Saharan Africa and the low research literacy pose challenges to the conduct of clinical trials. Civil‐society organizations, members of community advisory boards and ethics committees, young persons, COVID‐19 survivors, researchers, government, and the private sector are assets for the implementation and translation of COVID‐19 related clinical trials. Adapting ethics guidelines to the socio‐cultural context of the region can facilitate achieving the aim of stakeholder engagement. (shrink)

Multi-stakeholder initiatives claim to make production of commodities more socially and environmentally sustainable by regulating their members and through systems of certification. These claims, however, are highly contested. In this article, I examine how actors use MSI regulation with regard to land conflicts with a focus on the Roundtable on Sustainable Palm Oil. MSIs are a resource that actors in land conflicts can use to generate evidence that gives them leverage in their negotiations. To do so, actors employ the (...) interrelations between two kinds of land conflict: localized land conflicts between local land users, and disputes between more distant actors over aggregated land-use related to the sustainability of palm oil production. To demonstrate this, I use the notion of assemblage in two case studies from Sumatra, Indonesia. Thinking in terms of assemblage allows the contradictory but interrelated practices that shape MSIs to be understood. In distinct locally embedded processes, actors enact MSIs in contexts of unequal power relations, from which MSI governance emerges. The way in which access to an MSI is distributed among contending actors shapes MSI enactments and thus its governance. The unequal distribution of access to the RSPO results in a governance that favors companies over communities. (shrink)

This paper reviews and analyses the implications of citizenship thinking for building ethical institutional arrangements for business. The paper looks at various stakeholder groups whose relation with the company changes quite significantly when one starts to conceptualize it in terms of citizenship. Rather than being simply stakeholders, we could see those groups either as citizens, or as other constituencies participating in the administration of citizenship for others, or in societal governance more broadly. This raises crucial questions about accountability and (...) democracy in stakeholder relations with the corporation. We sketch out the main currents informing and emerging from the citizenship perspective on firm-stakeholder relations; analyze specific stakeholder groups and their particular relevance in the context of a citizenship perspective; and conclude with a discussion of the broader implications in terms of building ethical institutions. (shrink)

Focusing on one of the most studied dimensions of Social Psychology, i.e., intergroup relations, this study analyzes its discursive accomplishment in a specific group-based intervention, i.e., the talk and work of an Italian group home, i.e., a small alternative care facility hosting a group of out-of-home children. Particularly, we focused on the fictionally called “Nuns’ Home,” a group home previously investigated for its ethnocentric bias, and its intergroup relations with “inside” and “outside” groups, such as schools, biological families, (...) and social services. By combining a qualitative and quantitative approach in analyzing one audio-recorded ethnographic interview with the whole team of professionals, we aimed at accounting for the multitude of internal and external stakeholders that participants refer to, analyzing the discursive accomplishment of ingroup and outgroup in talk-in-interaction and investigating ingroup bias and group qualification. To do so, we detected social categorization markers and qualifying devices that participants rely on when referring to groups. Results show that, among the numerous groups recognized, participants co-construct intergroup relations and ingroup bias implying negative assessment over external groups. Being different from traditional laboratory studies illustrating substantial contraposition between ingroup and outgroup, our qualitative analysis reveals the multitude of groups by which the ingroup is formed and their internal fragmentation. To conclude, we discussed the implications of qualitatively studying intergroup relations in group homes and indicated future lines of research. (shrink)

Two key elements define the modern-day version of a socially responsible corporation: (1) targeting business activities on value creation in three dimensions, and (2) maintaining relationships with stakeholders. In this article, we argue that a proper understanding of Corporate Social Responsibility (CSR) lies in the intrinsic link between these two elements. A relational approach to CSR is called for. Circles of stakeholders reflect the level of involvement of different stakeholders with a corporation and the dynamics of their relations. In (...) a globalising world, connecting corporations to outer-circle groups of stakeholders can be substantially rewarding. Partnerships with Non-Governmental Organisations (NGOs) present a useful strategy for governance for the benefit of all. (shrink)

Social media offers a platform for diffused stakeholders to interact with firms—alternatively praising, questioning, and chastising businesses for their CSR performance and seeking to engage in two-way dialogue. In 2014, 163,402 public messages were sent to Fortune 200 firms’ CSR-focused Twitter accounts, each of which was either shared, replied to, “liked,” or ignored by the targeted firm. This paper examines firm reactions to these messages, building a model of firm response to stakeholders that combines the notions of CSR communication and (...) stakeholder salience. Our findings show that firm response to a stakeholder on social media is positively and most significantly associated with what we refer to as the stakeholder’s connective power but negatively associated with the firm’s own connective power. To a lesser extent, firm response is positively associated with the stakeholder’s normative power but negatively associated with the firm’s own normative power. Firm response is also shown to be positively associated with stakeholder urgency in terms of both the originality of a stakeholder message and the expression of positive sentiment. (shrink)

Stakeholder theory has been an incredibly powerful tool for understanding and improving organisations, and their relationship with other actors in society. That these critical ideas are now accepted within mainstream business is due in no small part to the influence of stakeholder theory. However, improvements to stakeholder engagement through stakeholder theory have tended to help stakeholders who are already somewhat powerful within organisational settings, while those who are less powerful continue to be marginalised and routinely ignored. (...) In this paper, we argue that one possible obstacle preventing less powerful stakeholders from speaking up and/or being heard by organisations is found at the ontological level, where we have identified an ‘essentialist self’ underpinning the stakeholder concept. By deconstructing the stakeholder concept through how it is defined, discussed and debated, and linking this back to the practical consequences of the theory for the least powerful stakeholders, we are able to make three contributions. One, through our deconstruction, it is clear that at an ontological level, stakeholder theory is underpinned by an implicit, and problematic, assumption of the ‘essentialist self’, where the organisation is treated as the ‘natural, universal self’, and anyone not closely resembling this narrow (and unrealistic) view of self is treated as ‘other’. Two, we build on the work of authors such as Wicks et al. (Bus Ethics Q 4(4):475–497, 1994), who highlight the need for consideration of the self within stakeholder theory. We thus take our findings from contribution one and begin to build a more holistic view of the self within the stakeholder concept, where each self is encouraged to recognise common selves outside and inside the corporation. Third, we link the theoretical discussion to the practical by discussing some imperfect ways in which a more holistic, enriched stakeholder concept might begin to help mitigate marginalisation for some stakeholders. (shrink)

Stakeholder theory contends that organizations owe an obligation to other stakeholder groups that extends beyond shareholders. This study uses stakeholder theory to examine which groups public relations practitioners and journalists attend to as well as which attributes—legitimacy, power, and urgency—they highlight. Content analysis of press releases and news stories found that the stakeholder most frequently mentioned in both press releases and newspapers was the shareholder group. Both press releases and news stories focused more on legitimacy (...) than power or urgency for all stakeholders except government. The findings support criticisms that, in general, business news and corporate communications concentrate on the interests of shareholders. The ethical implications from the perspective of stakeholder theory are discussed. (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)

We understand responsible leadership as a social-relational and ethical phenomenon, which occurs in social processes of interaction. While the prevailing leadership literature has for the most part focussed on the relationship between leaders and followers in the organization and defined followers as subordinates, we show in this article that leadership takes place in interaction with a multitude of followers as stakeholders inside and outside the corporation. Using an ethical lens, we discuss leadership responsibilities in a stakeholder society, thereby following (...) Bass and Steidelmeier’s suggestion to discuss “leadership in the context of contemporary stakeholder theory” (1999: 200). Moreover, from a relational and stakeholder perspective we approach the questions: What is responsible leadership? What makes a responsible leader? What qualities are needed? Finally, we propose a so-called “roles model” of responsible leadership, which gives a gestalt to a responsible leader and describes the different roles he or she takes in leading stakeholders and business in society. (shrink)

Over the past four decades, stakeholder research has united a chorus of voices from different disciplines using different terminology for different audiences all related to a seemingly similar topic: those that affect and are affected by business. By juxtaposing a comprehensive review of the early years of stakeholder research against more recent stakeholder research, we identify areas of common convergence as well as emergent scholarship. We develop an organizing framework consisting of three stakeholder-related themes: who or (...) what is a stakeholder; mechanisms underlying stakeholder relationships; and outcomes-oriented stakeholder research. Future research opportunities include: simultaneously examining multiple stakeholders at multiple levels; multiplier effects along the value chain and across geographies; and net impacts. We conclude by identifying how stakeholder research can “move the needle” on important business issues such as: income inequality and CEO pay; human rights and building community inclusion; disease alleviation; and food security in firms’ continuous quest to create value. (shrink)

Media guidelines on safe suicide-related reporting are within the suicide prevention armamentarium. However, implementation issues beleaguer real-world practice. This study evaluated the perspectives of the Malaysian media community, persons with lived experience of suicidal behavior, and mental health professionals on suicide-related reporting in terms of the impact, strategies, challenges, and the implementation of guidelines on safe reporting. Three focus group discussions of purposively sampled Malaysian media practitioners, PLE, and MHP were audio-recorded, transcribed, coded and thematically analyzed. Inclusion criteria were: English (...) fluency, no clinical depression or suicidal ideation, no recent previous suicide attempts or suicide bereavement. Three major themes emerged: Unsafe Reporting; Impact; and Safe Reporting. Most described current reporting as unsafe by being potentially triggering to media users and may contribute to contagion effect. Positive impacts identified included raised awareness toward suicide and its prevention. Unsafe reporting was attributed to inadequate awareness, knowledge, and guidance, lack of empathy and accountability, job-related factors, popularity-seeking, lack of monitoring and governance, and information source with unsafe content. Majority agreed on how suicide stories should be framed to produce a safe report. The media community diverged on how detailed a suicide story should be. Safe reporting challenges included difficulties in balancing beneficial versus harmful details, social media ubiquity and its citizen reporters. Participants suggested these safe reporting strategies: stakeholder engagement, educational approaches, improving governance and surveillance, and guidelines revision. Most acknowledged the relevance of guidelines but were unaware of the existence of local guidelines. Implementation challenges included the dilemma in balancing media industry needs vis-à-vis safe reporting requirements, stakeholder engagement difficulties and social media regulation. There is poor awareness regarding safe suicide-related reporting across all groups. PLE and MHP were negatively impacted by current unsafe messaging which aggravated trauma and grief reactions. Postvention support gaps for mental health professionals were highlighted. Safe reporting promotion strategies should include stakeholder engagement to increase awareness on minimizing Werther and maximizing Papageno effects. Strategic re-examination and dissemination of local media guidelines to address new media issues, and effective surveillance mechanisms, are crucial in sustainable improvement of safe reporting practices. (shrink)

This study contributes to understanding stakeholder engagement strategies by examining competitive responses alongside sociopolitical implications after a major exogenous shock—the 1998 Master Settlement Agreement (MSA) between the “Big Four” U.S. tobacco firms and 46 state attorneys general. We compare the different stakeholder engagement strategies of the two remaining U.S. tobacco manufacturers, Philip Morris (PM) and R. J. Reynolds (RJR), between 1998 and 2017. Implications for stakeholder theory from a relatively rare natural experiment highlight the importance of simultaneously (...) managing multiple stakeholders, inclusive of domestic and international sociopolitical and value chain stakeholders over time, for sustained value creation. Although PM and RJR initially pursued heterogeneous strategies by re-configuring relationships with relevant stakeholders, each firm’s growth prospects for the first decade post-MSA were exacerbated by various stakeholders through withholding and selective engagement strategies. Implications for how multiple, simultaneous stakeholder relationships can serve as important resources for achieving or limiting sustained growth are discussed. (shrink)

Healthcare user fees present an important barrier for accessing services for the poorest (indigents) in Burkina Faso and selective removal of fees has been incorporated in national healthcare planning. However, establishing fair, effective and sustainable mechanisms for the removal of user fees presents important challenges. A participatory action-research project was conducted in Ouargaye, Burkina Faso, to test mechanisms for identifying those who are indigents, and funding and implementing user fee removal. In this paper, we explore stakeholder perceptions of ethical (...) considerations relating to participation and partnership arising in the action-research. (shrink)

Community and stakeholder support for marine and coastal ecosystem conservation policies is crucial. However, extant multinational studies on climate change-related factors that constrain stakeholders’ willingness to protect the ocean are limited. Therefore, the dataset from 709 marine stakeholders across 42 countries, part of the MaCoBioS project funded by the European Commission, was analyzed using the Bayesian Mindsponge Framework (BMF) method to fill the knowledge gap. The findings reveal that for individuals who think society is doing too much to address (...) climate change, new technologies can solve climate change. Responses to climate change can damage the country’s economy and might not be productive in supporting actions protecting the ocean. Based on the study results, we recommend policymakers raise awareness among individuals engaged in marine and coastal ecosystems about the crucial role of marine protection in combating climate change, taking into account the limitations of technology in solving climate change problems and the inadequacy of current efforts. The findings also provide insights for enhancing the effectiveness of awareness and knowledge-raising campaigns, conservation programs, and eco-surplus culture-building agenda. (shrink)

This study attempts to establish the importance of firm-level interactions with sociopolitical stakeholders in explaining firms prospects for survival. Institutional arguments are proposed to explain the effects of internal structures-both organizational and phenomenological-on firms sociopolitical relational strategies, whereas arguments grounded in the stakeholder view of the firm are advanced to explain effects of sociopolitical stakeholder relations on firm performance. Findings indicate that firms tended to adopt cooptative relationships with sociopolitical stakeholders. Furthermore, firms cooperativeness toward sociopolitical stakeholders had (...) little effect on financial performance but, under some conditions, had positive effects on social performance. Implied is that markets may not be an effective governance mechanism to ensure firms alignment with democratic institutions in a plural society and that public policies may be needed to address these failures. (shrink)

The term "stakeholder engagement" has gained increasing prominence over the last few years. This prominence is fueled by a range of issues such as an increased dissatisfaction with business's focus on stockholder/shareholder interests and the demands for greater transparency from business following major business scandals. A perceived response to this issue in South Africa has been the inclusion of guidelines on stakeholder engagement in the King II Report on Corporate Governance. Despite this growing interest, there has not been (...) clarity on how companies engage with their stakeholders and specifically with how they identify and prioritize their stakeholders. The study sought to establish the reporting practices of South African business in relation to stakeholder identification and prioritization through a content analysis of their annual reports. The findings are discussed and recommendations on the two aspects of stakeholder engagement presented. (shrink)

Stakeholder theory has largely been anthropocentric in its focus on human actors and interests, failing to recognise the impact of nonhumans in business and organisations. This leads to an incomplete understanding of organisational contexts that include key relationships with nonhuman animals. In addition, the limited scholarly attention paid to nonhumans as stakeholders has mostly been conceptual to date. Therefore, we develop a stakeholder theory with animals illustrated through two ethnographic case studies: an animal shelter and Nordic husky businesses. (...) We focus our feminist reading of Driscoll and Starik’s (J Bus Ethics 49:55–73, 2004) stakeholder attributes for nonhumans and extend this to include affective salience built on embodied affectivity and knowledge, memories, action and care. Findings reveal that nonhuman animals are important actors in practice, affecting organisational operations through human–animal care relationships. In addition to confirming animals are stakeholders, we further contribute to stakeholder theory by offering ways to better listen to nontraditional actors. (shrink)

To contribute to the continuing challenge of explaining how managers identify stakeholders and assess their salience, in this article, we chronicle the history, assess the impact, and evaluate the possibilities opened by Mitchell, Agle, and Wood (MAW-1997). We do so through two types of qualitative analysis, and also through utilizing a quantitative network analysis tool. The first qualitative analysis categorizes the major contributions of the most influential papers succeeding MAW-1997; the second identifies and compares the relevant issues with MAW-1997 at (...) the time of initial publication and today. We apply main path analysis, a quantitative tool, to map how this scholarly domain has evolved. These three analyses robustly depict the impact of MAW-1997 and the ensuing scholarly conversation, and they enable us to illustrate the current state and trajectory of stakeholder identification and salience scholarship. We close by discussing pressing topics related to the broader body of stakeholder theory literature. (shrink)

Renewable energy has gained much-deserved prominence on the world stage of sustainable development, yet despite the surging interest there is a notable lack of understanding regarding best practices in business – stakeholder relations. Using a constructivist grounded theory approach (Charmaz, 2005) and drawing from complexity theory and social scientific theories of identity, our empirical study shows that core values and identity are strongly implicated in the formation and negotiation of stakeholder attitudes for both individuals and social groups. (...) Specifically, we find that personal and social identity are core drivers of community attitude development in a complex adaptive system, and that conflicts between strongly held identities are galvanized along bifurcated “axes of tension” that are also strongly implicated in community attitude formation processes. (shrink)

Based on a theoretical exploration in a previous article, this paper empirically analyzes which issues of SD are taken into account by corporations and stakeholders in what way, and to what extent the concept of sustainable development (SD) can be achieved through stakeholder relations management (SRM) on the corporate level. An important basis for this empirical analysis is a referential framework, which specifies 14 issues of SD. In a first empirical step, the literature-based framework has been operationalized for (...) the business world by analyzing sustainability reports. In a second empirical step, the operationalized framework served as the basis for a survey of selected MNCs. The analyses of the sustainability reports and the survey show how MNCs deal with particular issues of SD and what role they perceive particular stakeholders play. A key conclusion of the article is that SRM indeed promotes SD, but that it is no alternative to predictable government regulation. (shrink)

Various corporate social activities were regressed on self-report measures of stakeholder-orientations from 220 CEOs from large Fortune 500 industrial and service firms. Overall, the relationship between who CEOs say is important and corporate activities toward those stakeholders is much weaker than anticipated. Of the expected relationships, only corporate philanthropy was positively related to CEO community orientation. The few other significant findings were less straightforward. Return on equity (ROE) of the company was related to the CEO's customer orientation rather than (...) the CEO's stockholder orientation, and liberal HRM programs were positively associated with a CEO's stockholder orientation rather than employee orientation. (shrink)

In this article, we underscore the importance of stakeholder relationships for research on stakeholder engagement. We do so by integrating a practice-based understanding with the relational view. Based on a revealing case study of a civic engagement process in a large German city, we develop a conceptual framework that explains how relational practices shape stakeholder engagement. We identify three relational practices (i.e., connecting, facilitating, and containing) and their associated outcomes (i.e., implication, solidarization, and distinction), as well as (...) effects on stakeholder heterogeneity. Our findings contribute to the relational view on stakeholder engagement by providing insights into practices that shape relationships between heterogeneous stakeholders, explaining how these relational practices influence stakeholder heterogeneity, and identifying unintended impacts of stakeholder engagement. (shrink)

The purpose of this article is to transcend the assumption that stakeholder engagement is necessarily a responsible practice. Stakeholder engagement is traditionally seen as corporate responsibility in action. Indeed, in some literatures there exists an assumption that the more an organisation engages with its stakeholders, the more it is responsible. This simple 'more is better' view of stakeholder engagement belies the true complexity of the relationship between engagement and corporate responsibility. Stakeholder engagement may be understood in (...) a variety of different ways and from a variety of different theoretical perspectives. Stakeholder engagement may or may not involve a moral dimension and, hence, is primarily a morally neutral practice. It is therefore argued that stakeholder engagement must be seen as separate from, but related to, corporate responsibility. A model that reflects the multifaceted relationship between the two constructs is proposed. This model not only allows the coincidence of stakeholder engagement with corporate responsibility, but also allows for the development of the notion of corporate irresponsibility. (shrink)

Management and business literature affirm the role played by stakeholders in corporate social responsibility practices as crucial, but what constitutes a true business–society partnership remains relatively unexplored. This paper aims to improve scholarly and management understanding beyond the usual managers’ perceptions on salience attributes, to include how stakeholders can acquire missing attributes to inform a meaningful partnership. In doing this, a model is proposed which conceptualises CSR practices and outcomes within the frameworks of stakeholder salience via empowerment, sustainable corporate (...) social performances and partnership quality. A holistic discussion leads to generation of propositions on stakeholder salience management, corporate social performance, corporate–community partnership systems and CSR practices, which have both academic and management implications. (shrink)

The coronavirus disease (COVID-19) crisis provoked an organizational ethics dilemma: how to develop ethical pandemic policy while upholding our organizational mission to deliver relationship- and patient-centered care. Tasked with producing a recommendation about whether healthcare workers and essential personnel should receive priority access to limited medical resources during the pandemic, the bioethics department and survey and interview methodologists at our institution implemented a deliberative approach that included the perspectives of healthcare professionals and patient stakeholders in the policy development process. Involving (...) the community more, not less, during a crisis required balancing the need to act quickly to garner stakeholder perspectives, uncertainty about the extent and duration of the pandemic, and disagreement among ethicists about the most ethically supportable way to allocate scarce resources. This article explains the process undertaken to garner stakeholder input as it relates to organizational ethics, recounts the stakeholder perspectives shared and how they informed the triage policy developed, and offers suggestions for how other organizations may integrate stakeholder involvement in ethical decision-making as well as directions for future research and public health work. (shrink)

In this article, we examine the link between board composition and an enterprise strategy outcome, stakeholder relations. Because a firm’s enterprise strategy is set at the highest level of the organization, we expect the presence of stakeholder directors (suppliers, customers, employees, and community representatives) to be positively associated with stakeholder performance.Results from an analysis of 3,268 board members representing 250 firms are discussed in the context of both corporate governance and stakeholder management literatures.

Today, sustainable relations with a broad range of key stakeholders are not only important from a normative business ethics perspective, but also from an entrepreneurial viewpoint to allow and support the long-term survival of a firm. We will argue that the traditional conception of a firm’s corporate social responsibility does not reflect this view and that a comprehensive and dynamic conception of a firm’s responsibilities is necessary to map the reality of business practice and to manage the challenges implied (...) by sustainability. We think that distributive justice, that is the way in which firms involve their stakeholders in their wealth creation and dissemination processes, provides a comprehensive understanding of corporate responsibilities. Concerning procedural justice, we will discuss how firms involve stakeholders in their strategic processes according to their contribution to wealth creation. In the course of the article, we will propose a framework along with three design principles that can be used for shaping dynamic and comprehensive corporate responsibilities, and which thereby allow a sustainable procedure for changing business and non-business environments. (shrink)

This study investigates the relations among Machiavellianism, the stakeholder orientation, and Italian managers' support for corporate social and environmental reporting (SER). These relationships have not previously been investigated among a sample of experienced managers but have important implications. As anticipated, Machiavellianism had a strong negative association with the support for SER. Machiavellianism was also negatively related to the stakeholder orientation, which in turn was positively correlated with the support for SER. Support for the stakeholder orientation partially (...) mediated the association between Machiavellianism and SER. The findings advance our understanding of the motivations for sustainability reporting by documenting that managers' fundamental personality traits and economic ideologies are closely associated and are important determinants of normative support for social and environmental disclosures. We further suggest that the results support the case for mandated compliance‐with‐standard sustainability reports coupled with a requirement that such reports be independently audited. (shrink)

This paper is a commentary on the discussion document by M. Joseph Sirgy which attempts to develop a marketing educator code of ethics. The authors center their discussion around the concepts of "Social responsibilities in relation to certain publics" and "Social responsibilities in relation to certain actions", as presented in the Sirgy paper, "Certain Publics" issues and "Certain Actions" issues are both examined in light of each of the stakeholder groups, as well as in terms of several ethical theories. (...) Finally, the proposed Academy of Marketing Science marketing educator code of ethics is compared to the ethics codes of other marketing organizations. (shrink)

The aim of this study is to analyse how secondary stakeholders influence managerial decision-making on Corporate Social Responsibility disclosure. Based on stakeholder salience theory, we empirically investigate whether differences in environmental disclosure among companies are systematically related to differences in the level of power, urgency and legitimacy of the environmental non-governmental organisations with which these companies are confronted. Using proprietary archival data for an international sample of 199 large companies, our results suggest that differences in environmental disclosures between companies (...) are mainly associated with differences between their environmental stakeholders’ legitimacy. The effects of power and urgency are of an indirect nature, as they are mediated by legitimacy. This study improves our understanding of CSR disclosure by demonstrating that, next to the well-documented effect of company characteristics, stakeholder characteristics are also important. Besides, it provides scarce empirical evidence that not only primary stakeholders, but also secondary stakeholders are influential with regards to management decision-making. And more specifically, it offers insight into why some stakeholder groups are better able to influence disclosure decisions than other. The results also have important practical implications for managers of both environmental NGOs and large companies. For managers of environmental NGOs the results provide evidence of the most successful tactics for having their environmental information demands satisfied by companies. For company management the results provide insights into the most important stakeholder characteristics, on the basis of which they may develop strategies for proactively disclosing environmental information. (shrink)