Consumers’ engagement in morally-questionable behaviors poses a serious threat to firms. To further the understanding of consumers’ behavior, this study explores the association and conflicts between their ethical and legal judgments. In addition, it examines the way consumers’ judgments depend on their mind-sets and the legal liability criterion of action. In two experiments, participants were asked to judge the ethicality and legality of consumers’ morally-questionable behaviors. Behavior activity and participants’ mind-sets were manipulated. The results show that consumers are more likely (...) to judge a behavior to be legal when they consider it ethical than when they consider it unethical. Nevertheless, conflicts between ethical and legal judgments are prevalent. Furthermore, ethical judgments, legal judgments, and the occurrence of conflicts between them depend on activity and on consumers’ mind-sets. Finally, consumers report uncertainty about the ethicality and legality of a wide range of morally-questionable behaviors. Thus, the results paint a picture of individuals who perceive the law to be often beyond their reach or in conflict with their ethical principles. They portray both ethical and legal judgments as dynamically-changing, subjective, and context-dependent. Theoretical contribution and business applications are discussed. (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)

In this conceptual paper, we draw on social identity theory as a means to bridge individuals’ memberships in social groups with value creation in stakeholder networks defined by a socio-economic issue. To address recent calls for microfoundations of stakeholder theory, we introduce a reconceptualization of stakeholders as social groups to examine how value is defined and interpreted in intergroup processes embedded in an issue-based stakeholder network. We establish a theoretical model of value creation that links individuals’ identification with stakeholder groups (...) to intergroup trust, co-operation, and value creation. Specifically, we argue that the salience of preexisting social identities causes harmful tensions in stakeholder relationships that negatively impact value creation. We then propose that the development of a more inclusive stakeholder identity overcomes these negative intergroup consequences in multistakeholder settings. We discuss the impact on value creation of four stakeholder identity representations based on the salience of specific and superordinate stakeholder groups. The paper concludes with implications of our theoretical model for both research and practice related to value creation in issue-based stakeholder networks. (shrink)

Shareholder activists increasingly pressure corporations on social policy issues; yet, extant research provides little understanding of who these activists are and how they choose their corporate targets. In this article, we adopt an activist-centered approach and rely on hybrid organizational identity theory to determine, in a two-phase analysis, how shareholder activists define their economic and social identities and whether these identities are associated with specific target characteristics and tactical strategies. Our findings form the premise of a typology of institutional shareholder (...) activists that is empirically derived and takes into account the wide range of hybrid organizational identities that shareholders exhibit. With a sample of 735 social policy shareholder proposals filed by 104 institutional shareholders in the 2009-2010 period, our study presents one of the first empirical tests examining the heterogeneity of identities within the broad stakeholder category of “social shareholder activists.” Our empirical evidence demonstrates that these shareholders’ mix of economic and social identities is systematically related to their targets’ characteristics and tactical strategies. The implications of our new typology for research on shareholder activism and the value of our findings for managers conclude this article. (shrink)

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)

To achieve effective stakeholder governance in the context of international social accountability certification requires constructing a network of agreement. In a case study of a small-to-medium-sized enterprise, we examine managers’ attempts at enrolling participants in the supply chain to investigate how they strive to engage these stakeholders. We adopt actor-network theory and sensemaking theory to develop a novel approach to understanding social accountability standards’ certification in stakeholder networks. We argue that the design and operation of any SA standard across a (...) network requires not only attempts at enrolling other participants in the supply chain but management contextualizing and problematizing the terms of their involvement. (shrink)

Scholars of stakeholder management have long grappled with the question of how to communicate with stakeholders to enhance cooperation and reduce conflict. We build on insights from the literature on stakeholder dialog to highlight the importance of four elements of firm–stakeholder dialog processes: timing, valence, richness, and topicality of firms’ responses to stakeholder engagements. We demonstrate a link between these elements of the firm–stakeholder dialog process and changes in stakeholder cooperation or conflict with the firm, as well as contingent tradeoffs (...) among them. Specifically, we show that the relative importance of these elements is contingent upon stakeholder type and status. Government actors prioritize richness and topicality over timeliness and valence. Economic actors, by contrast, prioritize timeliness and valence. Civil society stakeholders prioritize timeliness, valence, and topicality over richness. Low-status actors across sectors deprioritize topicality and richness while high-status actors demand attentiveness to all four elements. (shrink)

In the management and business ethics literatures, stakeholder engagement has been demonstrated to lead to more ethical management practices. However, there may be limits on the extent to which stakeholder engagement can, as currently conceptualized, resolve some of the more difficult ethical challenges faced by managers. In this paper we argue that stakeholder engagement, when seen as a way of reducing five types of knowledge problems—risk, ambiguity, complexity, equivocality, and a priori irreducible uncertainty—can aid managers in resolving such ethical challenges. (...) Using a practical illustration of the ethical challenges surrounding the development and application of genetic modification technologies, we demonstrate how stakeholder engagement enables managers to better address these knowledge problems, thereby to manage more ethically. In this way, we suggest that stakeholder engagement has an even more crucial role to play in business ethics research and practice. (shrink)

Stakeholder theory is widely accepted but elementary aspects remain indeterminate as the term ‘stakeholder’ is an essentially contested concept, being variously describable, internally complex and open in character. Such contestability is highly problematic for theory development and empirical testing. The extent of essential contestability, previously unknown, is demonstrated in this paper through a bounded systematic review of 593 different stakeholder theory definitions. As an essentially contested concept, the solution does not lie in a universal stakeholder definition, but in debating the (...) boundaries of stakeholder identification. To this end, this paper presents the first major attempt at sorting, filtering and ordering stakeholder theory and stakeholder definitions to produce a comprehensive, multi-dimensional classification of stakeholder theory. The constructs of the classification model juxtapose existing stakeholder theories and contributions from across the multi-contextual applications of stakeholder theory, thereby providing an invaluable overview of what we know about stakeholder theory in one model. The classification model is then tested with positive results. The paper concludes with a comprehensive discussion of the implications of classification stakeholder theory definitions, which has for future research. (shrink)

Managers in ethnic businesses are confronted with ethical dilemmas when taking action based on ethnic ties; and often as a result, they increase the already vulnerable positions of these businesses and their stakeholders. Many of these dilemmas concern the capital that is generated through variations in the use of ethnic stakeholder social ties. The purpose of this paper is to suggest a stakeholder-based model of social capital formation, mediated by various forms of ethnic ties, to explore the duality of ethnicity: (...) it can aid and hinder an ethnic business. Drawing upon the social capital/economic development, stakeholder salience, ethnic businesses literatures, and on social identity theory, we develop a cyclical model of relationships among ethnic business stakeholder attributes and social capital, as mediated by three-way Simmelian bonding and bridging ties, which then, in turn, affects the ethnic stakeholder attributes. We argue that the development of bridging yet strong ties through this cyclical process is relevant for the improvement of the positions of ethnic businesses in terms of both economic success and social responsibility. Specifically, we suggest that, given the duality of ethnicity in business, managers can prioritize stakeholder relationships based upon how these stakeholder ties affect social capital. (shrink)

Since its inception in 2006, the United Nations-backed Principles for Responsible Investment have grown to over 1300 signatories representing over $45 trillion. This growth is not slowing down. In this paper, we argue that there is a set of attributes which make the PRI salient as a stakeholder and its claim to sign the six PRI important to institutional investors. We use Mitchell et al.’s theoretical framework of stakeholder salience, as extended by Gifford. We use as evidence confidential data from (...) the annual survey of signatories carried out by the PRI in a 5-year period between 2007 and 2011. The findings highlight pragmatic and organizational legitimacy, normative and utilitarian power, and management values as the attributes that contribute most to the salience of the PRI as a stakeholder. (shrink)

This paper examines the relationship between university mission statements and sustainability practices by institutions of higher education. We examine mission statement constructs and the degree to which higher educational institutions meet specific sustainability criteria in line with the College Sustainability Report Card. Our sample consists of 347 universities from the Sustainable Endowment Institute's (2011) Green Report Card. Previous research suggests that mission statements are essential for superior organizational performance outcomes. We examine the relationship between university mission statement content and sustainability (...) practices. Findings indicate that the greater the number of specific terms used in the university mission statements, the higher the statistical likelihood that those universities had higher sustainability ratings. Findings also indicate that private institutions and nonreligious‐affiliated institutions are more likely to include sustainability constructs in their mission statements than colleges and universities with religious affiliation and public institutions. Several propositions to guide future research are discussed. (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)

Although corporate social responsibility practice increasingly addresses gender issues, and gender and CSR scholarship is expanding, feminist theory is rarely explicitly referenced or discussed in the CSR literature. We contend that this omission is a key limitation of the field. We argue that CSR theorization and research on gender can be improved through more explicit and systematic reference to feminist theories, and particularly those from feminist organization studies. Addressing this gap, we review developments in feminist organization theory, mapping their relevance (...) to CSR. With reference to six major theoretical perspectives in CSR scholarship, we note feminist research relating to each. Drawing upon FOS theory and CSR theory, we then develop an integrated theoretical framework for the analysis of gender issues in CSR. Our framework enables us to identify research strengths in the gender and CSR literature, as well as gaps therein, to open new conversations and to posit future research directions for this emerging area of scholarship. Our paper illustrates how a better grounding of CSR in feminist theory can contribute to CSR research more broadly. (shrink)

The goal of the present research was to examine the way in which organisational identity orientation and corporate social responsibility interact to produce affective attachment and related beneficial behaviours among organisational members. Using a questionnaire administered in Poland, it was shown that when CSR activity was viewed as authentic by employees, it led to affective attachment to the organisation's CSR stance, while an instrumental evaluation was correlated with a negative attachment to the CSR stance. The results suggest that CSR motives (...) were particularly important for organisations with relational and collectivistic identity orientations because of the focus of these organisations on mutual or collective good that could be demonstrated through CSR. The results contributed to social identity literature by establishing a clear relationship between the concepts of identity orientation and CSR and showing that only authentic CSR produces affective attachment and behaviours that benefit the organisation. (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)

This study examines the influence of auditor-CEO surname sharing on financial misstatement and further investigates whether the above effect depends on hometown relationship and the rarity of surnames, respectively. Using hand-collected data from China, the findings show that ACSS is significantly positively related to financial misstatement, suggesting that the auditor-CEO ancestry membership elicits the collusion and increases the likelihood of financial misstatement. Moreover, ACSS based upon hometown relationship leads to significantly higher likelihood of financial misstatement, compared with ACSS without hometown (...) relationship. Furthermore, the positive relation between ACSS and financial misstatement is more pronounced for rare surnames than for common surnames. The above findings are robust to sensitivity tests on the basis of different measures of ACSS and financial misstatement, and my conclusions are still valid after using the propensity score matching approach to address the endogeneity concerns. (shrink)

A growing body of business ethics research has shown that firms are beginning to embrace the lesbian, gay, bisexual, and transgender (LGBT) community with internal organizational policies and temporary activism activities. Despite these positive developments, little research has examined firms’ LGBT inclusion strategy at the product level and whether adding LGBT representation to products helps, hurts, or has no impact on corporate products’ market performance. Prior studies have examined LGBT-themed and LGBT-vague representations and identified limitations of both. The current research (...) presents an alternative LGBT-inclusive representation in which heterosexual and LGBT imagery are both presented, with the former receiving more exposure than the latter. A secondary analysis of 4216 movies and a controlled experiment reveal converging evidence: movies with LGBT-inclusive representation outperform those with no LGBT representation or with LGBT-themed representation. The superiority of LGBT-inclusive representation comes from its ability to appeal to consumer segments holding favorable and unfavorable LGBT attitudes. While cultural and entertainment products often play profound roles in changing society’s ethical standards and moral attitudes, they are rarely studied in the business ethics literature. Our findings fill this gap while answering a multimillion-dollar question for the entertainment industry. (shrink)

Responding to the Special Issue's call for “new thinking” on gender and governance in developing societies, we introduce our research on the social organization of development knowledge and its ethical implications. Our feminist‐based approach, institutional ethnography, analyses the ruling relations of development and the standpoints represented in knowledge about development and its governance. Our paper offers an alternative to what we see as “the institutional standpoint” prevailing, but taken for granted, in business and society scholarship addressing development. Instead of theorizing (...) development relationships between institutions and their “stakeholders,” we illustrate what can be learned about the social relations of development beginning from the experiences of local subjects. Our analysis of an environmental research and development project in Uzbekistan shows that being missed is knowledge about development subjects that could have revealed what is locally relevant and needed. Instead, we discover gender inequality being constituted, unknowingly, within this project's institutionally generated knowledge and the activities it authorizes. (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)

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)