Constructing a Web: Effects of Power and Social Responsiveness on Firm-Stakeholder Relationships

Business and Society 42 (1):43-82 (2003)
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Abstract

In this single industry study, the authors examine relationships between forest products companies in Maine and their stakeholders. The research question, why do firms work with stakeholders, is examined from both instrumental and normative perspectives. Specifically, it is hypothesized that stakeholder power and corporate social responsiveness affect the degree to which firms have working relationships with stakeholders. The study found support for the impact of the firm’s perception of stakeholder power on the strength of its relationships with stakeholders. Most notably, it also found support for the firm’s corporate social responsiveness on the strength of its stakeholder relations, indicating that firms do work with stakeholders from both instrumental and normative bases.

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