ABSTRACT:Global multi-stakeholder initiatives are important instruments that have the potential to improve the social and environmental sustainability of global supply chains. However, they often fail to comprehensively address the needs and interests of various supply-chain participants. While voluntary in nature, MSIs have most often been implemented through coercive approaches, resulting in friction among their participants and in systemic problems with decoupling. Additionally, in those cases in which deliberation was constrained between and amongst participants, collaborative approaches have often failed to materialize. (...) Our framework focuses on two key aspects of these breakdowns: assumptions about the orientation of MSI participants, and the deliberation processes that participants use to engage with each other to create these initiatives and sustain them over time. Drawing from stakeholder and deliberation theories, we revisit the concept of MSIs and show how their deliberative capacity may be enhanced in order to encourage participants to collaborate voluntarily. (shrink)

Poor working conditions remain a serious problem in supplier facilities in developing countries. While previous research has explored this from the developed buyers’ side, we examine this phenomenon from the perspective of developing countries’ suppliers and subcontractors. Utilizing qualitative data from a major knitwear exporting cluster in India and a stakeholder management lens, we develop a framework that shows how the assumptions of conventional, buyer-driven voluntary governance break down in the dilution of buyer power and in the web of factors (...) rooted in suppliers’ traditions, beliefs, local demands and resource dependency. We reveal out how success in governing collaborative global supply chains often falls short within the subcontracting stage, where a stakeholder management mindset is elusive to most participants. We suggest that success in governing collaborative global supply chains is dependent on concepts of stakeholder utility and the presence of shared value that is often at odds with the realities of power, information asymmetry and compliance/reward systems inherent in the non-market coordination of global supply chains. Our findings offer important insights for delineating the concepts of value creation from CSR concepts and practices, and for modifying the basic assumptions of conventional supply chain governance. (shrink)

Is there a link between how a firm manages its internal and external stakeholders? More specifically, are firms that give employees stock ownership and more say in running the enterprise more likely to engage with external stakeholders? This study seeks to answer these questions by elaborating on mechanisms that link employees to external stakeholders, such as the community, suppliers, and the environment. It tests these relationships using a sample of 347 private, mostly small-to-medium size firms, which completed a stakeholder impact (...) assessment organized by the non-profit B Lab. The results support the hypotheses that both employee ownership and employee involvement are positively associated with external stakeholder engagement. Further, we found that certification plays a role, as employee ownership contributes to external stakeholder engagement only in certified B Corporations, and not in firms that merely completed the B Lab Impact assessment. Our findings have import for stakeholder engagement frameworks, as we show that there is interplay between internal employee stakeholders and external stakeholders that may be important to overall firm–stakeholder management. (shrink)

This article leverages insights from the body of Adam Smith’s work, including two lesser-known manuscripts—the Theory of Moral Sentiments and Lectures in Jurisprudence —to help answer the question as to how companies should morally prioritize corporate social responsibility (CSR) initiatives and stakeholder claims. Smith makes philosophical distinctions between justice and beneficence and perfect and imperfect rights, and we leverage those distinctions to speak to contemporary CSR and stakeholder management theories. We address the often-neglected question as to how far a company (...) should be expected to go in pursuit of CSR initiatives and we offer a fresh perspective as to the role of business in relation to stakeholders and to society as a whole. Smith’s moral insights help us to propose a practical framework of legitimacy in stakeholder claims that can help managers select appropriate and responsible CSR activities. (shrink)

This Special Issue commemorates the 60th anniversary of Business & Society with nine rigorous literature reviews that address important societal problems and provide opportunities for theory development in the business and society field; in this introduction we present an overview of the Special Issue. With the theme “Building on Its Past,” the nine articles address a host of contemporary issues, including climate change, wicked problems, business and human rights, human health, certifications standards, the governance of artificial intelligence, stakeholder engagement, stakeholder (...) theory, and corporate political activity. Together, these reviews offer a wealth of suggested themes, theories and approaches that can drive our research forward for the next decades in business and society research and practice. Using the lens of a miner-prospector continuum to categorize the diversity of articles within this special issue, a common theme emerges across the portfolio of reviews: they all call for a more systemic and integrative perspective toward studying the complex interactions that link business and society actors and issues. Building on these findings, we encourage future scholars to fill long-standing researched gaps through a more open systems approach, which supports both contextually sensitive and multi-level and multi-disciplinary approaches to address grand societal challenges. We conclude with specific suggestions as to how business and society scholars might use an open systems approach, including embracing methodologies to address complex causal pathways, theorizing with a view towards spanning external and internal elements of an organization, and reflecting on the temporal and spatial dynamics of complex systems. (shrink)

ABSTRACT:Re-establishing trust presents a complex challenge for a firm after it commits corporate misconduct. We introduce a new construct, moral salience, which we define as the extent to which the firm’s behavior is morally noticeable to the stakeholder. Moral salience is a function of both the moral intensity of the firm’s behavior and the relational intensity of the firm-stakeholder psychological contract. We apply this moral salience construct to firm misconduct to develop a model of trust repair that is based on (...) goodwill, and moderated by the firm’s stakeholder culture. (shrink)

Multinational corporations dominate the global business arena, but new expectations for MNC boards call to question how they might effectively manage global stakeholder relationships in this new era of accountability. Uniting political behavior theory, which describes a board’s international political orientation, and global operating governance systems outlining a set of board behaviors, we develop a typology of four types of boards. We then provide recommendations for the development of an integrative governance structure, taking into account the mechanisms, structure, endorsements, and (...) codes of conduct that MNCs can use to promote ethical behavior across MNC horizons. (shrink)

This study examines how heightened expectations of board responsibility and accountability affect the socio-cognitive decision-making of boards and their collective task performance. Using data from the directors of 60 boards who served before and after the enactment of Sarbanes–Oxley, this study provides insight into the potential negative impact that this tightened accountability environment can have on a board’s task performance. Examining several socio-cognitive elements of board decision-making, board authority is found to have a positive main effect on board task performance, (...) while relative CEO power and affective conflict have curvilinear relationships with board task performance. Cohesiveness also moderates the relationship between a board’s perceived uncertainty and affective conflict with board task performance. In sum, the model shows how a new era of director accountability can affect the social cognitions of board decision-making that underlie board task performance. (shrink)

This paper develops and tests a model of fingerpointing behaviors that board members experience because of regulatory reforms. We present the partial results of a large study of 138 board members on 54 publicly traded boards in the United States. We found that recent governance reforms that mandate increased accountability of board members are associated with less board cohesion and thatlower board cohesion is associated with fingerpointing behaviors. These findings suggest that the stages of institutionalization following regulatory shock falter when (...) negative group behaviors develop under scrutiny. (shrink)

This case study reviews a train crash that occurred in January 2005 when a Norfolk Southern freight train struck a parked train on the tracks near Graniteville, South Carolina. At issue is the safe transportation of hazardous materials, the assignment of responsibility, the stakeholder management of participants and the outcome to Avondale Mills, a local textile company that ended up closing its doors after the spill.

Individual studies have contributed to our knowledge of corporate philanthropy, but to date they remain fragmented. We proposed to extricate the conceptual and empirical work in corporate social responsibility from the conceptual and empirical work on corporate philanthropy, limiting our review to works that specifically refer to corporate philanthropy, as well as works that are labeled as corporate social responsibility but actually operationalize it as philanthropy. We will present an integrative model of corporate philanthropy research that draws on research from (...) a variety of perspectives and shows how the antecedents, processes, and outcomes of philanthropic process have been studied. We will recommend an agenda for future research that highlights research foci that are understudied, argues for greater theoretical and disciplinary diversity in the study of philanthropy, and points out new opportunities for better understanding the philanthropic process. (shrink)