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)

In public communication contexts, such as when a company announces the proposal for an important organizational change, argumentation typically involves multiple audiences, rather than a single and homogenous group, let alone an individual interlocutor. In such cases, an exhaustive and precise characterization of the audience structure is crucial both for the arguer, who needs to design an effective argumentative strategy, and for the external analyst, who aims at reconstructing such a strategic discourse. While the peculiar relevance of multiple audience is (...) often emphasized in the argumentation literature and in rhetorical studies, proposals for modelling multi-audience argumentative situations remain scarce and unsystematic. To address this gap, we propose an analytical framework which integrates three conceptual constructs: Rigotti and Rocci’s notion of communicative activity type, understood as the implementation of an interaction scheme into a piece of institutional reality, named interaction field; the stakeholder concept, originally developed in strategic management and public relations studies to refer to any actor who affects and/or is affected by the organizational actions and who, accordingly, carries an interest in them; the concept of participant role as it emerges from Goffman’s theory of conversation analysis and related linguistic and media studies. From this integration, we derive the notion of text stakeholder for referring to any organizational actor whose interest becomes an argumentative issue which the organizational text must account for in order to effectively achieve its communicative aim. The text stakeholder notion enables a more comprehensive reconstruction and characterization of multiple audience by eliciting the relevant participants staged in a text and identifying, for each of them, the interactional role they have, the peculiar interest they bear and the related argumentative issue they create. Considering as an illustrative case the defense document issued by a corporation against a hostile takeover attempt made by another corporation, we show how this framework can support the analysis of strategic maneuvering by better defining the audience demand and, so, better explaining how real arguers design and adapt their topical and presentational choices. (shrink)

In spite of a renewed interest in the relationship between spirituality and managerial thinking, the literature covering the link between Islam and management has been sparse – especially in the area of ethics. One potential reason may be the cultural diversity of nearly 1.3 billion Muslims globally. Yet, one common element binding Muslim individuals and countries is normative Islam. Using all four sources of this religion’s teachings, we outline the parameters of an Islamic model of normative business ethics. We explain (...) how this ethics model seeks to balance the needs of multiple stakeholders, and discuss its enforcement mechanisms. This Islamic approach to business ethics is centered around criteria that are in common with stakeholder theory such as justice and balance, and includes unique additional criteria such as trust and benevolence. (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)

This paper describes the moral judgments made by various stakeholders in determining whether an event, caused by an organizational employee, constitutes dishonesty. It models person-situation interaction effects of situations in organizational settings and persons making moral judgments to predict judgments of dishonesty. Using a prototype definition of dishonesty, the paper examines the effects of differences in four areas (the prototypicality of the act, the actor''s motivation, the potential consequences, and the person judging the event) on the moral judgment of whether (...) the event constitutes dishonesty. The implications for managers and researchers of the resulting contingent prototype model of dishonesty are discussed. (shrink)

This paper describes a structured approach to the selection of an analytic strategy for cross-case analysis and a method for data display. To this end, criteria will be developed addressing both, aspects of scientific rigor as well as the practicability of application and the application of the decision process will be demonstrated.

In this target article by Morain and Largent (2023), the authors focus on an investigator’s duty to patient-subjects specifically regarding incidental or collateral findings within the context of e...

BackgroundIn 2004, patient advocate groups were major players in helping pass and implement significant public policy and funding initiatives in stem cells and regenerative medicine. In the following years, advocates were also actively engaged in Washington DC, encouraging policy makers to broaden embryonic stem cell research funding, which was ultimately passed after President Barack Obama came into office. Many advocates did this because they were told stem cell research would lead to cures. After waiting more than 10 years, many of (...) these same patients are now approaching clinics around the world offering experimental stem cell-based interventions instead of waiting for scientists in the US to complete clinical trials. How did the same groups who were once the strongest supporters of stem cell research become stem cell tourists? And how can scientists, clinicians, and regulators work to bring stem cell patients back home to the US and into the clinical trial process?DiscussionIn this paper, we argue that the continued marketing and use of experimental stem cell-based interventions is problematic and unsustainable. Central problems include the lack of patient protection, US liability standards, regulation of clinical sites, and clinician licensing. These interventions have insufficient evidence of safety and efficacy; patients may be wasting money and time, and they may be forgoing other opportunities for an intervention that has not been shown to be safe and effective. Current practices do not contribute to scientific progress because the data from the procedures are unsuitable for follow-up research to measure outcomes. In addition, there is no assurance for patients that they are receiving the interventions promised or of what dosage they are receiving. Furthermore, there is inconsistent or non-existent follow-up care. Public policy should be developed to correct the current situation.ConclusionThe current landscape of stem cell tourism should prompt a re-evaluation of current approaches to study cell-based interventions with respect to the design, initiation, and conduct of US clinical trials. Stakeholders, including scientists, clinicians, regulators and patient advocates, need to work together to find a compromise to keep patients in the US and within the clinical trial process. Using HIV/AIDS and breast cancer advocate cases as examples, we identify key priorities and goals for this policy effort. (shrink)

Stakeholder theory calls for decision makers to balance stakeholder interests, but before this can happen, management must understand how other parties view its decisions. Effective stakeholder dialogues convened to reach this understanding require management to appreciate how others perceive the risks posed by their decision. Although understanding others’ risk perception is crucial for effective communications, we do not have a clear idea of how viewing a situation from multiple stakeholder perspectives affects risk perception. Based on a (...) technique derived from risk perception studies of health and environmental issues, an experiment with 224 business students examined how an individual’s risk perception can account for both managerial and customer perspectives. Factors described as customer participation, extent of the effect, and management input, together with the respondent’s self-assessed understanding of the decision process, help categorize overall risk perceptions and are shown to be associated with behaviors based on the decision’s riskiness. Discussion includes implications for designs of business communications, including their content and transparency, and for understanding the audience for these communications. (shrink)

This paper advances stakeholder salience theory from the viewpoint of small businesses. It is argued that the stakeholder salience process for small businesses is influenced by their local embeddedness, captured by the idea of social proximity, and characterised by multiple relationships that the owner-manager and stakeholders share beyond the business context. It is further stated that the ethics of care is a valuable ethical lens through which to understand social proximity in small businesses. The contribution of the study (...) conceptualises how the perceived social proximity between local stakeholders and small business owner-managers influences managerial considerations of the legitimacy, power and urgency of stakeholders and their claims. Specifically, the paradoxical nature of close relationships in the salience process is acknowledged and discussed. (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)

Background Psychiatric electroceutical interventions (PEIs) use electrical or magnetic stimulation to treat mental disorders and may raise different ethical concerns than other therapies such as medications or talk therapy. Yet little is known about stakeholders’ perceptions of, and ethical concerns related to, these interventions. We aimed to better understand the ethical concerns of a variety of stakeholder groups (patients with depression, caregivers of patients, members of the public, and psychiatrists) regarding four PEIs: electroconvulsive therapy (ECT), repetitive transcranial magnetic stimulation (...) (rTMS), deep brain stimulation (DBS), and adaptive brain implants (ABI).Methods We conducted a national survey of these four stakeholder groups, using an embedded video vignette experiment depicting a patient with treatment-resistant depression and her psychiatrist discussing the possibility of treatment with one of the four PEIs.Results Participants’ ethical concerns varied by stakeholder group, by PEI, and by the interaction of the two. The three non-clinician groups tended to have similar ethical concerns, but to differ from psychiatrists. Similar concerns were raised with regard to the two implantable technologies, DBS and ABI. Overall, there was relatively little concern about the involuntary use of PEIs, though some expressed concern about the adequacy of information provided during the consent process. There was also significant concern that patients may not receive helpful therapies.Conclusions To our knowledge, this is the first national survey that includes multiple stakeholder groups and multiple PEI modalities. A better understanding of the ethical concerns of stakeholders can help to shape clinical practice and health care policy regarding PEIs. (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)

How Small and Medium Enterprises (SMEs) engage with stakeholders on their sustainable practices remains an under-researched topic in extant business research. This occurs even though SMEs play a tremendous role across all economies, and they often engage stakeholders on sustainability issues to foster their competitive advantage. In this article, drawing on stakeholder and innovation ecosystem theories, we use empirical evidence from multiple case studies of made in Italy firms operating in the fashion, food, and furniture industries to explore the (...) proposed research model in the SME context. Our case studies analysis reveals the specific stakeholder engagement levels activated by SMEs to achieve Sustainable Development Goals (SDGs) for circular value co-creation. Furthermore, we find that the stakeholder engagement levels revolve chiefly around open dialog with local community and customers, involvement of employees, customers, and community, and cooperation with suppliers, Government, and Academy. Implications of the findings for researchers, managers, and policymakers are discussed. (shrink)

This article revisits and further develops Mitchell et al.’s (Acad Manag Rev 22(4):853–886, 1997 ) theory of stakeholder identification and salience. Stakeholder salience holds considerable unrealized potential for understanding how organizations may best manage multiple stakeholder relationships. While the salience framework has been cited numerous times, attempts to develop it further have been relatively limited. We begin by reviewing the key contributions of other researchers. We then identify and seek to resolve three residual weaknesses in Mitchell et (...) al.’s ( 1997 ) framework, thereby strengthening its foundations for further development. We argue, first, that urgency is not relevant for identifying stakeholders; second, that it is primarily the moral legitimacy of the stakeholder’s claim that applies to stakeholder salience; and last, that the salience of stakeholders will vary as the degrees of the attributes vary. These insights inform revised definitions of stakeholder salience and legitimacy, and necessitate a new theoretical underpinning for the role of legitimacy. Finally, we present an extensive agenda for future research with the objective of refueling research in stakeholder salience. (shrink)

I argue in this article that responsible leadership (Maak and Pless, 2006) contributes to building social capital and ultimately to both a sustainable business and the common good. I show, first, that responsible leadership in a global stakeholder society is a relational and inherently moral phenomenon that cannot be captured in traditional dyadic leader–follower relationships (e.g., to subordinates) or by simply focusing on questions of leadership effectiveness. Business leaders have to deal with moral complexity resulting from a multitude of (...) stakeholder claims and have to build enduring and mutually beneficial relationships with all relevant stakeholders. I contend, second, that in doing so leaders bundle the energy of␣different constituencies and enable social capital building. Social capital can be understood as actual or potential resources inherent to more or less institutionalized relationships of mutual recognition (Bourdieu 1980). By drawing on network analysis I suggest, third, that responsible leaders weave durable relational structures and ultimately networks of relationships which are rich in ties to otherwise unconnected individuals or groups. Against this background I argue, fourth, that responsible leadership may result in the creation of value networks (Lord and Brown, 2001) of multiple stakeholders, which enhance social capital and thereby contribute to both a sustainable business and the common good. (shrink)

Abstract: In this article, I offer a proposal to clarify what I believe is the proper relation between value maximization and stakeholder theory, which I call enlightened value maximization. Enlightened value maximization utilizes much of the structure of stakeholder theory but accepts maximization of the long-run value of the firm as the criterion for making the requisite tradeoffs among its stakeholders, and specifies long-term value maximization or value seeking as the firm’s objective. This proposal therefore solves the problems (...) that arise from the multiple objectives that accompany traditional stakeholder theory. I also discuss the Balanced Scorecard, which is the managerial equivalent of stakeholder theory, explaining how this theory is flawed because it presents managers with a scorecard that gives no score—that is, no single-valued measure of how they have performed. Thus managers evaluated with such a system (which can easily have two dozen measures and provides no information on the tradeoffs between them) have no way to make principled or purposeful decisions. The solution is to define a true (single dimensional) score for measuring performance for the organization or division (and it must be consistent with the organization’s strategy), and as long as their score is defined properly, (and for lower levels in the organization it will generally not be value) this will enhance their contribution to the firm. (shrink)

Despite the growing importance of stakeholder management, few studies have empirically examined the influence of stakeholder relationship capability on firm innovation, especially in emerging economies. This study investigates how SRC relates to firm innovation in the presence of governmental intervention and in combination with firm-level characteristics. Using a survey and multiple secondary datasets on the listed Chinese firms, our findings indicate that SRC is positively associated with firm innovation. Moreover, advanced legal development and high-tech status strengthen the positive (...) link between SRC and innovation, whereas state ownership and firm age weaken this relationship. These findings provide novel insights into how firms use stakeholder management to enhance innovation that is beneficial for economic growth. (shrink)

Randomized controlled trial trial designs exist on an explanatory-pragmatic spectrum, depending on the degree to which a study aims to address a question of efficacy or effectiveness. As conceptualized by Schwartz and Lellouch in 1967, an explanatory approach to trial design emphasizes hypothesis testing about the mechanisms of action of treatments under ideal conditions, whereas a pragmatic approach emphasizes testing effectiveness of two or more available treatments in real-world conditions. Interest in, and the number of, pragmatic trials has grown substantially (...) in recent years, with increased recognition by funders and stakeholders worldwide of the need for credible evidence to inform clinical decision-making. This increase has been accompanied by the onset of learning healthcare systems, as well as an increasing focus on patient-oriented research. However, pragmatic trials have ethical challenges that have not yet been identified or adequately characterized. The present study aims to explore the views of key stakeholders with respect to ethical issues raised by the design and conduct of pragmatic trials. It is embedded within a large, four-year project that seeks to develop guidance for the ethical design and conduct of pragmatic trials. As a first step, this study will address important gaps in the current empirical literature with respect to identifying a comprehensive range of ethical issues arising from the design and conduct of pragmatic trials. By opening up a broad range of topics for consideration within our parallel ethical analysis, we will extend the current debate, which has largely emphasized issues of consent, to the range of ethical considerations that may flow from specific design choices. Semi-structured interviews with key stakeholders, across multiple jurisdictions, identified based on their known experience and/or expertise with pragmatic trials. We expect that the study outputs will be of interest to a wide range of knowledge users including trialists, ethicists, research ethics committees, journal editors, regulators, healthcare policymakers, research funders and patient groups. All publications will adhere to the Tri-Agency Open Access Policy on Publications. (shrink)

Although it is now widely recognised by business leaders that their companies need to accept a broader responsibility than short-term profits, recent research suggests that as corporate social responsibility (CSR) and social reporting become more widespread, there is little empirical evidence of the range of stakeholders addressed through their CSR programmes and how such programmes are reported. Through a CSR framework which was developed in an exploratory study, we explore the nature of stakeholder relationships reported across leading FTSE companies (...) and the importance they attach to communicating both social and business outcomes. It is evident from the hypotheses tested that the bigger FTSE companies, particularly extraction companies and telecoms, are more adept at identifying and prioritising their stakeholders, and linking CSR programmes to business and social outcomes. However, we draw the general conclusion that building stronger stakeholder relationships through CSR programmes – other than with customers – is not currently a priority for most companies. We also conclude that a limited sophistication in managing multiple stakeholders may compromise the impact of CSR upon business and social results. Finally, the managerial implications and the contribution of our study are discussed before closing with an acknowledgement of the limitations of this work and suggestions for further research. (shrink)

Balancing the often conflicting objectives of promoting social equity, ecological integrity and economic growth creates complexity in strategic decision-makingbecause of the number and diversity of stakeholders impacted. Therefore, sustainability solutions transcend organizational boundaries and an effective understanding requires an integration of perspectives from a wide range of stakeholders. Integrating diverse stakeholder perspectives can influence organizational innovation at two levels: by altering organizational knowledge structure and by transforming managerial interpretations of sustainability issues from threats to be averted into opportunities to (...) be sought. Openness to external stakeholder influences may lead to continuous learning and innovation via insights of multiple thought worlds or interpretive schemas of communities who think differently. (shrink)

The world is not on track to achieve Agenda 2030—the approach chosen in 2015 by all UN member states to engage multiple stakeholders for the common goal of sustainable development. The creation of the 17 Sustainable Development Goals (SDGs) arguably offered a new take on sustainable development by adopting hybrid and principle-based governance approaches, where public, private, not for profit and knowledge-institutions were invited to engage around achieving common medium-term targets. Cross-sector partnerships and multi-stakeholder engagement for sustainability have consequently (...) taken shape. But the call for collaboration has also come with fundamental challenges to meaningful engagement strategies—when private enterprises try to establish elaborate multi-stakeholder configurations. How can the purpose of businesses be mitigated through multi-stakeholder principle-based partnerships to effectively serve the purpose of a common sustainability agenda? In selecting nine scholarly contributions, this special issue aims at advancing this discourse. To stimulate further progress in business studies, this introductory essay, furthermore, identifies three pathways for research on multi-stakeholder engagement processes in support of the Decade of Action along three coupling lines: multi-sector alignment (relational coupling), operational perception alignment (cognitive coupling) and goal and strategic alignment (material coupling). (shrink)

Stakeholder management is an important method for reducing business risk. Recent decades have seen the growth of a new type of stakeholder: social protest stakeholders, individuals engaging in protest action which is directed at other unrelated parties, often the government. However, the actions of social protest stakeholders may negatively affect companies located nearby. This stakeholder category has not received any formal attention in the literature, and this article addresses the knowledge gap by exploring the effects of community-driven (...) protest action in South Africa and the strategies that firms adopt to mitigate the negative consequences of such protests. A multiple case study analysis was used to describe this type of stakeholder group and the management of the consequences of social protest action. Eight manufacturing companies in the Gauteng province participated in the study, the companies varied in size and industry. Among the key findings are that companies need to be highly adaptable if they are to mitigate the impact of protest action. We make practical suggestions about how companies may manage these risks, including the recommendation that companies engage more directly with social protestors to manage risks. The study makes an important contribution to the literature by identifying an additional key category of stakeholder and proposing a risk management approach to avert or minimize loss and damage. (shrink)

Given the multiplicity of codes designed to regulate different stakeholders in terms of promoting good corporate governance, this paper examines areas of conflicts among the various codes and the associated implications for corporate governance practices and regulatory compliances by public-listed Nigerian firms. Using the conflict-signalling theory for developing the conceptual framework, this study examines the proliferation of codes in Nigeria, through a mixed method approach to provide an exploratory account of the implications of corporate governance regulatory multiplicity. Evidence (...) suggests the presence of conflict among the various codes which contributes to reduced compliance by firms and ineffective enforceability by regulatory agencies, which both impede good corporate governance in Nigeria. The findings advance conflict-signalling theory as an important framework for understanding the implications of the conflicts arising from the multiplicity of codes. (shrink)

To mitigate risk, should companies signal a broad range of environmental, social, and governance initiatives or instead focus on only a few ESG issues? Drawing on signaling theory, we propose that a broad array of ESG initiatives generates not only signal consistency but also accelerating signal costs. Our empirical results support the resultant hypothesis of a curvilinear relationship between ESG scope and equity risk. In addition, this U-shaped curve seems to become steeper when firms face multiple media-reported ESG controversies. Overall, (...) our study qualifies the conventional wisdom that firms can reduce equity risk by attending to a wide variety of stakeholders and highlights the moderating impact of the firm’s media environment. (shrink)

In this article, we use ideas from stakeholder capital maintenance theory to address tensions in allocating firm profits between stockholders and other stakeholders. We utilize a mediative thought experiment to conceptualize how multiple stakeholder interests might better be served, such that genuine firm profits (from new value creation) versus artificial firm profits (from non-wealth-producing transfers) may be identified and incentivized. We thereby examine how such accounting transfers can be envisioned as stakeholder capital to be maintained for the (...) benefit of both the firm and the economy. We present examples to illustrate the hypothetical model proposed and its implications. (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)

Integrated reporting, as a novel corporate reporting approach, focuses on how six forms of capital promote corporate value. This paper explores whether this kind of multiple capitals disclosure framework has an impact on the capital market. Using a sample of Chinese A-share firms from 2012 to 2016, we examine the relationship between MCD quality and firm value. The results indicate that a higher MCD quality leads to a greater firm value. Our results are robust to a variety of sensitivity tests. (...) Further evidence suggests that MCD quality could increase profitability by affecting the decision-making of non-financial stakeholders and enhance the value relevance of financial information by affecting the decision-making of investors. The paper helps understand how the IR approach affects the perception of investors on the value of a firm. The findings of the paper are of interest to academics, corporate management, investors, and governmental officials. (shrink)

As concepts of corporate social responsibility (CSR) continue to evolve, the predicament facing CSR managers when attempting to balance the differing interests of various stakeholders remains a persistent management challenge. A review of the extensive literature in this field reveals that the conceptualisation of corporate approaches to responsible stakeholder management remains underdeveloped. In particular, CSR practices within the specific context of the pharmaceutical industry, a sector which particularly dramatically depicts the stakeholder management dilemmas faced by business managers, has (...) been under-researched. To address this gap, this paper utilises qualitative, exploratory data, obtained via multiple research methods, to investigate the CSR practices of major pharmaceutical companies in the UK and Germany. The data are employed to critically re-examine and revise a previously published explanatory framework which identifies the management steps involved in CSR stakeholder engagement. The resulting revised explanatory framework is the main contribution of this paper. By abstracting those factors which influence CSR practice, it provides an analytical tool which is designed to be of practical use for business decision-makers when managing their stakeholder engagement activities. Given that the research addresses values and ideals and prescribes practical recommendations for practitioners, it is essentially applied and normative in nature. Ultimately, the framework proposes a set of steps for developing CSR strategies which could help CSR professionals to make a ‘mindset transition’ from a narrower ‘traditional’ approach to CSR to a more innovative way of thinking. (shrink)

This paper seeks to discover whether companies that adopt a stakeholder approach, and thereby demonstrate a wider remit of corporate responsibility, provide inferior returns to those that embrace the shareholder value approach. To classify approaches, mission statements were analysed, the final sample comprising 32 shareholder oriented companies and 48 stakeholder oriented companies. To assess performance both accounting–based and market–based measures were used. A number of moderating variables were taken into account: systematic (beta) risk, gearing (long–term debt to total (...) long–term finance), tax ratios, and firm size. ANOVA and Kruskall–Wallis tests revealed that mission orientation did not affect performance, whether in terms of stock returns or excess returns. Neither were accounting returns on equity different overall, although shareholder oriented companies experienced wider variations in this measure. A number of multiple regressions were also performed. However, the mission dummy was not found to be a significant variable. (shrink)

This paper seeks to discover whether companies that adopt a stakeholder approach, and thereby demonstrate a wider remit of corporate responsibility, provide inferior returns to those that embrace the shareholder value approach. To classify approaches, mission statements were analysed, the final sample comprising 32 shareholder oriented companies and 48 stakeholder oriented companies. To assess performance both accounting–based and market–based measures were used. A number of moderating variables were taken into account: systematic (beta) risk, gearing (long–term debt to total (...) long–term finance), tax ratios, and firm size. ANOVA and Kruskall–Wallis tests revealed that mission orientation did not affect performance, whether in terms of stock returns or excess returns. Neither were accounting returns on equity different overall, although shareholder oriented companies experienced wider variations in this measure. A number of multiple regressions were also performed. However, the mission dummy was not found to be a significant variable. (shrink)

ABSTRACTThe question of how to engage with stakeholders in situations of value conflict to create value that includes a plurality of conflicting stakeholder value perspectives represents one of the crucial current challenges of stakeholder engagement as well as of value creation stakeholder theory. To address this challenge, we conceptualize a discursive sharing process between affected stakeholders that is oriented toward discursive justification involving multiple procedural steps. This sharing process provides procedural guidance for firms and stakeholders to create (...) pluralistic stakeholder value through the discursive accommodation of diverging stakeholder value perspectives. The outcomes of such a discursive value-sharing process range from stakeholder value dissensus to low and increasing levels of stakeholder value congruence to stakeholder value consensus. Hence, this article contributes to the emerging literature on integrative stakeholder engagement by conceptualizing a procedural framework that is neither overly oriented towards dissensus nor consensus. (shrink)

The objective of this article is to create an understanding of how the UN sustainable development goals can be used to steer stakeholder engagement for transformative change, meeting global challenges, and navigate a new business-societal practice driven by a values-based business model. The article is a conceptual study with case studies of the role that the SDGs play in multi-stakeholder dialog via the kind of sustainable business-societal practice that takes corporate social responsibility to the next level, where it (...) is embedded in a values-based business model, creating a new meaning to effect real business-societal transformation. Multi-stakeholder dialog implies interactive and communicative engagement with the full range of stakeholders in order to create value for all, employing a societal perspective and using the value network as a basis for effective decision-making. We explain our methodological approach by presenting multi-stakeholder dialog in practice, in the form of multiple case studies. These empirical settings consisted of two values-driven privately owned companies with a strong reporting mechanism and a clear transformation agenda based on the SDG challenges: IKEA and Löfbergs. The empirical study provides the basis for our proposed model. This article makes an original contribution to the study of the use of SDGs in management and service research. It investigates steering and navigating processes in specific contexts in order to determine what should be subject to legal enforcement and what comprises moral and/or ethical value, particularly at the societal level. (shrink)

Much ink has been spilt over the last decade in discussion of the theories and practices of social enterprise — see especially Peattie and Morley2 for a comprehensive review of the field, including of other reviews. This brief paper is about a specific aspect of these theories and practices: the effort to establish social enterprises as distinctive from others in having at least a double bottom-line (or in some cases a triple bottom-line, or even some greater multiple of bottom-lines). The (...) effort to establish this distinction does not fit comfortably with Freeman’s ideas about stakeholders, as exemplified in his suggestion that ‘all of those groups and individuals that can affect, or are affected by, the accomplishment of the business enterprise’ should be taken into account by its managers.3 The main feature of the multiple bottom-line is, on the contrary, that only some interests, not all, should be taken into account in decision making. I do not claim that the multiple bottom-line is the sole distinctive characteristic of organisations defined (by themselves or other) as social enterprises, but it is the only characteristic that concerns me in relation to stakeholder theory in this paper. I also do not claim that stakeholder theory consists only of a view about who should be taken into account by managers, but this is the only element of stakeholder theory that concerns me, in this paper, in relation to social enterprises; and all other aspects of social enterprise theory and practice, and all other aspects of stakeholder theory, will have to wait until another day. (shrink)

Previous research in Explainable Artificial Intelligence (XAI) suggests that a main aim of explainability approaches is to satisfy specific interests, goals, expectations, needs, and demands regarding artificial systems (we call these “stakeholders' desiderata”) in a variety of contexts. However, the literature on XAI is vast, spreads out across multiple largely disconnected disciplines, and it often remains unclear how explainability approaches are supposed to achieve the goal of satisfying stakeholders' desiderata. This paper discusses the main classes of stakeholders calling for explainability (...) of artificial systems and reviews their desiderata. We provide a model that explicitly spells out the main concepts and relations necessary to consider and investigate when evaluating, adjusting, choosing, and developing explainability approaches that aim to satisfy stakeholders' desiderata. This model can serve researchers from the variety of different disciplines involved in XAI as a common ground. It emphasizes where there is interdisciplinary potential in the evaluation and the development of explainability approaches. (shrink)

Stakeholder theory provides a framework for investigating the relationship between corporate social performance (CSP) and corporate financial performance. This relationship is investigated by examining how change in CSP is related to change in financial accounting measures. The findings provide some support for a tenet in stakeholder theory which asserts that the dominant stakeholder group, shareholders, financially benefit when management meets the demands of multiple stakeholders. Specifically, change in CSP was positively associated with growth in sales for the (...) current and subsequent year. This indicates that there are short-term benefits from improving CSP. Return on sales was significantly positively related to change in CSP for the third financial period, indicating that long-term financial benefits may exist when CSP is improved. (shrink)

BackgroundCase consultation performed by clinical ethics committees (CECs) is a complex activity which should be evaluated. Several evaluation studies have reported stakeholder satisfaction in single institutions. The present study was conducted nationwide and compares clinicians’ evaluations on a range of aspects with the CEC’s own evaluation.MethodsProspective questionnaire study involving case consultations at 19 Norwegian CECs for 1 year, where consultations were evaluated by CECs and clinicians who had participated.ResultsEvaluations of 64 case consultations were received. Cases were complex with multiple (...) ethical problems intertwined. Clinicians rated the average CEC consult highly, being both satisfied with the process and perceiving it to be useful across a number of aspects. CEC evaluations corresponded well with those of clinicians in a large majority of cases. Having next of kin/patients present was experienced as predominantly positive, though practised by only half of the CECs. The educational function of the consult was evaluated more positively when the CEC used a systematic deliberation method.ConclusionsCEC case consultation was found to be a useful service. The study is also a favourable evaluation of the Norwegian CEC system, implying that it is feasible to implement well-functioning CECs on a large scale. There are good reasons to involve the stakeholders in the consultations as a main rule. (shrink)

The prevalence and complexity of local sustainable development challenges require coordinated action from multiple actors in the business, public, and civil society sectors. Large multi-stakeholder partnerships that build capacity by developing and leveraging the diverse perspectives and resources of partner organizations are becoming an increasingly popular approach to addressing such challenges. Multi-stakeholder partnerships are designed to address and prioritize a social problem, so it can be challenging to define the value proposition to each specific partner. Using a resource-based (...) view, this study examines partner outcomes from the perspective of the strategic interest of the partner as distinct from the strategic goal of the partnership. Based on 47 interviews with representatives of partner organizations in four Canadian case studies of community sustainability plan implementation, this article details 10 resources partners can gain from engaging in a multi-stakeholder partnership. (shrink)

Corporate social responsibility is a complex discipline that not only demands responsible behavior in production processes but also includes the concepts of communicative transparency and dialogue. Stakeholder dialogue is therefore expected to be an integrated part of the CSR strategy :323–338, 2006). However, only few studies have addressed the practice of CSR stakeholder dialogue and the challenges related hereto. This article adopts a postmodern perspective on CSR stakeholder dialogue. Based on a comprehensive single case study on (...) class='Hi'>stakeholder dialogue in a global dairy company, we focus on the complexity of CSR dialogue with multiple stakeholders. Drawing on a critical reflexive methodology :1265–1281, 2007), we develop the research question: How is CSR multi-stakeholder dialogue practiced, experienced, and articulated in an empirical context? The purpose is to understand the underlying assumptions, expectations, and principles guiding CSR multi-stakeholder dialogue in an empirical setting, as we focus on how key stakeholders articulate and anticipate the values of stakeholder dialogue and how the actual stakeholder dialogues are enacted. The findings of the study differ significantly from the ideals of transparent and agenda-free stakeholder dialogue. Rather, the study shows an overall tension between ideal and practice, supporting the progressive importance of the dialogue process in itself as an essential part of the end goal. The implication of this is a growing pressure on creating transparency about the positioning and negotiation of roles throughout the dialogue process. (shrink)

The growing popularization of stakeholder theory among management scholars has offered a useful framework for understanding the multiple and interdependent roles of government and business in an increasingly challenging political and regulatory environment. Despite this trend, attention to the role and responsibility of government to protect citizen rights has been limited. To the two traditional stakeholder theory views of government where the focal organization remains the firm, we propose to add two views by pivoting the government’s place and (...) making it the focal organization. We thus describe governments as serving four roles in the business–government–society nexus. For each role, we analyze typical governmental activities/behaviors, relationships with firms’ stakeholders, as well as the challenges and limits to these roles. We also focus on the central notion of salience amplification, as a means of checks and balances across stakeholders in order to safeguard citizen rights and reveal the greater good. (shrink)

Visions of and narratives about the future energy system influence the actual creation of innovations and are thus accompanying the current energy transition. Particularly in times of change and uncertainty, visions gain crucial relevance: imagining possible futures impacts the current social reality by both creating certain spaces of action and shaping technical artifacts. However, different actors may express divergent visions of the future energy system and its implementation. Looking at a particular innovation site involving multiple stakeholders over an 8-year period, (...) we empirically analyze the collective negotiation process of vision making, its shifting over time, and how visions eventually unfold performativity. Adopting a process perspective, we identify four different phases and the respective functions of visions and visioneering related to the site’s development by exploring the question: Why do certain visions gain importance and eventually lead to substantial changes of the project in process? Qualitative data from documents and interviews analyzed with reference to science and technology studies show the interweaving conditions that influence the visioneering and the linkage to the actual development of material artifacts. Against the backdrop of innovation projects, this paper explores visioneering as an ongoing, transformative and collective process and reveals its moments of stabilization. (shrink)

This article investigates stakeholder expectations associated with corporate environmental disclosure. Several articles have studied the effect that stakeholder pressure has on environmental disclosing strategies. In this article, we extend previous research to an examination of the influence of external, internal, and intermediary stakeholder groups or constituencies in turn to clarify the demands of multiple stakeholders as to firms' disclosure of sufficient and adequate environmental information. The sample comprised Taiwanese firms listed on the Taiwan Stock Exchange. Our results (...) show that the level of environmental disclosure is significantly affected by stakeholder groups' demands. External stake-holder groups, such as the government, debtors, and consumers, exert a strong influence over management intentions regarding the extent of environmental disclosure. Internal stakeholder groups, such as shareholders and employees, impose additional pressures on firms to disclose environmental information. As for intermediate stakeholder groups, environmental protection organizations, and accounting firms, these can greatly influence managerial choices regarding their environmental disclosure strategies. (shrink)

The pervasiveness of AI-empowered technologies across multiple sectors has led to drastic changes concerning traditional social practices and how we relate to one another. Moreover, market-driven Big Tech corporations are now entering public domains, and concerns have been raised that they may even influence public agenda and research. Therefore, this chapter focuses on assessing and evaluating what kind of business model is desirable to incentivise the AI for Social Good (AI4SG) factors. In particular, the chapter explores the implications of this (...) discourse for SDG #17 (global partnership) and how this goal may encourage Big Tech corporations to strengthen multi-stakeholder partnerships that promote effective public-private and civil society partnerships and the meaningful co-presence of non-market and market values. In doing so, the chapter proposes an analysis of the sociological notion of "social license to operate" (SLO) elaborated in the mining and extractive industry literature and introduces it into the discourse on sustainable digital business models and responsible management of risks in the digital age. This serves to explore how such a social license can be adopted as a practice by digital business models to foster trust, collaboration and coordination among different actors - AI researchers and initiatives, institutions and civil society at large - for the support of SDGs interrelated targets and goals. (shrink)

This study examines the independent and combined influences of internal and external antecedents to upstream environmental practices. Proactive environmental strategy is considered as an internal antecedent and competitive pressure as an external antecedent. Multiple hierarchical regression analysis is used to test the hypothesized relationships using data from a sample of 149 manufacturing companies located within the U.K. food industry. The results suggest that proactive strategy and competitive pressure exert both independent and combined influences on environmental supply chain practices. Proactive strategy (...) appears to be a stronger driver of these practices, suggesting that internal stakeholders such as directors, managers, and employees may be more influential in the adoption of certain practices than external stakeholder pressures. This article builds upon the recent wave of research highlighting the potential for internal and external factors to generate a combined influence on the adoption of environmental practices within companies and their supply chains. (shrink)

Tackling grand challenges requires coordination and sustained effort among multiple organizations and stakeholders. Yet research on stakeholder theory has been conceptually constrained in capturing this complexity: existing accounts tend to focus either on dyadic level firm–stakeholder ties or on stakeholder networks within which the focal organization is embedded. We suggest that addressing grand challenges requires a more generative conceptualization of organizations and their constituents as stakeholder systems. Using the metaphor of ballet and insights from dance theory, (...) we highlight four defining dimensions of stakeholder systems (two structural and two dyadic); we proceed to offer a dynamic model of how those dimensions may interact and coevolve. Our metaphor and resulting theory of stakeholder systems are thereby well equipped to incorporate the complexity of tackling grand challenges, where many contemporary stakeholder arrangements are oriented around issues rather than firms. (shrink)

Although theoretical underpinnings of stakeholder dialog (SD) have been extensively discussed in the extant literature, there is a lack of empirical studies presenting evidence on the SD initiatives undertaken by firms. In this article, we provide information about 294 SD initiatives collected through a content analysis of the sustainability reports published by large firms in Germany, Italy, and the U. S. In addition to a country-based description of the different forms, stakeholder categories, and topics of the SD initiatives, (...) we explore the relationship between SD and characteristics of national business systems. Overall, we find firms undertake few SD initiatives, using low-involvement forms of dialog, and focusing on one category of stakeholders per initiative. Results suggest that the explicit approach to corporate social responsibility (CSR) favors the quantity of SD initiatives, but neglects the importance of the level of involvement and diversity of stakeholders participating at the dialog. Finally, we find public policies on CSR have a substantial influence on SD in national business systems with an implicit approach to CSR. Public policies based on a shared discussion involving multiple social actors encourage SD initiatives that use different forms of dialog and are characterized by high level of involvement. Our findings offer contributions to the ongoing debate about the effectiveness of SD and its relationship with CSR. (shrink)

Irrigation systems are recognized as common pool resources supplying water for agricultural production, but their role in supplying water for other uses is often overlooked. The importance of non-agricultural uses of irrigation water in livelihood strategies has implications for irrigation management and water rights, especially as increasing scarcity challenges existing water allocation mechanisms. This paper examines the multiple uses of water in the Kirindi Oya irrigation system in Sri Lanka, who the users are, and implications for water rights and management (...) policies. There are important residential, gender, and class differences among the water users. People use irrigation system water not only for field crops, but also for fishing, homestead gardens, and livestock. Even within irrigated farming households, men have more control over paddy crops in the main fields, whereas homestead gardens are women's domain. Because the irrigation system provides water for birds and animals, even wildlife and non-resident environmental groups can be considered stakeholders. Current policies emphasize user involvement in both irrigation and domestic water supply. While government agencies have had primary responsibility, institutions such as Farmers' Organizations are being promoted. These have the potential to serve as user platforms for negotiating water allocation among irrigated farmers. However, the user organizations reflect the sectoral responsibility of the government agencies. Their membership and structure do not take into account the multiple uses or users of water. Developing platforms that accommodate different user groups remains a major challenge for improving the overall productivity, as well as equity, of water use. (shrink)