This conceptual article has three parts: In the first, I discuss the shortcomings of treating the environment as a stakeholder and conclude that doing so is theoretically vague and lacks prescriptive force. In the second part, I recommend moving from broad notions of preserving nature and appeals to beauty to a more concrete analytic framework provided by the idea of human sustainability. Using sustainability as the focus of concern is significant as it provides us with a more tenable and quantifiable (...) standard for action, as in the case of carbon offsets and development of measures such as the United Nations Sustainability Indicators. In the final section, I draw on notions of stewardship to suggest that stakeholder management has a positive responsibility to promote sustainability. (shrink)

Purpose Corporate social responsibility communication on corporate websites have become an emerging trend by firms. Similarly, corporate websites have been used to manage stakeholders’ impressions about the organization. Meanwhile, CSR by firms have been criticized for been a manipulative tactics used by firms. The purpose of this paper therefore is to ascertain how telecommunication companies operating in Ghana communicate CSR on their corporate websites. Design/methodology/approach This study used a qualitative content analysis technique. It also used Bolino et al.’s impression management (...) framework as the conceptual framework. Data were extracted from the websites of four telecommunication companies operating in Ghana. Data were analyzed using thematic analysis techniques. Findings The results show that the companies use impression management in communicating CSR on their corporate websites. Account, assertive impression management; blaring, boasting, defensive impression management; demonstrative impression management; exemplification, favor-rendering, illustrative impression management; ingratiation, other-enhancement, other-focused impression management; self-enhancement, self-focused impression management; and self-promotion tactics are tactics prevalent in the CSR communication of the companies. Actor-to-actor link impression management and other emotional appeal also emerged as some of the impression management tactics used by the companies. Originality/value This provides insights into how organizations use impression management in their CSR communication on their corporate websites. Studies of this nature are limited. Again, studies specifically adapting Bolino et al.’s impression management to study CSR communication on corporate websites are rare. (shrink)

The creation of a specialized executive position that oversees sustainability activities represents a distinct shift in the structure of top management teams and their approach for addressing sustainability concerns. However, little is known about these management team members, namely the corporate sustainability officers or CSOs. We examine CSO appointments and their association with subsequent sustainability performance. Our results indicate that the creation of a CSO position may represent more of a symbolic versus substantive governance mechanism. Further tests suggest that CSO (...) expertise and the firm’s existing sustainability performance affect the association between the CSO and post-appointment sustainability performance. We find no association between CSO appointments and subsequent sustainability performance for firms that were already poor performers, while firms possessing relatively higher levels of prior sustainability performance appointing a CSO begin to experience significant improvements to performance after 3 years. We further find that CSOs with prior sustainability expertise are associated with increases in sustainability performance in firms that were already strong performers, but not in firms with poor sustainability performance. Non-expert CSOs, on the other hand, are associated with initial decreases in performance for poor performing firms, whereas better performing firms hiring non-expert CSOs are able to rely on other sustainability attributes of the firm and benefit from improvements in performance in the long term. We discuss the potential importance of these positions as it relates to symbolic versus substantive governance mechanisms through the lens of top management team literature streams. (shrink)

The objective of this study was to analyze the quality of climate information disclosed by companies and the impression management strategies they have developed to justify or conceal negative aspects of their performance. The study is based on a qualitative content analysis of the sustainability reports of 21 energy-sector companies that use the Global Reporting Initiative with A or A+ application levels over a period of 5 years. It contributes to the literature on climate disclosure by demonstrating the ineffectiveness of (...) the external assurance process in ensuring the quality and representativeness of the data. Significant non-compliance with GRI standards was identified in 86 of the 93 reports audited by a third party. In addition, six of the 21 companies surveyed were found to disclose increasingly opaque information over time, concealing information on the measurement and methodology used. Through this study, four impression management strategies were identified. These are employed either to justify certain information or to conceal it. In exposing the high incidence of non-compliance in GRI reporting and the use of impression management strategies by companies, this study shows that it will be difficult or impossible for stakeholders to reasonably assess, monitor and compare companies’ climate performance on the basis of these reports. (shrink)

Some researchers have argued that firms with favorable environmental performance are more likely to provide voluntary environmental disclosure, while others have argued that firms with poor environmental performance are most likely to disclose. The authors propose a curvilinear relation between environmental performance and environmental disclosure that is moderated by visibility. Data were obtained from S&P 500 firms queried by the Ceres’ Climate Disclosure Project. Results show a U-shaped environmental performance–environmental disclosure relation and a main effect for visibility, but no moderating (...) effect for visibility on the U-shaped environmental performance–environmental disclosure rela- tion. The authors discussed the implications of these results for future research and practice. (shrink)

The increasing pressures to conserve biodiversity—particularly for industries based on the exploitation of natural resources—have reinforced the need to implement specific measures in this area. Corporate commitment to preserving biodiversity is increasingly scrutinized by stakeholders and now represents an important aspect of business ethics. Although stakeholder involvement is often essential to the management of biodiversity, very few studies in the literature have focused on the details of this involvement. The objective of this paper is to analyze how mining and forestry (...) companies can manage biodiversity issues through stakeholder involvement based on a content analysis of 430 sustainability reports using the Global Reporting Initiative framework. The paper elucidates the reasons for such involvement, the nature of stakeholders involved, and the types of measures employed to manage biodiversity. Stakeholders’ motives for becoming involved revolve around four main issues: complexity and knowledge management; self-regulation and relationships with public authorities; legitimacy and social responsiveness; and commercial and strategic objectives. The stakeholders involved in biodiversity initiatives are essentially non-governmental organizations, experts and universities, public authorities, and coalitions of companies. In the end, the initiatives identified can be grouped into three categories: management practices, socio-political actions, and research and conservation measures. The paper provides various examples of these initiatives and shows how they can be implemented in collaboration with different stakeholders depending on the company’s objectives. The contributions the study makes to the literature on biodiversity management and the managerial implications of the study are analyzed in the discussion section. (shrink)

The concept of sustainability was developed in response to stakeholder demands. One of the key mechanisms for engaging stakeholders is sustainability disclosure, often in the form of a report. Yet, how reporting is used to engage stakeholders is understudied. Using resource dependence and stakeholder theories, we investigate how companies within the same industry address different dependencies on stakeholders for economic, natural environment, and social resources and thus engage stakeholders accordingly. To achieve this objective, we conducted our research using qualitative research (...) methods. Our findings suggest that the resource dependencies on different stakeholders lead to development of different stakeholder relationships and thus appropriate resources within the company to execute engagement strategies that are informing, responding, or involving. Our research explains why diversity exists in sustainability disclosure by studying how it is used to engage stakeholders. We find that five sustainability reporting characteristics are associated with the company’s stakeholder engagement strategy: directness of communication, clarity of stakeholder identity, deliberateness of collecting feedback, broadness of stakeholder inclusiveness, and utilization of stakeholder engagement for learning. Our study develops the literature by providing insight into companies’ choices of stakeholder engagement strategy thus explaining diversity in sustainability reporting based on the characteristics and relationships with specific stakeholders. (shrink)

Organizations today recognize that it is not only important to engage in corporate social responsibility, but that it is also equally important to ensure that information about CSR is communicated to audiences. At times, however, the CSR image perceived by audiences is not an accurate portrayal of the organization’s CSR identity and is, therefore, incongruent with the desired CSR image. In this paper, we build upon the nascent work on organizational impression management by examining CSR communication from an impression management (...) perspective. The model developed here proposes that incongruence between desired and current CSR images motivates an organization to decrease the incongruence through CSR communication. This relationship is moderated by four factors: importance of CSR image to the organization; power, status, and attractiveness of the target audience; importance of CSR image to the target audience; and media attention and public scrutiny. The model also identifies four dimensions of CSR communication structure and includes a feedback loop through which audience interpretation of the CSR communication can influence the organization’s CSR image incongruence. Two illustrative examples are provided to indicate how the model may be applied to organizations. This paper has several implications for research and practice. It draws connections between impression management theory and CSR and adds to the emerging literature on organizational impression management. It can also help organizations decide on the appropriate CSR communication structure to use in specific situations and be more effective in their CSR communication. (shrink)

This essay bridges together social network and institutional perspectives to examine how women on boards, by breaking up directors’ homophilous networks, contribute to board effectiveness. It proposes that through real and symbolic representations, women enhance perceptions of the board’s instrumental, relational, and moral legitimacy, leading to increased perceptions of the board’s trustworthiness which in turn fosters shareholders’ trust in the firm. Envisioning the gender diversification of boards as an event of institutional change, this article considers the critical role of shareholder (...) activists and legislative support from the SEC in the deinstitutionalization of old boys’ networks and the reinstitutionalization of gender diverse boards. This work is substantiated with evidence obtained through 34 semi-structured interviews, archival and documentary evidence. (shrink)

Some researchers have argued that firms with favorable environmental performance are more likely to provide voluntary environmental disclosure, while others have argued that firms with poor environmental performance are most likely to disclose. The authors propose a curvilinear relation between environmental performance and environmental disclosure that is moderated by visibility. Data were obtained from S&P 500 firms queried by Ceres' Climate Disclosure Project. Results show a U-shaped environmental performance—environmental disclosure relation and a main effect for visibility but no moderating effect (...) for visibility on the U-shaped environmental performance-environmental disclosure relation. The authors discussed the implications of these results for future research and practice. (shrink)

This paper examines the influence of internal barriers on the relationship between the organizational capability of stakeholder integration and proactive environmental strategies. We adopt a moderate hierarchical regression model to test the hypotheses using data from a sample of 73 managers in the business education industry. The paper contributes to stakeholder theory by showing that stakeholder integration positively influences the development of proactive environmental strategies when managers perceive internal barriers to the development of such strategies. This article also explores an (...) ethical dilemma—managers may use the stakeholder integration capability to support their own interests rather than to benefit stakeholders. (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)

As global warming continues to attract growing levels of attention, various stakeholders have put climate change on corporate agendas and expect firms to disclose relevant greenhouse gas information. In this paper, we investigate the consistency of the GHG information voluntarily disclosed by French listed firms through two different communication channels: corporate reports and the Carbon Disclosure Project. More precisely, we contrast the amounts of GHG emissions reported and the methodological explanations provided in each channel. Consistent with a stakeholder theory perspective, (...) we find that GHG amounts are significantly lower in the CR than in the CDP. We also find that firms increase the CR figures’ traceability when there is a discrepancy between disclosures in the two channels. We suggest that the aim of this greater traceability is to enhance information credibility across the different channels used. (shrink)

This article examines the work of professional service firms (PSFs) in their relationships with public corporations; work that is designed to ensure that investors and potential investors have information that will enable them to participate in the capital markets. Using an institutional theory lens, we view these efforts by PSFs as institutional maintenance work and specifically analyze their work related to policing (i.e., rating), enabling (i.e., tutoring), and embedding and routinizing (i.e., collaborating) that helps to support the capital market as (...) a core institution in society. We illustrate how there is a “dark” side to each of these forms of institutional work that exists because of ongoing conflicts of interest within and between their work practices. This dark side has the unintended consequence of producing often biased information or information unavailable to many. When a crisis brings this bias to light, some repair is introduced but often not enough to alleviate the distortion. Our contribution is, therefore, to shed light on the dark side of institutional maintenance work and to explore why repair is increasingly necessary, but often only partially effective. (shrink)

This paper explores the justifications and impression management strategies that industrial companies use to rationalize their impacts on climate change. These strategies influence the perceptions of stakeholders through the use of techniques of neutralization intended to legitimize the impacts of corporate operations in the area of climate change. Based on a qualitative and inductive approach, 10 case studies were conducted of large Canadian industrial emitters. Interviews were conducted with managers and environmental specialists. Public documentation was also collected when available. This (...) study identifies six main neutralization techniques that industrial emitters use to rationalize their impacts: self-proclaimed excellence, promotion of a systemic view, denial and minimization, denouncing unfair treatment and deceptive appearances, economic and technological blackmail, and blaming others. The paper develops a better understanding of corporate arguments and strategies aimed at influencing the perceptions of stakeholders, including policymakers. The study also contributes to the literature on impression management by shedding light on new strategies and techniques of neutralization used by managers to shape the perceptions of stakeholders on socially sensitive issues. (shrink)

We ask what type of neutralization techniques corporations apply to allegations of human rights abuses. We proceed by undertaking a Qualitative Content Analysis of 162 responses by ten extractives-sector firms over a period of 14 years. The firms were responding to accusations of human rights impacts documented by the Business and Human Rights Resource Centre. We use Garrett et al.’s :507–520, 1989) framework of neutralization techniques consisting of denial, justification, concession and excuse to examine the responses. During our QCA, we (...) observed emerging themes around self-promotion and evasive tactics. We contribute to existing literature by proposing ‘evasion’ as a novel neutralization technique, particularly in circumstances of corporate responses to accusations of wrongdoing. We argue that evasion occurs when firms refuse to engage in the debate brought forward in an accusation. In addition, we enrich our understanding of neutralization techniques by proposing subneutralization techniques in our analysis to diverge from that of other studies. We conclude by discussing the implications of the predominance of corporate narcissism and evasive neutralization techniques to the business and human rights movement and other international corporate responsibility standards. (shrink)

This paper discusses the issue of legitimacy and, in particular the processes of building, losing, and repairing environmental legitimacy in the context of the Deepwater Horizon case. Following the Deepwater Horizon catastrophe in 2010, BP plc. was accused of having set new records in the degree of divergence between its actual operations and what it had been communicating with regard to corporate responsibility. Its legitimacy crisis is here to be appraised as a case study in the discrepancy between symbolic and (...) substantive strategies in corporate greening and its communication. A narrative analysis of BP’s “beyond petroleum”-rebranding and the “making this right”-campaign issued in response to the Gulf of Mexico disaster discusses their respective implications for corporate change. Further, the question is addressed why BP’s green image endeavors were so widely accepted at first, only to find themselves dismissed as corporate greenwashing now. The study concludes that where a corporation’s “green narrative” consistently evokes established narratives, its legitimacy will be judged against narrative, rather than empirical truth. Thus, the narrative will be more willingly accepted as speaking for the issuing company’s legitimacy, irrespective of whether it reflects substantive greening or not. (shrink)

Transparency in business and society is one of the challenges raised in the encyclical Caritas in Veritate by Benedict XVI. This paper focuses on the issue by extending the literature on business ethics, corporate social responsibility, and corporate transparency in two dimensions. First, it reviews the understanding and framing of the transparency issue in Caritas in Veritate and in a selection of relevant Catholic Social Teaching (CST) publications. Second, this paper provides normative indications for corporate transparency decisions which reflect four (...) permanent principles of CST, that is, the common good, solidarity, subsidiarity, and respect for the human being. Inasmuch as human beings are worthy of love for their own sakes, the dimension of gift should always be present in relationships among them. This paper also provides insights for further studies on corporate transparency and the impact of religion on business ethics and corporate social responsibility. (shrink)

The sharing economy as an emerging field is characterized by unsettled debates about its shared purpose and defining characteristics of the organizations within this field. This study draws on neo-institutional theory to explore how sharing organizations position themselves vis-à-vis such debates with regard to (1) the values these organizations publicly promote to present themselves as “good” sharing organizations and (2) the business model features they make visible to appear as having the “right” organizational model. This study examines the online self-representations (...) of 62 prototypical sharing organizations in Germany with regard to value propositions and business model features. A semantic network analysis of the features reveals two distinct categories of sharing organizations: grassroots initiatives and platform-based organizations. By showing how value propositions and business model features are linked in the sharing economy, the findings indicate the different legitimation strategies of grassroots initiatives and platform-based organizations, which we term “sustainability by model” and “sustainability by feature.” These findings broaden our understanding of the strategies that organizations apply to cope with societal expectations in the emerging sharing economy. (shrink)

The emergence of environmental governance practices raises a fundamental question as to whether they are substantive or symbolic. Toward that end, we analyze the relationship between a firm’s environmental governance and its environmental management as reflected in its ultimate outcome, environmental performance. We posit that substantive practices would bring changes in organizations, most notably in terms of improved environmental performance, whereas symbolic practices would portray organizations as environmentally committed without making meaningful changes to their operations. Focusing on a sample of (...) environmentally sensitive firms, results are consistent with environmental governance mechanisms being predominantly part of a symbolic approach to manage stakeholder perceptions on environmental management, having little substantial impact on organizations. Statistical analyses show mostly that there is no relation between environmental governance mechanisms and environmental performance, measured in terms of regulatory compliance, pollution prevention, and environmental capital expenditures. However, there is some indication that environmental incentives are associated with pollution prevention. Interviews with corporate directors shed further light on these results by underlining that environmental governance mechanisms are employed at the board level to protect the organization from reputational and/or regulatory harm, but are not necessarily intended to proactively improve environmental performance. (shrink)

How can firms support their customers' collaborative, social responsibility initiatives — and especially pro-environmental, firm—customer collaborations? Does corporate transparency affect customers' willingness to undertake pro-environmental collaborative programs? This study addresses these questions in relation to the US residential electricity market. It focuses on the impact of customers' perceptions of the utility's degree of transparency and on the willingness to engage in proenvironmental behavior related to electricity consumption. The responses of 1257 interviewees from US households to questions related to their electricity (...) suppliers are analyzed through structural equation models (SEMs) using latent variables. Results show that customers' perceptions of an electricity utility's transparency affect their willingness to collaborate in environmental programs, and that the degree of perceived transparency of the utility is related to customers' environmental awareness. (shrink)

Astroturf organizations are fake grassroots organizations usually sponsored by large corporations to support any arguments or claims in their favor, or to challenge and deny those against them. They constitute the corporate version of grassroots social movements. Serious ethical and societal concerns underline this astroturfing practice, especially if corporations are successful in influencing public opinion by undertaking a social movement approach. This study is motivated by this particular issue and examines the effectiveness of astroturf organizations in the global warming context, (...) wherein large corporate polluters have an incentive to set up astroturf organizations to undermine the importance of human activities in climate change. We conduct an experiment to determine whether astroturf organizations have an impact on the level of user certainty about the causes of global warming. Results show that people who used astroturf websites became more uncertain about the causes of global warming and humans’ role in the phenomenon than people who used grassroots websites. Astroturf organizations are hence successful in promoting business interests over environmental protection. In addition to the multiple business ethics issues it raises, astroturfing poses a significant threat to the legitimacy of the grassroots movement. (shrink)

Concern for NGO accountability has been intensified in recent years, following the growth in the size of NGOs and their power to influence global politics and curb the excesses of globalization. Questions have been raised about where the sector embraces the same standards of accountability that it demands from government and business. The objective of this paper is to examine one aspect of NGO accountability, its discharge through annual reporting. Using Habermas’ theory of communicative action, and specifically its validity claims, (...) the research investigates whether NGOs use their annual reporting process to account to the host societies in which they operate or steer stakeholder actions toward their own self-interests. The results of the study indicate that efforts by organizations to account are characterized by communicative action through the provision of truthful disclosures, generally appropriate to the discharge of accountability and in a manner intended to improve their understandability. At the same time, however, some organizations exhibit strategically oriented behaviors in which the disclosure content is guided by the opportunity to present organizations in a particular light and there appears a lack of rhetor authenticity. The latter findings cast doubt on the ethical inspiration of NGOs and the values they demand from business communities, and questions arise as to why such practices exist and what lessons can be learnt from them. (shrink)

This paper analyses the role of external pressures, internal motivations and their interplay, with the intention of identifying whether they drive substantive or instead symbolic implementation of ISO 14001. The context is one of economic crisis. We focus on Greece, where the economic crisis has weakened the country’s institutional environment, and analyse qualitatively new interview data from 45 ISO 14001 certified firms. Our findings show that weak external pressures can lead to a symbolic implementation of ISO 14001, as firms can (...) defend their legitimacy without incurring the costs of internalization in the local market; weak external pressures can lead to substantive implementation of ISO 14001 when firms have strong internal motivations seeking to strategically differentiate from competitors in international markets. Firms internalize ISO 14001 so as to restore their legitimacy and reputation in foreign markets and stimulate their competitiveness; and strong internal motivations pave the way for companies to stimulate their competitiveness by enhancing their efficiency, as some companies might strengthen their position in the local market by implementing ISO 14001 substantively. The contribution of this paper to the literature on ISO 14001 internalization lies in refining existing theory on the importance of internal motivations for the substantive implementation of ISO 14001 in the context of economic crisis. In addition, this paper extends current theory by challenging studies that dismiss the importance of external pressures. We argue that the intensity of external pressures influences the internalization of ISO 14001, but propose that this relationship might not be linear. (shrink)

Prior research suggests that voluntary environmental governance mechanisms operate to enhance a firm’s environmental legitimacy as opposed to being a driver of proactive environmental performance activities. To understand how these mechanisms contribute to the firm’s environmental legitimacy, we investigate whether environmental corporate governance characteristics are associated with voluntary environmental disclosure. We examine an increasingly important attribute of a firm’s disclosure setting, namely the disclosure of greenhouse gas (GHG) information. GHG information represents proprietary non-financial information about the firm’s exposure to environmental (...) concerns and is related to the firm’s operations and future profitability. Thus, we expect governance participants would view such information as a potentially important strategic device for managing stakeholders’ demands for information concerning environmental risks. We find that the presence of an environmental committee and a Chief Sustainability Officer (CSO) is positively associated with the likelihood of GHG disclosure and that CSOs are associated with disclosure transparency. Further analysis reveals that the likelihood of disclosure is associated with committee size, number of committee meetings, expertise of committee members and CSO, and overlap between the environmental committee and audit committee. Only expertise of the environmental committee members and the CSO are associated with GHG disclosure transparency, while larger committees tend to be associated with lower transparency. Our results are particularly important to those with interests in evaluating the potential role that corporate governance mechanisms play in responding to stakeholder concerns about environmental risks. Directors and officers who are considering appointment to similar governance positions, may wish to consider what attributes would make such governance positions more influential. (shrink)

While proponents of sustainability reporting believe in its potential to help corporations be accountable and transparent about their social and environmental impacts, there has been growing criticism asserting that such reporting schemes are utilized primarily as impression management tools. Drawing on Goffman’s self-presentation theory and its frontstage/backstage analogy, we contrast the frontstage sustainability discourse of a sample of large U.S. oil and gas firms to their backstage corporate political activities in the context of the passage of the American-Made Energy and (...) Good Jobs Act, also known as the Arctic National Wildlife Refuge Bill. The ANWR Bill was designed to allow oil exploration within the most sensitive environmental areas in the Refuge and this bill was vigorously debated in the United States Congress in 2005 and 2006. Our results suggest that the firms’ sustainability discourse on environmental stewardship and responsibility contrasts sharply with their less visible but proactive political strategies targeted to facilitate the passage of the ANWR Bill. This study thus contributes to the social and environmental accounting and accountability literature by highlighting the relevance of Goffman’s frontstage/backstage analogy in uncovering and documenting further the deceptive nature of the discourse contained in stand-alone sustainability reports. In addition, it seeks to contribute to the overall understanding of the multifaceted nature of sustainability reporting by placing it in relation to corporate political activities. (shrink)

In this paper we investigate whether, and how, corporate management strategically uses disclosure to manage the perceptions of different organizational audiences. In particular, we examine the interactions between the FIAT Group and three of its key organizational audiences—the local press, the international press, and the financial analysts, which are characterized by different levels of salience for the company. We focus on both how management reacts to the optimism level existing within each audience and how the narrative disclosure tone adopted by (...) FIAT influences the ex-post optimism in the local and international press or in the financial analyst community. We investigate the disclosure of the FIAT Group over a 6-year period , during which 70 price-sensitive press releases were published. On the basis of 1,887 news articles published in Italian newspapers and 411 analyst reports, we report evidence of different strategic patterns in the interaction processes between FIAT and its audiences. Our findings also indicate some differences in the way FIAT is affected by, and in turn, affects the sentiment of each audience, thus highlighting that the salience of the stakeholder is an important driver of the adoption of impression management techniques. Taken together, our findings point to issues related to setting the “tone at the top” and potential ethical matters. (shrink)

Stockholder and stakeholder perspectives have been positioned in the literature as being in tension, and thus a potential source of innovation and change. However, researchers have overlooked a systematic examination of this presumption in theory and in practice. This study explores the ways that stockholder and stakeholder assumptions are presented by theorists and compares these with expressions of stockholder and stakeholder perspectives used by firms in practice. We argue that theoretical entrenchment dichotomizing these perspectives has disrupted the ability of researchers (...) to leverage this tension. While scholarship remains trapped in a vicious cycle, we also argue that firms in practice express only the acceptance dimension of a virtuous cycle. Our empirical research demonstrates that firms accept and accommodate the paradoxical tension between managing for stockholders versus balancing the interests of stakeholders. This is evidenced by strategies we identify as book‐ending, cadence, continuous and simultaneous co‐mingling, and hybridization. We find that in practice these tensions are more integrated whereas in theory they are treated as more distinct and, often, in conflict. We suggest ways in which both scholarship and practice can better leverage tension as paradoxical opportunity. (shrink)

In this paper, we examine how organizations’ impression management evolves in response to rising stakeholder pressures regarding organizations’ corporate responsibility initiatives. We conducted a comparative case study analysis over a period of 13 years for two organizations—Exxon and BP—that took extreme initial stances on climate change. We found that as stakeholder pressures rose, their IM tactics unfolded in four phases: advocating the initial stance, sensegiving to clarify the initial stance, image repairing, and adjusting the stance. Taken together, our analysis of (...) IM over these four phases provides three key insights about the evolution of IM in the face of rising pressures. First, when faced with stakeholder pressures, it seems that organizations do not immediately resort to conforming but tend to give in gradually when pressures increase and start to come from relatively powerful stakeholders. Second, evolution of IM seems to be characterized by path dependence, i.e., even as organizations’ positions evolve, they continue to show their conviction in their initial positions and try to convey that their subsequent positions flow logically from the previous ones. Finally, IM involves navigation between symbolism and substance, and companies tend to strive toward harmonizing their symbolic and substantive actions as stakeholder pressure increases. (shrink)

This article examines the work of professional service firms (PSFs) in their relationships with public corporations; work that is designed to ensure that investors and potential investors have information that will enable them to participate in the capital markets. Using an institutional theory lens, we view these efforts by PSFs as institutional maintenance work and specifically analyze their work related to policing (i.e., rating), enabling (i.e., tutoring), and embedding and routinizing (i.e., collaborating) that helps to support the capital market as (...) a core institution in society. We illustrate how there is a “dark” side to each of these forms of institutional work that exists because of ongoing conflicts of interest within and between their work practices. This dark side has the unintended consequence of producing often biased information or information unavailable to many. When a crisis brings this bias to light, some repair is introduced but often not enough to alleviate the distortion. Our contribution is, therefore, to shed light on the dark side of institutional maintenance work and to explore why repair is increasingly necessary, but often only partially effective. (shrink)