This article works toward a more meaningful answer to the question, What is a corporate issue? The article builds from existing literature in business strategy, public policy, and business and society. It synthesizes and integrates this literature and then expands the major points. The result is a reformulated definition of the corporate issue construct that enhances theory building and research activities in the area of issues management.

In this article, the authors investigate the applicability and usefulness of three alternative perspectives on corporate issues management: issue life cycle theory, legitimacy theory, and stakeholder theory. Each perspective makes certain as- sumptions about the nature of issues management activities and certain general predictions about corporate social responsiveness. The authors test the relative applicability of the three theories through a case study of the issues management activities of four large forestry companies in Finland and Canada. The authors conclude that all (...) three perspectives have value but differ in the level of analysis and time frame to which they apply. (shrink)

Three characteristic problems in the measurement of corporate social performance (CSP) center around the need to measure three “metrics”: the metric of performance evaluation (M1), the metric of performance measurement (M2), and the metric of performance perception and belief (M3). The central issues in each metric are commitment, revelation, and belief, respectively. This article discusses each metric and provides sets of theoretical propositions under M2 and M3 describing behavior in those contexts. Some of the propositions inM2form an explicit partial theory (...) of factors affecting the likelihood of CSP measurement. Those under M3 are developed from more general ones in the theory of testaments. (shrink)

Drawing on the literatures of industrial crises, corporate reputation, and stakeholder theory, this article is an empirical investigation into the impact that accident characteristics have on the corporate reputation for social performance of the firms involved. The main findings are the following: First, environmental damage does have an impact on the reputational scores for social performance, whereas damage to human life, surprisingly, does not. Second, the complexity of an accident plays a role in the reevaluation of the social performance reputational (...) scores. Third, industry executives and analysts differ in their reputational reevaluations of accidents with respect to the complexity of the event. The article concludes with a discussion of the implications of these findings. (shrink)

This research draws on complexity theory to provide an alternative conceptualization of issue management. We use six dynamics of complexity drawn from complex adaptive systems—equipoise, turbulence, sensitive conditions, bifurcation, attractor emergence, and symmetry breaking—to develop a metaphorical framework that describes what occurs during various periods of issue activity and what propels issues from one period of activity to another. We illustrate the framework with a case study of the pharmaceutical industry response to the HIV/aids pandemic in Sub-Saharan Africa. The article (...) concludes with a discussion of the additional affordances this framework provides to extend and compliment issue life cycle models. (shrink)

The problem of opportunity discovery is at the heart of entrepreneurial activity. Cognitive limitations determine the search for and the analysis of information and, as a consequence, constrain the identification of opportunities. Moreover, typical personal characteristics – locus of control, need for independence and need for achievement – suggest that entrepreneurs will tend to take a central position in their stakeholder environments and thus fail to adapt to the complexity of stakeholder relationships in their entrepreneurial activity. We approach this problem (...) by adopting a network perspective on stakeholder management. We propose a heuristic approach of stakeholder analysis, which requires two mappings of the entrepreneurial constituents. The first mapping focuses on current interactions between the entrepreneur and their stakeholders, while the second focuses on a specific issue and the stakeholders that constitute it. In effect, such a stakeholder analysis requires entrepreneurs to use the complexity of stakeholder relationships in order to go beyond their cognitive limitations and thus facilitate the discovery of new opportunities. As we will argue, this has clear implications for the ethics and activities of entrepreneurs. (shrink)

We propose that firms that engage in morally imaginative sensemaking will manage society's changing ethical expectations more effectively than those engaging in habituated sensemaking. Specifically, we argue that managers engaging in habituated sensemaking will tend to view changes in expectations as threats and respond to them defensively. In contrast, morally imaginative managers will tend to see these same changes as opportunities and address them by proactively or interactively engaging stakeholders in learning processes. We contribute to the literature on moral imagination (...) by highlighting the value of moral imagination relative to conventional sensemaking, and by positioning moral imagination as an ongoing mode of sensemaking. While we recognize that managers' capacity to continuously address changing ethical expectations using moral imagination is constrained by cognitive limitations, we posit that morally imaginative sensemaking may economize on cognitive resources over time by enabling managers to avoid managing ethical issues unproductively based on habit. We also contribute to the issues management literature by calling attention to two underlying factors, managerial sensemaking mode and firm enterprise strategy, that drive companies' approaches to issues management. (shrink)

This article aims to deepen the understanding of the processes and specific actions aimed at influencing and shaping business practices through dynamic stakeholder relationships. An inductive, longitudinal study of all players involved in a stakeholder conflict identified four clusters of influence tactics that were used by both secondary stakeholders and their target firms: issue raising, issue suppressing, positioning, and solution seeking. The stakeholders studied built elaborate influence chains and worked to direct influence flows. The study contributes to stakeholder theory by (...) offering a refined understanding of both bilateral and mutual-influence tactics, expanding the theory's focus beyond bilateral relationships, and highlighting the use of dependence relationships among multiple embedded organizations to build influence over a specific target, and more generally, an organizational field. These findings are discussed in light of work on social movement organizations and institutional theory. (shrink)

The authors apply the issue life cycle model to analyze the 1999 through 2001 dispute between the Securities and Exchange Commission and the accounting profession concerning auditor independence. The analysis also brings additional insights that extend understanding of the issue life cycle and issues development. This analysis highlights the roles of a trigger event, the shift of an issue from a technical concern to a public debate, and likely recurrence. The reappearance of the auditor independence issue in 2002 with accounting (...) scandals is consistent with the article’s findings and highlights the use of the issue life cycle model and issue evolution. (shrink)

When should a company introduce a new ethical norm? This article uses the value-belief-norm theory to argue that the more an ethical issue threatens a company's ethical value and the more the company has an ethical responsibility to protect such value against such threat, then the more desirable it is for a company to establish ethical norms to protect said value. Distinguishing seven characteristics of an ethical issue and four conditions for a company's ethical responsibility helps identify the situations in (...) which a company should introduce a new ethical norm. The resulting framework, with corresponding guidelines, specifies two accelerators and one inhibitor that influence the desirable speed for introducing new norms. (shrink)

Business & Society’s 60th anniversary affords an opportunity to reflect on the journal’s achievements in the context of the wider field. We analyze editorial commentaries to map the evolving mission of the journal, assess the achievement of the journal’s mission through a thematic analysis of published articles, and examine Business & Society’s distinctiveness relative to peer journals using a machine learning approach. Our analysis highlights subtle shifts in Business & Society’s mission and content over time, reflecting variation in the relative (...) emphasis on scholarly quality versus policy/practice relevance, and building the journal and its academic community versus addressing issues of concern to wider society. While Business & Society’s intended missions have been substantially and sequentially achieved, an increased emphasis on the society-business nexus and a critical approach to interdisciplinarity could further enhance Business & Society’s leading role within business and society research and attract new generations of contributors and readers. (shrink)

The purpose of this article is to investigate to what extent is business and society literature idealistic as it advocates the adoption of high moral norms for business performance. The author discusses the central theses of mainstream themes in this literature—corporate social responsibility, corporate social responsiveness, social issues, corporate social performance, stakeholder management, corporate citizenship, business ethics, sustainable development, and corporate sustainability—and evaluates their descriptive accuracy, normative validity, and instrumental power. Poor description of reality, underdeveloped business logic, and questionable prescriptions (...) are indicative of the idealism of these themes. This study reveals many realistic and achievable propositions, which dilute the concern that business and society literature is idealistic. However, three elements in the field—its (rhetorical) criticism of corporate conduct, the predominantly normative notions of its concepts, and its underdeveloped instrumental ideas—underline its idealistic orientation. (shrink)

The inherent conflict in the taxation of married couples versus single individuals is examined. With competing social and economic outcomes, the taxation of married couples is tied to societal values and the political environment. The authors illustrate the issue by describing three methods of personal income taxation currently used across the globe. Factors such as stakeholder interests, workforce participation, and the political environment are important in determining acceptable trade-offs. Analyzing this issue in terms of the issue life cycle, the authors (...) conclude that in the United States the marriage tax penalty will be an enduring issue because of competing values and interests. (shrink)