The popularity of the stakeholder model has been achieved thanks to its powerful visual scheme and its very simplicity. Stakeholder management has become an important tool to transfer ethics to management practice and strategy. Nevertheless, legitimate criticism continues to insist on clarification and emphasises on the perfectible nature of the model. Here, rather than building on the discussion from a philosophical or theoretical point of view, a different and innovative approach has been chosen: the analysis will return to the origin (...) of stakeholder theory and will keep the graphical framework firmly in perspective. It will confront the stakeholder model’s graphical representation to the discussion on stakeholder definition, stakeholder identification and categorisation, to re-centre the debate to the strategic origin of the stakeholder model. The ambiguity and the vagueness of the stakeholder concept are discussed from managerial and legal approaches. The impacts of two major shortcomings of the popular stakeholder framework are examined: the boundaries and the level of the firm’s environment, and the ambivalent position of pressure groups and regulators. Working pragmatically, with a focus on the managerial and organisational perspective, an attempt is made to clarify the categorisations and classifications by introducing new terminology with a distinction between stakeholders, stakewatchers and stakekeepers. The analysis will finally lead to a proposed upgraded and refined version of the stakeholder model, with incremental ameliorations close to Freeman’s original model and a return of focus to its essence, the managerial implications in a strategic approach. (shrink)

This article seeks to expand business and society research in a number of ways. Its primary purpose is to redraw two core corporate social responsibility theories, enhancing their relevance for small business. This redrawing is done by the application of the ethic of care, informed by the value of feminist perspectives and the extant empirical research on small business social responsibility. It is proposed that the expanded versions of core theory have wider relevance, value, and implications beyond the small firm (...) context. The theorization of small business social responsibility enables engagement with the mainstream of CSR research as well as making a contribution to small business studies in scholarly, policy, and practice terms. (shrink)

Stakeholder literature has acknowledged the need to complement the extant theory on stakeholder management by more dynamic perspectives. This article makes use of the recent terminology of stakewatcher and stakeseeker to illustrate the dynamic aspect of stakeholder theory transposed in the graphical representation of Freeman’s stakeholder model. Presenting a few selected case studies, it applies the scheme on the concept of value responsibility chain; it exemplifies the role of stakeseekers in various forms of activism, from shareholders, NGOs and government, in (...) the stakeholder mobilisation process. This article clarifies how stakewatchers and stakeseekers can profoundly affect stakeholder salience, especially in crises. The transposition and integration of the dynamic aspect of stakeholder theory into the graphical representation strengthen the forceful pedagogical value of the Freeman’s stakeholder graphical model. (shrink)

In the management and business ethics literatures, stakeholder engagement has been demonstrated to lead to more ethical management practices. However, there may be limits on the extent to which stakeholder engagement can, as currently conceptualized, resolve some of the more difficult ethical challenges faced by managers. In this paper we argue that stakeholder engagement, when seen as a way of reducing five types of knowledge problems—risk, ambiguity, complexity, equivocality, and a priori irreducible uncertainty—can aid managers in resolving such ethical challenges. (...) Using a practical illustration of the ethical challenges surrounding the development and application of genetic modification technologies, we demonstrate how stakeholder engagement enables managers to better address these knowledge problems, thereby to manage more ethically. In this way, we suggest that stakeholder engagement has an even more crucial role to play in business ethics research and practice. (shrink)

This research advances our understanding of the manifestation of tensions and ethical issues in entrepreneurial finance. In doing so, we offer an overview of ethics in entrepreneurship and finance, delineating the curious paucity of research at their intersection. Using twelve vignettes, we put forward the asymmetries between entrepreneurs and investors and discuss a set of ethical problems that arise among key actors centring on the dynamics of venture partner entry and exit, applying the multiple-lens ethical perspective to analyse these issues. (...) This analysis culminates in the introduction of a general classification scheme for ethical problems across venture partners. Our analysis highlights the moral dimension inherent in the entry and exit of venture partners and the importance of considering moral judgement, as well as intention in future analysis of any decision-making. Our study also points to the moral responsibility in finance, especially to the mutual moral responsibilities of investors and entrepreneurs. By integrating ethics into finance, this research also demonstrates that in the case of venture partner exit, an ethical approach and decent governance go beyond compliance to the law. We conclude with implications for practitioners, specifically with some proposals for a solution to the problem of blocked and forced exit. Together, we make several contributions to the literature by integrating ethics, finance and entrepreneurship, and we call for future research to stimulate a growing body of research within this presently overlooked area. (shrink)

The object of this article is to demonstrate how stakeholder theory can be enlarged and enhanced by two communications theories, media systems dependency and community infrastructure theory. The stakeholder perspective is often represented by a diagram in which a firm is centrally positioned, surrounded by stakeholders. However, relationships between stakeholders are given relatively little attention, the various groups theoretically encompassed by the term “community” remain relatively undefined, and other marginalized stakeholders often go unrecognized. MSD and CIT can enable us to (...) conceptualize the stakeholder model more clearly, to develop research projects that more adequately capture the dynamic quality of stakeholder relationships, to tailor management strategies to particular stakeholder characteristics, and to understand corporate social responsibility messages. As an example, stakeholder theory, combined with MSD and CIT, is applied to California’s cannabis/marijuana industry. (shrink)

There is a longstanding debate in the stakeholder literature as to who and what really counts as the stakeholders of the firm. Likewise, there have been discussions on whether nature should be considered a stakeholder of the firm. However, one seldom encounters any definitions of the key concepts, that is of nature or the natural environment . We seek to contribute to the debate by taking a closer look at what this thing called nature actually is. In addition, we discuss (...) the implications of this conceptual refinement for the stakeholder model. In order to reinforce the status of the natural environment in the stakeholder model, we propose that any visualisation of a stakeholder network should be embedded in the natural environment. (shrink)

The inconclusiveness of previous research on the association between gender diverse boards and corporate social performance has led us to revisit the question in light of stakeholder management and institutional theories. Given that corporate social responsibility is a multidimensional concept, we test the influence of GDB on various groups of stakeholders. By considering the interaction between stakeholders’ power and directors’ personal motivations toward the prioritization of stakeholders’ claims, we find that GDB are positively related to CSR dimensions that are related (...) to less powerful stakeholders such as the environment, contractors, and the community. However, GDB do not appear to have a significant impact on CSR dimensions that are associated with stakeholders who benefit from more institutionalized power, such as employees and customers. (shrink)

Stakeholder theory advocates that firms bear responsibility for the implications of their actions. However, while a firm affects or can affect stakeholders, stakeholders can also affect the corporation. Previous stakeholder theorising has neglected the reciprocal nature of responsibility. The question can be asked whether—in a spirit of reciprocity, loyalty and fairness—stakeholders should treat the corporation in a fair and responsible way. This study based on different definitions of stakeholders argues that various stakeholder attributes differ for different categories of stakeholders. This (...) analysis presumes that the attribute of stakeholder reciprocity can probably be restricted to real stakeholders, labelled stakeowners: genuine stakeholders with a legitimate stake, the loyal partners who strive for mutual benefits. Stakeowners own and deserve a stake in the firm. Stakeholder reciprocity could be an innovative criterion in the corporate governance debate as to who should be accorded representation on the board. Corporate social responsibility should imply corporate stakeholder responsibility. (shrink)

Fortis, the leading Benelux financial group, had been a success story of successive mergers of bank and insurance companies, with leadership in corporate social responsibility (CSR). One year after the acquisition of the major Dutch financial conglomerate ABN AMRO, the global financial crisis caused the collapse of the Fortis group. The purpose of this article is to use the case study of Fortis’s recent fall as a basis for reflective considerations on the financial crisis, from stakeholder and ethical perspectives. A (...) selected number of key events of the history of the dramatic crisis at Fortis will be analysed from different ethical frameworks. Special consideration will be given to fairness of communication, shareholder activism and conflicts of interests of CEO’s mergers opportunities. A confrontation between the CSR policy and the reality raises the fundamental questions why the powerful CSR guidelines and ethical principles did not help in the assessment of the risks. (shrink)

Dynamics concerns the process of change in variable conditions through time at any level of analysis. Various important issues or topics in stakeholder theory and practice involve consideration of change over time and thus unavoidably involve dynamics. While dynamics has received explicit recognition in stakeholder literature, dynamic analysis remains partly tacit and suffused through the literature. One reason is that dynamics remains difficult to model even in economics. This article provides a basic orientation to stakeholder dynamics as a key conceptual (...) and methodological issue for stakeholder thinking. This article identifies current literature concerning stakeholder dynamics and evaluates future directions in dynamic reasoning that would help build stakeholder theory and improve practice of stakeholder management. Notions of competition, influence strategies, change in stakeholder networks, mindsets, salience or values, learning, creative destruction, long-term sustainability, stakeholder reciprocity, sustainable development, and value creation all embed change and thus time dynamics. Static complexity and heterogeneity across units-of-analysis are not the same as dynamics but do also change over time. Dynamics concerns how change process influences consequences (later in time) in relationship to antecedents (earlier in time). Management copes with change process, as much as with complexity and variation in antecedents and consequences. (shrink)

Non-governmental organizations and pressure groups have taken up the mission of counterbalancing the huge power of the multinational corporations. Curiously, while most NGOs have a sincere ethical background and a genuine ethical motivation, the way some activist groups and NGOs themselves act does not always live up to the principles they advocate. Research using a multiple case study methodology is used to provide an illustration of various questionable practices followed by pressure groups revealing a range of tactics. The concerns, the (...) objectives and the legitimacy of NGOs and activist groups will be discussed, along with their strategies and tactics. A framework will be developed as a basis for analysing the ethical aspects of the various NGO actions. The analysis of the cases will reveal some worrisome inconsistencies between the demands and the practices of NGOs and activist groups. Should not the means employed by activists and NGOs be consistent with their own espoused or implied values? As power gives responsibility, NGOs should be seen as having corporate stakeholder responsibility. (shrink)

The paper builds on the stakeholder salience framework and applies a social identity approach to explain family firm dynamics and how these could impact on family firm governance and ethics. In particular, we consider the family as the main stakeholder for family firms and we refer to the recent approaches to stakeholder theory based on ‘names-and-faces’ and on social identity to focus on family members at the individual and organizational level. Family businesses offer an opportunity to study stakeholder salience in (...) settings with multiple logics. Our paper acknowledges how the attributes of legitimacy, power and status, for family business members, can derive from three different institutional settings (family, business and local community) and how these attributes are assigned and gained by family members on the basis of the stakes they put (or could put) on the business. From the analysis of these dynamics specific ethical considerations emerge. (shrink)

This paper presents a proof of concept for a graphical models approach to assessing the moral coherence and moral robustness of systems of social interactions. “Moral coherence” refers to the degree to which the rights and duties of agents within a system are effectively respected when agents in the system comply with the rights and duties that are recognized as in force for the relevant context of interaction. “Moral robustness” refers to the degree to which a system of social interaction (...) is configured to ensure that the interests of agents are effectively respected even in the face of noncompliance. Using the case of conscientious objection of pharmacists to filling prescriptions for emergency contraception as an example, we illustrate how a graphical models approach can help stakeholders identify structural weaknesses in systems of social interaction and evaluate the relative merits of alternate organizational structures. By illustrating the merits of a graphical models approach we hope to spur further developments in this area. (shrink)

The existence of a firm can be seen as a necessary condition for the existence of stakeholders. However, in the stakeholder literature, the firm has remained a relatively underdeveloped and fuzzy construct. In this essay, we examine how the firm has been conceptualized (explicitly or implicitly) in earlier research and suggest that, at least in stakeholder thinking, the firm can be considered as having an emergent nature. We elaborate this idea by building on the resent philosophical discussions of emergence and, (...) as a result, propose the emergentist stakeholder model of the firm. (shrink)

This article investigates the moderating effects of organizational social consciousness on the natural environmental competency and innovativeness relationship. Organizational social consciousness reflects the organization’s awareness of its place and contribution to the larger system in which it exists and is developed through an organization’s social responsibility, ethics, culture, corporate values, and the view of its stakeholders. Through our study of key strategic decision makers from organizations located in the USA, we operationalize organizational social consciousness and demonstrate the efficacy of this (...) construct in relation to the organizational-level constructs of environmental management competency and innovativeness. Our results reveal that organizational social consciousness positively strengthens the natural environmental competency to organizational innovativeness relationship. (shrink)