Stakeholder engagement has grown into a widely used yet often unclear construct in business and society research. The literature lacks a unified understanding of the essentials of stakeholder engagement, and the fragmented use of the stakeholder engagement construct challenges its development and legitimacy. The purpose of this article is to clarify the construct of stakeholder engagement to unfold the full potential of stakeholder engagement research. We conduct a literature review on 90 articles in leading academic journals focusing on stakeholder engagement (...) in the business and society, management and strategy, and environmental management and environmental policy literatures. We present a descriptive analysis of stakeholder engagement research for a 15-year period, and we identify the moral, strategic, and pragmatic components of stakeholder engagement as well as its aims, activities, and impacts. Moreover, we offer an inclusive stakeholder engagement definition and provide a guide to organizing the research. Finally, we complement the current understanding with a largely overlooked dark side of stakeholder engagement. We conclude with future research avenues for stakeholder engagement research. (shrink)

We draw from resource dependence and institutional theories to explore how board characteristics associated with directors’ capacities to provide resources and legitimacy (i.e., board size, the number of non-executive, interlocking, and female directors) along with regulative, normative, and cultural-cognitive institutional conditions combine to shape firm environmental, social, and governance (ESG) performance. Using a process of configurational theorizing with fuzzy set qualitative comparative analysis and data from firms in 32 countries, we identify multiple equifinal configurations that are associated with high and (...) low ESG performance. We find that high and low ESG performance have different drivers due to complementarities among the presence and absence of board characteristics. Our results also show that the effectiveness (or not) of the bundles of boards’ characteristics for ESG performance varies across institutional contexts. By leveraging these findings to construct a typology of board archetypes that lead to high and low ESG performance, we offer novel theoretical and empirical insights to scholars as well as implications for practice. (shrink)

Corporate social responsibility (CSR) disclosure is becoming increasingly important in practice, yet knowledge about the antecedents of such CSR initiatives is limited. Drawing on faultline theories, we expect that the compositional attributes of top management teams, such as the level of heterogeneity, influence their decisions about CSR disclosure and reporting. Data and a sample from Chinese publicly traded companies are used to examine our hypotheses. Our results demonstrate that a top management team's faultline strength is negatively related to CSR disclosure (...) decisions and CSR report quality. We contribute to the literature about CSR disclosure by offering specific insights, through a micro-level analysis, about how to compose and structure top management teams to advance CSR in emerging economies such as China. Practical implications for managers and policymakers are also discussed. (shrink)

The study investigates how board cultural diversity (BCD) affects bank stakeholder engagement through improved corporate social performance (CSP) and whether banks' corporate social responsibility (CSR) strategy mediates the relationship between BCD and banks' social performance. Adopting an international sample of 379 banks from 2010 to 2019, we found that BCD improves engagement in socially responsible issues in the banking sector. Moreover, we show a mediating role of strategic CSR on the relationship between BCD and banks' social performance. Hence, we contribute (...) to the research on the role of corporate governance mechanisms as drivers of CSR engagement. Furthermore, based on the mediation effect of strategic CSR, we advance the discussion on the link between BCD and banks' social performance. Our findings provide implications for banks and policy-makers, indicating the opportunity to promote cultural diversity, which supports socially responsible banking, while a CSR strategy positively impacts the stakeholder approach in the banking industry. (shrink)

This study seeks to shed light on the effect of star CEOs on the environmental, social, and governance (ESG) performance of Chinese firms. Relying on the theoretical perspective of role identity and role constraints, we analyze data from 1222 Chinese firms listed on the Shanghai and Shenzhen Stock Exchanges from 2006 to 2019. The results analyzed using the ordinary least squares estimate method reveal a positive effect of star CEOs' extreme confidence and legitimacy pressure mechanisms on ESG performance. We also (...) find that this positive relationship is negatively moderated by higher organizational slack but strengthened by a lower level of regional marketization, as the degree of firms' dependence on external stakeholders' resources differs significantly. Additionally, this study finds that ESG activities are less likely to be associated with firm performance if star CEOs pursue them to satisfy their need for star status. These findings supplement the early tests of the influence mechanism of star CEOs on organization-level results and expand the context discussion of role identity and role constraints theory in the Chinese institutional environment. (shrink)

Scholars have long suggested that CEOs can benefit from corporate philanthropy. However, little is known about this relationship in contexts of authoritarian capitalism such as China, where the state not only uses its control of economic entities to pursue social goals but also plays a key role in CEOs’ careers. We theorize how corporate philanthropy among state-controlled firms increases the CEO’s likelihood of receiving career benefits from the state in the form of outside directorships. Outside directorships represent an important form (...) of social capital in the Chinese context, and corporate philanthropy is an important mechanism through which social capital can be acquired. In addition, we theorize how two factors—the degree of state ownership and the number of independent directors on the CEO’s board—moderate this relationship. Analyzing a 12-year panel of state-controlled, publicly-listed firms in China comprising 6,594 firm-year observations, we find general support for our ideas. In so doing, we contribute to scholarship on the business–society relationship and corporate governance in the context of authoritarian capitalism. (shrink)

Leader wisdom is crucial to effective organizations because it is one of the greatest human capacities. However, understanding what factors impact leader wisdom is still developing. In this paper, we rely on a fear-based view of wisdom and empirically examine through a quantitative study of 249 leaders if one of the primary regulators of human behavior (fear) is positively related to wisdom. We are specifically focused on the role of fear of failure and wisdom. Additionally, because we recognize that fear (...) has a negative connotation and has a tipping point regarding leader effectiveness, we propose that psychological empowerment serves as a coping mechanism for fear and mediates the relationship between fear of failure and wisdom. Through structural equation modeling (SEM), we demonstrate that fear of failure does positively impact leader wisdom and that this relationship is mediated by psychological empowerment. This study contributes to the literature by advancing the fear-based view of wisdom which unites two of the most powerful concepts in human history: fear and wisdom. Although wisdom has a resurgence of interest in business literature, fear is not given much attention. By theoretically and empirically linking fear of failure with wisdom, we shed light on how fear is an important motivating mechanism. The study also contributes to practice by suggesting leaders should fear failure and avoid minimizing fears to be wise. (shrink)

This study explores the impact of CEO ability on corporate environmental sustainability information disclosure. We take samples from Chinese A-share listed companies from 2010 to 2019 and use the ordinary least squares as a baseline regression model to check the relationship between CEO ability and corporate environmental sustainability information disclosure. Our findings are robust to different corporate environmental sustainability information disclosure measures and CEO ability. We found a positive association between CEO ability and corporate environmental sustainability information disclosure; thus, firms (...) with a more able CEO are more likely to disclose more corporate environmental sustainability information. Our results also found a significant negative interaction coefficient between CEO ability and CEO career concerns. As the CEO grows older, his/her ability decreases; therefore, corporate environmental sustainability information disclosure reduces. Furthermore, we document that a female CEO strengthens the relationship between CEO ability and corporate environmental sustainability information disclosure. The study results are important for understanding corporate environmental responsibility development and implementation, particularly in China. (shrink)

Informal institutions are found to shape the behaviors of economic organizations within the business world by creating localized social norms and moral commitments. However, the existing literature pays greater attention to the financial consequences of such institutions, and little is known about their environmental impacts, especially in the context of transition economies. By linking institutional theory with environmental strategy literature, in this study, we develop a theoretical framework and empirically test how social trust, one of the dimensions of informal institutions, (...) influences corporate environmental responsibility. Using a longitudinal data set of Chinese listed firms from 2006 to 2015, we find support that firms located in regions with a higher level of social trust engage in more environmental responsibility activities. We also show that this effect is more pronounced when local environmental protests are fewer and information transparency is worse. Our findings highlight the importance of social trust in environmental governance and provide evidence of how it serves as a substitute for formal environmental institutions in transition economies. (shrink)

This study examines the influence of firm governance structures (board size, independence, CEO duality, director share ownership, and board meeting frequency) in relation to carbon emission disclosures by high-polluting Chinses firms. In addition, the study further examined the moderating role of earnings management on this relationship. In line with stakeholder and agency theories, our study identified that the large and independent boards exercise and demonstrate a higher degree of carbon emission disclosures. However, CEO duality and director share ownership are associated (...) with lower carbon emission disclosures. In addition, the study determined that higher earnings management results in a reduced level of carbon emission disclosures. Lastly, a firm earnings management strategy moderates the relationship between a firm governance structure and its carbon emission disclosures. The findings from the study are consistent with multiple econometric models and variables. The findings from the study contribute to the literature in the areas of firm corporate governance and carbon emission disclosures by documenting the moderating role of earnings management, which is not evident in previous studies; provide an enhanced perspective on the implications for firms, regulators, policymakers, and stakeholders who have an interest in reducing carbon emissions and advancing climate change mitigation goals in line with UN's Sustainable Development Goal (SDG) 7: climate action, and zero emissions goal by 2050. (shrink)

Building on agency and resource-based view theories, this study investigates the level of environmental disclosure (ED) practices of family versus non-family firms and explores the moderating role of board gender diversity. We test our hypotheses on a 3-year (2018–2020) panel data sample comprising 324 observations of Italian small- and medium-sized enterprises traded on the Euronext Growth Milan. Findings show that, compared to non-family firms, companies with a family firm status are characterized by lower levels of ED. Gender diversity on the (...) board, however, moderates this relationship, reducing this gap, to the extent that the family firm status is associated with higher ED when the number of women directors is high enough to constitute a critical mass. We consequently contribute to the studies on family business, corporate governance, and corporate social responsibility. (shrink)

Business Ethics, the Environment &Responsibility, Volume 31, Issue 4, Page 1040-1052, October 2022.

Business Ethics, the Environment &Responsibility, Volume 31, Issue 3, Page 718-740, July 2022.

Abstract‘Monkey see, monkey do’ is an old saying referring to imitating another's actions without necessarily understanding the underlying motivations or being concerned about consequences, such as propagating harmful behaviors. This study examines the likelihood of firms imitating and proliferating others’ unethical, irresponsible practices thereby exacerbating harmful effects among even more firms; in doing so, irresponsible contagions can rapidly spread more broadly, negatively affecting even more consumers. Building upon rivalry- and information-based imitation theories, we examine if harmful behaviors of others, in (...) combination with misbehavior of referent firms, influences the likelihood of a firm to engage in irresponsible consumer-related practices. After examining 25,824 firm-year observations over 12 years, our findings suggest that imitation of harmful product-related behavior occurs; with size an important factor related to proliferation of harmful behaviors. Testing the model against a holdout sample finds 94% accuracy. Implications for scholars, managers, and policy makers are explored. (shrink)

We investigate the impact of women shareholders on corporate social responsibility (CSR) and how they interact with women directors to exert a greater influence on CSR activities. Little is known about how women's ownership can enhance their roles in CSR practices. Based on data from Omani-listed firms during 2016–2020 and using CSR budgeting and spending as proxies for CSR activities, firms with women shareholders allocate more CSR budgeting and spend more money on CSR activities. However, we also find that women (...) directors can only affect CSR budgeting and spending if their representation on the board is increased. Furthermore, we find that firms with women shareholders and directors have higher CSR budgeting and spending. Further analysis reveals that women shareholders are more likely to spend money on CSR activities within the budgeted amount and are less likely to be associated with gaps between CSR budgeting and spending. This analysis also shows that the type of ownership (family versus non-family) influences women shareholders' effects on CSR budgeting and spending. Our empirical findings provide critical insights into how woman shareholders influence CSR actions. (shrink)