Despite the importance of ethical leadership, the impacts of its different facets on firm-level performance are unclear. Drawing on the resource-based view of the firm and the group engagement model, we propose that ethical leadership consisting of leader humane orientation, leader responsibility and sustainability orientation and leader moderation orientation are beneficial to firm performance, and leader justice orientation plays moderating roles. We empirically tested this theoretical framework employing multi-source survey data collected from 264 Chinese firms. The findings reveal that both (...) leader humane orientation and leader responsibility and sustainability orientation have positive influences on both firm financial and social performance, while leader moderation orientation only has positive influence on firm financial performance. In addition, leader justice orientation positively moderates the relationship between leader humane orientation and leader responsibility and sustainability orientation and financial performance as well as the relationship between leader moderation orientation and social performance. These findings provide theoretical and practical implications for understanding how different facets of ethical leadership jointly function to influence firm performance. (shrink)

Taking advantage of economic opportunities has led to numerous conflicts between society and business in various geographies of the world. Companies have developed social responsibility programs to prevent and manage these types of problems. However, some authors comment that these programs lack a strategic vision. Starting with the Working with People model, created for the field of rural development planning, this paper proposes a methodology to prevent the generation of social conflicts from business strategy: the territorial dimension. The proposal emphasizes (...) that local development support prevents the generation of social conflicts. Finally, an experience in Peru, a country that has been characterized in recent years by high economic growth and also by the presence of social conflicts that have stopped entrepreneurship is analyzed. (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 study investigates the influences of the strategy tripod, an established concept in the international business literature, on a corporate social responsibility -based differentiation strategy for export firms. This strategy is conceived as consisting of product-level and firm-level CSR. Using a sample of 195 Brazilian export firms, the authors find that innovation capabilities, international market exposure, and institutional pressures significantly influence product-level CSR; however, the latter two factors influence firm-level CSR only through their mediating effects on product-level CSR. This study (...) contributes to the existing CSR and IB literature in three ways. First, it integrates and systematizes the factors influencing CSR-based strategies into the three categories represented by the legs of the strategy tripod to help elucidate the previous research on the factors that drive CSR. Second, it suggests that exporters’ CSR strategies can be affected by social and environmental institutions based outside their home countries. Third, this study contributes to filling an important empirical gap in the research on CSR by focusing on export ventures from emerging countries. (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)

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)

We conceptualise CSR communication as a process of reciprocal influence between organisations and their audiences. We use an illustrative case study in the form of a conflict between firms and a powerful stakeholder which is played out in a series of 20 press releases over a 2-month period to develop a framework of analysis based on insights from linguistics. It focuses on three aspects of dialogism, namely (i) turn-taking (co-operating in a conversation by responding to the other party), (ii) inter-party (...) moves (the nature and type of interaction characterising a turn, i.e. denial, apology or excuse) and (iii) intertextuality (the intensity and quality of verbal interaction between the parties). We address the question: What is the nature and type of verbal interactions between the parties? First we examine (a) whether the parties verbally interact and then (b) whether the parties listen to each other. We find evidence of dialogism suggesting that CSR communication is an interactive process which has to be understood as a function of the power relations between a firm and a specific stakeholder. Also, we find evidence of intertextuality in press releases by six firms which engage in verbal interaction with the stakeholder. We interpret this as linguistic evidence of isomorphic processes relating to CSR practices resulting from the pressure exerted by a powerful stakeholder. The lack of response by ten firms that fail to issue press releases suggests a strategy of ‘watch-and-wait’ with respect to the outcome of the conflict. (shrink)