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)

Cross-sector partnerships are currently praised as capitalism’s key governance instrument to address development challenges. Although some concern has been raised about the effectiveness of such partnerships, little is known about their actual impact. Often it is assumed that partnership outputs transform straightforwardly into societal impact such as poverty alleviation. This article problematizes this assumption. Employing a critical micro-level study, which draws on a qualitative case study of a nongovernmental organization (NGO)–business partnership in Ghana, we examine how outputs provided by a (...) partnership are put to use and perceived as beneficial from the point of view of its beneficiaries. The findings show that the partnership results in what we term “competences without agency” since it provides new resources and knowledge to the beneficiaries but fails to generate the conditions for these to be transformed into significant changes in their lives. Drawing on the concept of empowerment, we propose a new framework, which conceptualizes “impact as empowerment” and highlights currently unrecognized dynamics, which contribute to shaping the ability of a partnership to serve as a development agent. (shrink)

In both their external and internal communications, organizations tend to present diversity management approaches and corporate social responsibility initiatives as a kind of morally ‘good’ organizational practice. With regard to the treatment of employees, both concepts largely assume equality to be an indicator of organizational ‘goodness’, e.g. in terms of equal treatment, or affording equal opportunities. Additionally, research on this issue predominantly refers to prescriptive and imperative moralities that address the initiatives themselves, and values them morally. Schopenhauer opposes these moralities (...) by conceptualizing morality as exclusively being based on the incentives of acting instead of the actions themselves. He identifies egoism, compassion, and malice as the sole incentives for every human action, whereby only those actions solely motivated by compassion can be ascribed genuine moral worth. In this context, this article shows that from a Schopenhauerian perspective, CSR and DM initiatives only have a genuine moral worth in so far as the individuals who have initiated or supported their implementation were exclusively motivated by compassion. Stressing the narrative of a business case, if utilized as a façade for true compassion that attaches economic legitimacy to these initiatives, does not necessarily harm their moral worth. The approach and the findings developed in this paper contribute to the discourse on the ethical behavior of organizations, as well as to the discourse on CSR and DM. (shrink)

Using a national survey of US consumers, this study demonstrates the positive effects of corporate social responsibility communication factors on consumers’ CSR knowledge, trust, and perceptions of corporate reputation. The study also examines the role of a stakeholder-specific factor of consumer–company identification in the process of CSR communication. The findings suggest that the positive effects of CSR informativeness are enduring and independent of consumers’ identification levels with a company, whereas the positive consequences of the personal relevance, transparency, and factual tone (...) of CSR communication intensify as the identification levels increase. Although CSR communication in which a self-promotional tone is adopted has a negative relationship with consumer trust and corporate reputation, such negative effects are not evident among consumers with very high identification levels with a company. Such CSR communication in fact improves consumers’ CSR knowledge and, in turn, has a positive effect on corporate reputation. (shrink)

This article explores the concept of cultural competence and its relevance as an organizational resource in ethical disputes. Empirically, we aim to reveal the cultural competences that a global forest industry company, StoraEnso, and a global environmental nongovernmental organization (NGO), Greenpeace, utilized in forestry conflicts during 1985–2001. Our study is based on data which were collected from corporate and NGO communication outlets and which have gone through a detailed discourse-semiotic analysis. Our reinterpretation of the discourses identified three cultural competences: (1) (...) the ability to understand changing consumer preferences and values, (2) the ability to utilize culturally determined positions of expertise, and (3) the ability to maintain trust and credibility in the community through open communicative practices. We argue that these competences are relevant in industry–NGO disputes for both parties. However, maintaining them all simultaneously is a difficult task, since various discourses which aim at upholding them can sometimes have contradictory effects. (shrink)

Companies often benefit from others’ attributions of moral conviction for prosocial behavior, for example, attributions that a company has a sincere moral desire to improve the environment when behaving sustainably. Across four studies, we explored how organizations’ changing resource positions influenced people’s attributions for the motivations underlying prosocial organizational behaviors. Observers attributed less moral conviction following prosocial behavior when they believed an organization was losing economic resources. This effect was primarily a “penalty” assessed against organizations that were losing resources, as (...) opposed to a “reward” given to organizations gaining resources. Finally, we found that this effect occurred because people perceive organizations that are losing resources as more situationally constrained, leading them to attribute less dispositional moral conviction. We discuss theoretical and practical implications stemming from how changes in resource access can lead people to be more skeptical of organizations’ motivations following prosocial behavior. (shrink)

In this paper, we examined how companies are employing new media to engage in dialogue with their stakeholders about corporate social responsibility -related matters. Through a qualitative theory-building study conducted in three stages over a period of 2 years, we discovered that corporations with reputations for CSR have built virtual spaces for dialogue about CSR, but that these spaces remain empty of dialogue. Our theory-building model highlights how the mix of four dialogue processes may allow companies to create open dialogue (...) about CSR initiatives and avoid leaving these spaces empty. Contributions for CSR studies are discussed. (shrink)

Corporate social responsibility is a complex discipline that not only demands responsible behavior in production processes but also includes the concepts of communicative transparency and dialogue. Stakeholder dialogue is therefore expected to be an integrated part of the CSR strategy :323–338, 2006). However, only few studies have addressed the practice of CSR stakeholder dialogue and the challenges related hereto. This article adopts a postmodern perspective on CSR stakeholder dialogue. Based on a comprehensive single case study on stakeholder dialogue in a (...) global dairy company, we focus on the complexity of CSR dialogue with multiple stakeholders. Drawing on a critical reflexive methodology :1265–1281, 2007), we develop the research question: How is CSR multi-stakeholder dialogue practiced, experienced, and articulated in an empirical context? The purpose is to understand the underlying assumptions, expectations, and principles guiding CSR multi-stakeholder dialogue in an empirical setting, as we focus on how key stakeholders articulate and anticipate the values of stakeholder dialogue and how the actual stakeholder dialogues are enacted. The findings of the study differ significantly from the ideals of transparent and agenda-free stakeholder dialogue. Rather, the study shows an overall tension between ideal and practice, supporting the progressive importance of the dialogue process in itself as an essential part of the end goal. The implication of this is a growing pressure on creating transparency about the positioning and negotiation of roles throughout the dialogue process. (shrink)

This paper presents a study that identifies a stakeholder-defined concept of Corporate Responsibility (CR) in the context of a UK financial service organisation in the immediate pre-credit crunch era. From qualitative analysis of interviews and focus groups with employees and customers, we identify, in a wide-ranging stakeholder-defined concept of CR, six themes that together imply two necessary conditions for a firm to be regarded as responsible—both corporate actions and character must be consonant with CR. This provides both empirical support for (...) a notable, recent theoretical contribution by Godfrey (in Acad Manag Rev 30:777–798, 2005 ) and novel lessons for reputation management practice. (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)

This article develops an integrative perspective on corporate responsibility by synthesising competing perspectives on the responsibility of the corporation at the organisational and societal levels of analysis. We review three major corporate responsibility perspectives, which we refer to as economic, critical, and politico-ethical. We analyse the major potential uses and pitfalls of the perspectives, and integrate the debate on these two levels. Our synthesis concludes that when a society has a robust division of moral labour in place, the responsibility of (...) a corporation may be economic without jeopardising democracy and sustainability. Moreover, the economic role of corporations neither signifies the absence of deliberative democratic mechanisms nor business practices extending beyond compliance. The study underscores the value of integrating different perspectives and multiple levels of analysis to present comprehensive descriptions and prescriptions of the responsibility phenomenon. (shrink)

Although the possibility that a firm’s stakeholders may take damaging measures against it in response to its activities has been an underlying assumption of stakeholder theory from inception, the conditions that predispose stakeholders to act against firms remain largely unexplored in the literature. Based on work in equity theory, expectancy theory, and resource dependence theory, we present and test hypotheses concerning stakeholders’ propensities to impose sanctions upon—or to support—firms. Using a vignette-based experiment, we found strong confirmation of the criticality of (...) fairness in the firm–stakeholder relationship: stakeholder equity perceptions were unequivocally associated with the proclivity to sanction the firm, or to engage in prosocial behaviours of benefit to it. Stakeholder expectancy perceptions and resource dependence were related to only certain forms of stakeholder action, indicating that researchers should take care to differentiate between types of stakeholder response when investigating questions surrounding stakeholder mobilization. Our results also suggest specific avenues for stakeholder dialogue that could help firms mitigate the likelihood of stakeholders taking damaging action against them. (shrink)

The multi-disciplinary interest in social responsibility on the part of individuals and organizations over the past 30 years has generated several descriptors of corporate social responsibility and employee social responsibility. These descriptors focus largely on socially responsible behavior and, in some cases, on socially responsible identity. Very few authors have combined the two concepts in researching social responsibility. This situation can lead to an oversimplification of the concept of CSR, thereby impeding the examination of congruence between employees and organizations with (...) regard to social responsibility. In this article, we connect two dimensions of social responsibility—identity and behavior—to build a Social Responsibility Matrix consisting of four patterns for classifying the social responsibility of employees and employers: Low Social Responsibility, Identity-based Social Responsibility, Behavior-based Social Responsibility, and Entwined Social Responsibility. The positioning of employers and employees on the same matrix is vital for assessing the level of congruence between employers and employees with regard to social responsibility and for discussing the possible outcomes for both parties. These identity and behavior-based patterns, determinants, and levels of congruence connecting employees and employers form the foundation for the multi-dimensional, dynamic ESR–CSR Congruence Model, as exemplified in a case study. This contribution enhances the existing literature and models of CSR, in addition to improving the understanding of employee–employer congruence, thereby broadening the array of possibilities for achieving positive organizational outcomes based on CSR. (shrink)

Research on corporate social responsibility (CSR) has tended to focus on external stakeholders and outcomes, revealing little about internal effects that might also help explain CSR-firm performance linkages and the impact that corporate marketing strategies can have on internal stakeholders such as employees. The two studies ( N = 1,116 and N = 2,422) presented in this article draw on theory from both corporate marketing and organizational behavior (OB) disciplines to test the general proposition that employee trust partially mediates the (...) relationship between CSR and employee attitudinal and behavioral outcomes. Both studies provide evidence in support of these general relationships. Theoretical and practical implications of these findings are discussed in the context of CSR and corporate marketing research. (shrink)

Although theoretical underpinnings of stakeholder dialog (SD) have been extensively discussed in the extant literature, there is a lack of empirical studies presenting evidence on the SD initiatives undertaken by firms. In this article, we provide information about 294 SD initiatives collected through a content analysis of the sustainability reports published by large firms in Germany, Italy, and the U. S. In addition to a country-based description of the different forms, stakeholder categories, and topics of the SD initiatives, we explore (...) the relationship between SD and characteristics of national business systems. Overall, we find firms undertake few SD initiatives, using low-involvement forms of dialog, and focusing on one category of stakeholders per initiative. Results suggest that the explicit approach to corporate social responsibility (CSR) favors the quantity of SD initiatives, but neglects the importance of the level of involvement and diversity of stakeholders participating at the dialog. Finally, we find public policies on CSR have a substantial influence on SD in national business systems with an implicit approach to CSR. Public policies based on a shared discussion involving multiple social actors encourage SD initiatives that use different forms of dialog and are characterized by high level of involvement. Our findings offer contributions to the ongoing debate about the effectiveness of SD and its relationship with CSR. (shrink)

Corporate social responsibility (CSR) has emerged as an effective way for firms to create favorable attitudes among consumers. Although prior research has addressed the direct influence of proactive and reactive CSR on consumer responses, this research hypothesized that consumers’ perceived organizational motives (i.e., attributions) will mediate this relationship. It was also hypothesized that the source of information and location of CSR initiative will affect the motives consumers assign to a firms’ engagement in the initiative. Two experiments were conducted to test (...) these hypotheses. The results of Study 1 indicate that the nature of a CSR initiative influences consumer attribution effects and that these attributions act as mediators in helping to explain consumers’ responses to CSR. Study 2 suggests that the source of the CSR message moderates the effect of CSR on consumer attributions. The mediating influence of the attributions as well as the importance of information source suggests that proper communication of CSR can be a viable way to inculcate positive corporate associations and purchase intentions. (shrink)

Although most consumers are positive about socially responsible companies, in order to benefit from CSR efforts, effective and clear CSR communication is important. However, due to the constantly rising profusion of eco-labels, based on either own claims from the organization or claims made by an external third party, consumers may encounter difficulties in identifying truly responsible firms, which could result in less effective CSR initiatives, even for those responsible firms. Therefore, building on attribution theory, this study seeks to identify how (...) uncertified internal CSR claims and external third-party CSR labels should be used in order to deter greenwashing and increase positive consumer evaluations. Within a 3 × 2 design, respondents are exposed to different coffee product packages measuring their attitude toward the brand, corporate credibility, purchase intention, and scent perception, as well as perceived attributional CSR motives. Overall, findings indicate that especially an external CSR label affects consumer responses toward the firm. Moreover, perceived CSR motives serve as a mediator between an external CSR label and corporate credibility and brand attitude, respectively. These findings warrant further consideration of introducing an external multilevel rating systems by governmental law. (shrink)

This paper examines the roles of dialogue in the process of communication with stakeholders. The conceptual frameworks of corporate social responsibility (CSR) and stakeholder relationships frequently present the initiation of a dialogue with stakeholders as a way for an organization to respond to criticisms of its social and environmental policies and actions. The paper discusses dialogue in the stakeholder and CSR literature. This is followed by the analysis of in-depth semi-structured interviews in the empirical section. Theoretical discussion and empirical examples (...) demonstrate that the role of stakeholder dialogue in implementing CSR strategy is crucial in many ways. The case examples taken from the interviews with the heads of two large companies and two non-governmental organizations illustrate the practical difficulties that may be encountered in applying the principle and practice of dialogue to the implementation of CSR programs in the real world. (shrink)

We critically assess integrative social contracts theory (ISCT) and show that the concept particularly lacks of moral justification of substantive hypernorms. By drawing on Habermasian philosophy, in particular discourse ethics and its recent application in the theory of deliberative democracy , we further advance ISCT and show that social contracting in business ethics requires a well-justified procedural rather than a substantive focus for managing stakeholder relations. We also replace the monological concept of hypothetical thought experiments in ISCT by a concept (...) of practical discourse to better govern business activities on the macro-level of organizational actors such as firms, governments, and NGOs. (shrink)

Recent academic articles point to an increased vagueness and overlap in concepts related to business ethics and corporate responsibility. Further, the perception of these notions can differ in the smallbusiness world from the original academic definitions. This article focuses on the cognition of small-business owner-managers. Given the impact of small-business owner-managers on their ventures, corporate responsibility and ethical issues can take a different route in SMEs. The small-business owner-manager is able to shape the corporate culture and to enact values other (...) than profit. Adopting a cognitive perspective, we have identified how the small-business owner-manager makes sense of notions linked to corporate social responsibility (CSR) and business ethics. The concept of sensemaking has recently been applied to CSR (Basu and Pallazzo, 2008; Cramer et al., 2006). Applying a cognitive perspective to small-business owners may help in explaining specific phenomena found within smallbusiness ownership. For this research, the Repertory Grid Technique (RGT) is used, a method that has not previously been widely applied in the business and society field. Our findings to an extent invalidate the confusion in terminology found in the academic literature. Smallbusiness owner-managers, pragmatically and rather clearly, differentiate among the various concepts related to corporate responsibility and business ethics but, at the same time, they recognise the interrelationships and interdependencies of these concepts. These findings contribute to a better understanding of how small-business owners think and integrate corporate responsibility and ethical issues into their decisionmaking. (shrink)

By using social media, corporations can communicate about their corporate social responsibility (CSR) to the public without having to pass through the gatekeeping function of the news media. However, to what extent can corporations influence the public’s evaluation of their CSR activities with social media activities and if the legacy news media still act as the primary agenda setters when it comes to corporate reputation have not yet been thoroughly analyzed in a digitized media environment. This study addressed this research (...) gap by looking at the effect of CSR communication through Facebook and news media coverage of CSR on corporate reputation in Switzerland. The results of this longitudinal study show that the salience and tone of news media coverage of CSR were positively related to corporate reputation, even though the news media coverage about CSR was predominantly negative. Thus, reputation was still strengthened even in the face of negative publicity. No effect of CSR communication through Facebook on corporate reputation was found. The results suggest that legacy news media still were influential in determining how the public evaluates corporations in the digital age. (shrink)

Recently, calls have grown louder for more stakeholder democracy that is, letting stakeholders participate in the process of organizing, decision‐making, and governance in corporations, especially in the area of Corporate Social Responsibility (CSR) activities. Despite the relevance of the subject, the impact of customer involvement in CSR on their company‐related attitudes and behaviors still represents a major research void. The paper at hand develops a conceptual framework of consumer involvement in CSR based on the existing literature, theories of stakeholder democracy, (...) and organizational boundaries as well as drawing from the qualitative focus group interviews (N = 24). The framework is tested on a large scale, two‐time point field‐experimental study (N = 3,397). More specifically, consumer reactions to three degrees of customer involvement (i.e., information, feedback, and dialogue) are tested in two different CSR domains (i.e., company‐internal business process vs. company‐external philanthropic CSR). Results indicate that the customer involvement in CSR has a more beneficial effect in terms of strengthening customer outcomes in CSR domains that directly affect external stakeholders of the company (i.e., philanthropic CSR) than in domains that mainly concern company‐internal stakeholders (i.e., business process CSR). (shrink)