The aim of this study is to analyse how secondary stakeholders influence managerial decision-making on Corporate Social Responsibility disclosure. Based on stakeholder salience theory, we empirically investigate whether differences in environmental disclosure among companies are systematically related to differences in the level of power, urgency and legitimacy of the environmental non-governmental organisations with which these companies are confronted. Using proprietary archival data for an international sample of 199 large companies, our results suggest that differences in environmental disclosures between companies are (...) mainly associated with differences between their environmental stakeholders’ legitimacy. The effects of power and urgency are of an indirect nature, as they are mediated by legitimacy. This study improves our understanding of CSR disclosure by demonstrating that, next to the well-documented effect of company characteristics, stakeholder characteristics are also important. Besides, it provides scarce empirical evidence that not only primary stakeholders, but also secondary stakeholders are influential with regards to management decision-making. And more specifically, it offers insight into why some stakeholder groups are better able to influence disclosure decisions than other. The results also have important practical implications for managers of both environmental NGOs and large companies. For managers of environmental NGOs the results provide evidence of the most successful tactics for having their environmental information demands satisfied by companies. For company management the results provide insights into the most important stakeholder characteristics, on the basis of which they may develop strategies for proactively disclosing environmental information. (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)

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)

This study examines the variations in corporate social orientations across developed and developing countries in the context of a legitimacy threat. Conceptualizing CSO as signals, the author develops and validates a seven-code index of CSO that identifies executive orientations toward multiple stakeholders. Using this index on CEO shareholder letters from the United States, Germany, and India, the author finds that firms signal a multi-stakeholder image toward employees, communities, and environment during good times to enhance their social license to operate, and (...) yet such signals are not carried through during the threat period. This disconnect in signaling in the wake of a legitimacy threat is indicative of decoupling in corporate orientations and exposes the multi-dimensionality of the CSO concept. By adding a cross-national and temporal dimension, this research contributes toward better understanding the complexity behind CSOs and opens new areas for future research. (shrink)

Since its inception in 2006, the United Nations-backed Principles for Responsible Investment have grown to over 1300 signatories representing over $45 trillion. This growth is not slowing down. In this paper, we argue that there is a set of attributes which make the PRI salient as a stakeholder and its claim to sign the six PRI important to institutional investors. We use Mitchell et al.’s theoretical framework of stakeholder salience, as extended by Gifford. We use as evidence confidential data from (...) the annual survey of signatories carried out by the PRI in a 5-year period between 2007 and 2011. The findings highlight pragmatic and organizational legitimacy, normative and utilitarian power, and management values as the attributes that contribute most to the salience of the PRI as a stakeholder. (shrink)

This study examines corporate stakeholder orientation across industries and over time prior to the introduction of mandatory CSR. We argue that CSO is a legitimacy signal consciously employed by firms to demonstrate their shareholder and specific non-shareholder orientations in the midst of institutional pressures emerging from country and industry contexts. Using a 7-code index of CSO on CEO–shareholder communications from India, we find that in general large firms in India exhibit a pre-dominant, significant and rising trend of pro-shareholder orientation in (...) the six-year period immediately preceding the CSR law. Yet, we uncover significant industry differences in CSO potentially driven by four key factors: the degree of competitive dynamics, nature of products and services, extent of negative externalities and social activism, and exposure to international markets. Our findings support the view that while some minimum threshold of regulatory intervention is required to balance the interests of business with society, legislation raises questions in relation to the usefulness of a uniform one-size-fits-all CSR across all industries. (shrink)

The aim of this research is to investigate the web of business-stakeholder relationships emerging from first integrated reports. Drawn from the stakeholder salience theory, the analysis focuses on some factors that may cause specific stakeholders to be crucial for some organizations and their ability to create value over time. More precisely, findings highlight the importance of industry membership, while entities’ nationality seems not to be a differentiating element. This study contributes to the corporate disclosure literature by analyzing an emerging reporting (...) tool, the integrated report, and demonstrating that the link between some business characteristics and stakeholder salience seems fundamental for the representation of the impact of corporate social and environmental responsibilities on the economic performance. From a practical point of view, the impact of industry membership on corporate disclosures encourages the drafting of differentiated reporting standards across sectors, in order to improve comparability, materiality, and reliability of information. (shrink)