Today''s headlines suggest that economic criteria alone is the basis for business decision-making. This paper argues that while profitability is a legitimate end of business, it must be moderated by ethical considerations. But can business be both successfuland ethical? Practical examples highlight individuals who chose profitability over ethical responsibility and those who chose and continue to choose both. The authors propose that there is an ethical person profile. Corporate managers can resolve the profits vs ethics dilemma by modeling ethical behavior.

The purpose of this paper is to develop a framework for analysing managers’ attitudes toward moral issues in stakeholder relations, and to operationalise the developed framework by defining statements to be used as empirical measures in survey research. The research question, how can moral issues in business be examined with the stakeholder approach, is answered by paying attention to both theoretical and empirical viewpoints. The paper reveals that by analysing a company’s stakeholder relations, we can discover the important moral issues (...) in business. To validate the framework developed and the empirical measures which result, the development process is described in detail. The argument is that making the development process visible is an important task in validating empirical measures in survey research. As a result of the research process, a total of 50 moral issues in eight stakeholder relations are identified, and operationalised with 58 itemised statements. The final conclusion is that the empirical measures developed in this paper are suitable for measuring moral issues in stakeholder relations, and that they can later be used in analysing real life managers’ perceptions of moral issues in stakeholder relations. (shrink)

Various authors advocate consideration of stakeholder value concerns in organizational decision making. Brenner and Cochran (1990, 1991) propose a stakeholder theory of the firm which contains several propositions and a stakeholder value matrix. In order to begin any stakeholder rnodel validation, an approach is needed to measure stakeholder value and influence weights. We propose a multicriteria decision modeling approach, utilizing the analytic hierarchy process, to estimate stakeholder value matrix weights. This approach is illustrated using a simplified example and suggestions are (...) made regarding the process needed to begin to validate the stakeholder theory of the firm. (shrink)

This paper explores by means of content analysis the extent to which the Finnish biggest companies have adapted socially responsible reporting practices. The research focuses on Human Resource (HR) reporting and covers corporate annual reports. The criteria has been set on the basis of the analysis of the documents published at the European level in the context of corporate social responsibility (CSR), paying special attention to the European Council appeal on CSR in March 2000. As CSR is a relatively new (...) concept in Finland, the paper also contributes to the discussion on interface between HR reporting (especially as based on measurements such as Human Resource Accounting and Intellectual Capital schools) and corporate social reporting practices. The results of the content analysis indicate that social reporting practices are still at an early stage of development in Finland. The most reported theme was ‘training and staff development’. A positive sign was that the majority also disclosed themes ‘participation and staff involvement’ and ‘employee health and well-being’. Furthermore, nearly one-third made references to their work atmosphere or job satisfaction survey. However, disclosures lacked overall consistency and comparability with each other and especially quantitative indicators were disclosed by few. Further concern was lack of information related to the theme equal opportunities and going beyond a sheer disclosure of age or gender structure. The other issues rarely disclosed were those related to employee work–life balance and integration of disadvantaged groups in the labour markets. (shrink)

This paper presents a roadmap of Finnish companies adopting and managing corporate social responsibility (CSR). It discusses the companies' views on CSR and highlights the practices that Finnish companies have adopted or are currently adopting. It also presents a framework that outlines the CSR processes and management prospects. Results showed that Finnish companies are progressively managing CSR. This newly revived thinking about social responsibility is viewed as an issue traced back from Finland's history of industrial development. There is no general (...) definition of CSR; however, various concepts are connoted into it. Driven by several factors, CSR is developing gradually as indicated by the positive responses and initiatives of the companies. CSR management and practices towards employees, suppliers, community and customers are well defined locally based generally on established socially responsible behavior which could be articulated by laws and regulations, corporate values and business ethics. However, managing CSR with a global scope, problems such as; lack of information and structured management system, different views and interpretations, supply chain complexities, overlap with environmental issues, etc. often lead some companies to manage CSR haphazardly. Views and management of CSR are also influenced by some distinct Finnish cultural attributes. An initial conceptual framework for CSR is drawn reflecting the current practices and prospects for management strategies. Such framework can be used in organizing and streamlining CSR elements for effective management approaches and measuring of performance. It could be expected that in due time, the efforts of the companies will become more evident, organized and systematically managed. (shrink)

Although business and society scholars have sought to demonstrate that corporate social performance (CSP) leads to corporate financial performance (CFP), a complete model of the pathway from CSP to CFP has not been substantiated. One suggestion is that certain indicators of CSP are noticed by stakeholders, who then act in ways that ultimately affect the firm's CFP. The present study focused on the first step in this path: identifying the factors that initially lead a stakeholder group to target a particular (...) firm. Existing theory from the literature on the environmental movement, stakeholder theory, and CSP fostered the development of eight propositions regarding corporate environmental performance. Case studies of five environmental non-governmental organizations (ENGOs) are used to address the propositions. The case studies also supply additional insight into ENGO targeting of particular firms, unrelated to the propositions, thereby facilitating the development of a theoretical model. (shrink)

In the present study, I sought to more fully understand stakeholder organizations’ strategies for influencing business firms. I conducted interviews with 28 representatives of four environmental non-governmental organizations (ENGOs): Natural Resources Defense Council (NRDC), Greenpeace, Environmental Defense (ED), and Union of Concerned Scientists (UCS). Qualitative methods were used to analyze this data, and additional data in the form of reviews of websites and other documents was conducted when provided by interviewees or needed to more fully comprehend interviewee’s comments. Six propositions (...) derived from Frooman (1999) formed the basis for the initial data analysis; all six propositions were supported to some extent. Perhaps more interestingly, the data revealed that Frooman’s model is too parsimonious to adequately describe stakeholder influence strategies and related alliances, necessitating the development of an alternative theoretical model grounded in the data collected. (shrink)

In this article, we document the growing influence of non-governmental organizations (NGOs) in the realm of socially responsible investing (SRI). Drawing from ethical and economic perspectives on stakeholder management and agency theory, we develop a framework to understand how and when NGOs will be most influential in shaping the ethical and social responsibility orientations of business using the emergence of SRI as the primary influencing vehicle. We find that NGOs have opportunities to influence corporate conduct via direct, indirect, and interactive (...) influences on the investment community, and that the overall influence of NGOs as major actors in socially responsible investment is growing, with attendant consequences for corporate strategy, governance, and social performance. (shrink)

This article presents a critical examination of the process of stakeholder dialogue in the Corporate Social Responsibility (CSR) field. It utilises data from a three-year research project into stakeholder dialogue processes to discuss three central themes: first, what is meant by the term ‘dialogue’, both from a theoretical perspective and from its practical application within CSR; second, the challenges of creating effective dialogue; and third, measuring and assessing the potential outcomes of dialogue. In providing a critical overview of these themes, (...) the article examines the nature of organisational learning through stakeholder engagement and dialogue. It questions the motives behind engagement in dialogue and highlights some of the potential challenges for organisational learning posed by opting for a stakeholder dialogue approach. It argues that organisations engaging in stakeholder dialogue must have a clear understanding of the implications of undertaking a dialogue process and have a long-term perspective regarding the outcomes and learning likely to emerge from it. While stakeholder dialogue may produce significant results, it is argued, many of these may be difficult to quantify on a short-term basis. (shrink)

This article presents a critical examination of the process of stakeholder dialogue in the Corporate Social Responsibility (CSR) field. It utilises data from a three-year research project into stakeholder dialogue processes to discuss three central themes: first, what is meant by the term ‘dialogue’, both from a theoretical perspective and from its practical application within CSR; second, the challenges of creating effective dialogue; and third, measuring and assessing the potential outcomes of dialogue. In providing a critical overview of these themes, (...) the article examines the nature of organisational learning through stakeholder engagement and dialogue. It questions the motives behind engagement in dialogue and highlights some of the potential challenges for organisational learning posed by opting for a stakeholder dialogue approach. It argues that organisations engaging in stakeholder dialogue must have a clear understanding of the implications of undertaking a dialogue process and have a long-term perspective regarding the outcomes and learning likely to emerge from it. While stakeholder dialogue may produce significant results, it is argued, many of these may be difficult to quantify on a short-term basis. (shrink)