Organizations routinely make choices when addressing conflicting stakes of their stakeholders. As stakeholder theory continues to mature, scholars continue to seek ways to make it more usable, yet proponents continue to debate its legitimacy. Various scholarly attempts to ground stakeholder theory have not narrowed down this debate. We draw from the work of Juergen Habermas to theoretically advance stakeholder theory, and to provide practical examples to illustrate our approach. Specifically, we apply Habermas’ language-pragmatic approach to extend stakeholder theory by advancing (...) seven sets of normative axioms. We conclude that a deliberative approach, with its focus on the conditions of legitimation and deliberative democracy, has the potential to become a cornerstone of stakeholder theory. The need for global stakeholder discourse and its internalization in corporate structures and institutions is exemplified by a multitude of CSR and stakeholder initiatives that have mushroomed in response to global risk scenarios such as climate change, nuclear warfare, or terrorism. Further research may help to build a functioning global governance system in order to provide guidance for management in the 21st century. (shrink)

Over the past four decades, stakeholder research has united a chorus of voices from different disciplines using different terminology for different audiences all related to a seemingly similar topic: those that affect and are affected by business. By juxtaposing a comprehensive review of the early years of stakeholder research against more recent stakeholder research, we identify areas of common convergence as well as emergent scholarship. We develop an organizing framework consisting of three stakeholder-related themes: who or what is a stakeholder; (...) mechanisms underlying stakeholder relationships; and outcomes-oriented stakeholder research. Future research opportunities include: simultaneously examining multiple stakeholders at multiple levels; multiplier effects along the value chain and across geographies; and net impacts. We conclude by identifying how stakeholder research can “move the needle” on important business issues such as: income inequality and CEO pay; human rights and building community inclusion; disease alleviation; and food security in firms’ continuous quest to create value. (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)

This study investigates the connection between corporate social responsibility (CSR) and corporate reputation among the public using fuzzy set qualitative comparative analysis (fsQCA). To examine complex processes underlying the reactions of this influential stakeholder group, hypotheses are drawn from the category diagnosticity approach. Thereby, a psychological model of perceived (im)morality is transferred to the CSR context. In line with these hypotheses, positive/negative CSR activities influence reputation in the expected directions (H1a, b), while the effects of specific configurations of CSR activities (...) reveal an asymmetry suggesting a negativity bias (H2). Further analyses confirm that positive effects require a consistent positive performance regarding prior reputations (H3a) and the aggregated CSR activities of several previous years (H3b, c). Moreover, the relevant patterns vary between industries (H4). The present study thus contributes to CSR research by investigating a powerful but hitherto understudied stakeholder group through a category diagnosticity lens combined with a configurational approach to analysis. (shrink)

This article examines the concept of creating shared value as articulated by Michael Porter and Mark Kramer, in non-Western and Western contexts. We define non-Western contexts as those in so-called “developing” countries and emerging economies, whereas Western ones pertain to dominant thinking in “developed” regions. We frame our research in postcolonial theory and offer an overview of existing critiques of CSV. We conduct a critical discourse analysis of 66 articles to identify how CSV is being cited by authors, and potential (...) underlying power dynamics that affect its relevance for non-Western contexts. Our review exposes increasingly critical views about the paradoxical positioning of CSV as an instrumental concept that can offer “win-win” solutions, particularly from those working in non-Western settings. Western perspectives generally tend to be more supportive of its instrumental nature, but also recognize the increasing complexity of the business-society nexus and stakeholder engagement. We argue that the CSV framework requires further development to maintain credibility and applicability, especially in non-Western domains. (shrink)

Business Ethics: A European Review, EarlyView.

This study constructs a measurement scale for Socially Responsible Consumption in the particular context of Colombia. It uses a mixed qualitative and quantitative methodological approach, beginning with four focus groups and ending with a quantitative validation exercise employing Exploratory Factor Analysis. The result is a Socially Responsible Consumption measurement scale consisting of four dimensions that reflect paradigms found in the existing literature. These are, however, expressed differently in Colombia. In particular, Socially Responsible Consumption involves consumer behavior that favors corporate social (...) responsibility practices and the rational consumption of resources and products while recognizing the importance of maintaining a healthy lifestyle through healthcare. (shrink)

When corporations are accused of unethical behaviour by external actors, executives from those organizations are usually compelled to offer communicative responses to defend their corporate image. To demonstrate the effect that corporate executives'' communicative responses have on third parties'' perception of corporate image, we present the Corporate Communicative Response Model in this paper. Of the five potential communicative responses contained in this model (no response, denial, excuse, justification, and concession), results from our empirical test demonstrate that a concession is the (...) most effective and robust communicative option. (shrink)

Horror stories attached to some recent retailing events concerning Hoover, Ratners and others raise questions about a company’s ethical concern, whether it be part of its marketing strategy or ‘thrust upon it’. If ethics is to have a place in retail strategy that place is better focused around performance at an operational level rather than at the level of promotion or publicity. The author is Professor of Retailing at Nottingham Business School, Nottingham Trent University, Nottingham NG1 4BU, U.K. e‐mail: [email protected].

This study examines the influence of some suspected sources of bias on perceptions of public sector corruption. These sources include dependence on two types of media as information sources about corruption: traditional and social media, positive perception of public employees, and social identification with public employees. Data were collected through a face-to-face survey of the general public in South Korea. The sample comprised 472 respondents evenly dispersed across the country. Through regression analysis, we found that dependence on traditional media—but not (...) social media—significantly increased the perceived level of corruption. However, positive perceptions of and social identification with public employees were negatively associated with it, showing that these factors may skew respondents' perceptions of corruption. The results have implications for practitioners and researchers who design, implement, or evaluate anti-corruption policies, suggesting the need for caution when making use of survey results. (shrink)

There is a growing phenomenon of brand advocacy, where brands pressure a producer country government to take pro-worker actions such as respecting the rights of activists and raising minimum wages. This article examines the potential and limits of brand advocacy by developing a conceptual framework and analysing three recent cases of brand advocacy in Cambodia's garment industry. The study shows that brands' action and influence are shaped by issue salience, mobilization structures, political opportunities/contexts, and resource dependency. This article makes both (...) empirical and theoretical contributions. This is one of the first studies delving into the advocacy role of brands in promoting labour rights and conditions vis-à-vis government. Moreover, the article develops a testable framework specifying the conditions under which brands are likely to respond, act collectively, and influence government for pro-worker change. It also offers novel insights by applying social movement lenses and casting brands as social movement actors. (shrink)

The unethical behavior of a business founder often leads to negative publicity which substantially affects positive corporate image. The amount of negative publicity relating to business founders’ unethical behavior is on the rise in the age of online social media in China. Based on the stimulus–response theory and balance theory, this paper developed a theoretical model to examine how negative publicity about a business founder’s unethical behavior affects corporate image. The proposed model was tested by the partial least squares technique. (...) Results show that perceived severity, publicity intensity and recovery performance are predictors of corporate image: perceived severity has a negative impact on positive corporate image; publicity intensity and recovery performance have positive impacts on positive corporate image; and founder image mediates the relationships between the three predictors and corporate image. Moreover, initial consumer impression of business founders has a positive impact on positive corporate image. (shrink)