Stakeholder Theory: Stakeholder theory: some future possibilities
01 Jan 2010-
About: The article was published on 2010-01-01. It has received 1111 citations till now. The article focuses on the topics: Stakeholder analysis & Stakeholder theory.
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TL;DR: In this article, the authors investigate whether superior performance on corporate social responsibility (CSR) strategies leads to better access to finance and find that firms with better CSR performance face significantly lower capital constraints.
Abstract: We investigate whether superior performance on corporate social responsibility (CSR) strategies leads to better access to finance. We hypothesize that better access to finance can be attributed to (1) reduced agency costs due to enhanced stakeholder engagement and (2) reduced informational asymmetry due to increased transparency. Using a large cross-section of firms, we find that firms with better CSR performance face significantly lower capital constraints. We provide evidence that both better stakeholder engagement and transparency around CSR performance are important in reducing capital constraints. The results are further confirmed using several alternative measures of capital constraints, a paired analysis based on a ratings shock to CSR performance, an instrumental variables approach, and a simultaneous equations approach. Finally, we show that the relation is driven by both the social and environmental dimension of CSR. Copyright © 2013 John Wiley & Sons, Ltd.
2,071 citations
TL;DR: In this paper, the authors investigate the effect of corporate sustainability on organizational processes and performance using a matched sample of 180 U.S. companies, and find that corporations that voluntarily adopted sustainability policies by 1993-termed as high sustainability companies-exhibit by 2009 distinct organizational processes compared to a mismatched sample of companies that adopted almost none of these policies.
Abstract: We investigate the effect of corporate sustainability on organizational processes and performance. Using a matched sample of 180 U.S. companies, we find that corporations that voluntarily adopted sustainability policies by 1993-termed as high sustainability companies-exhibit by 2009 distinct organizational processes compared to a matched sample of companies that adopted almost none of these policies-termed as low sustainability companies. The boards of directors of high sustainability companies are more likely to be formally responsible for sustainability, and top executive compensation incentives are more likely to be a function of sustainability metrics. High sustainability companies are more likely to have established processes for stakeholder engagement, to be more long-term oriented, and to exhibit higher measurement and disclosure of nonfinancial information. Finally, high sustainability companies significantly outperform their counterparts over the long term, both in terms of stock market and accounting performance.
This paper was accepted by Bruno Cassiman, business strategy.
1,052 citations
TL;DR: In this paper, the authors argue that the notion of value has been overly simplified and narrowed to focus on economic returns and propose a more complex perspective of the value that stakeholders seek as well as new ways to measure it.
Abstract: This paper argues that the notion of value has been overly simplified and narrowed to focus on economic returns. Stakeholder theory provides an appropriate lens for considering a more complex perspective of the value that stakeholders seek as well as new ways to measure it. We develop a four-factor perspective for defining value that includes, but extends beyond, the economic value stakeholders seek. To highlight its distinctiveness, we compare this perspective to three other popular performance perspectives. Recommendations are made regarding performance measurement for both academic researchers and practitioners. The stakeholder perspective on value offered in this paper draws attention to those factors that are most closely associated with building more value for stakeholders, and in so doing, allows academics to better measure it and enhances managerial ability to create it.
700 citations
TL;DR: The Value Creation Spectrum as discussed by the authors provides new reference terms for defining and analyzing value creation, and Collaboration Stages reveals how value creation varies across different types of collaborative relationships, and partnering processes reveal the value creation dynamics in the formation and implementation stages, and collaboration outcomes examine impact at the micro, meso, and macro levels.
Abstract: This focused review of the nonprofitbusiness collaboration and related corporate social responsibility literature identifies problematic aspects of the treatment of value creation and, therefore, develops a conceptual and analytical framework to address them and the following research question: How can collaboration between nonprofits and businesses most effectively co-create significant economic, social, and environmental value for society, organizations, and individuals? The first two components of the Collaborative Value Creation framework are presented in this first of two articles The Value Creation Spectrum provides new reference terms for defining and analyzing value creation, and Collaboration Stages reveals how value creation varies across different types of collaborative relationships. The framework's next two components, which are elaborated in the sequential article, are Partnering Processes, which reveals the value creation dynamics in the formation and implementation stages, and Collaboration Outcomes, which examines impact at the micro, meso, and macro levels.
538 citations
TL;DR: In this paper, the authors examine links, similarities, and dissimilarities between stakeholder theory and sustainability management and develop a conceptual framework to increase the application of stakeholder theories in sustainability management.
Abstract: This essay examines links, similarities, and dissimilarities between stakeholder theory and sustainability management. Based on the analysis a conceptual framework is developed to increase the appl...
454 citations