Analyzing the Essence of Stakeholder Relationships: What do we Need in Addition to Power, Legitimacy, and Urgency?

The aim of this study is to analyse how secondary stakeholders influence managerial decision-making on Corporate Social Responsibility (CSR) 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 (NGOs) 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 welldocumented 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.

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“…More recent empirical research has suggested more stakeholder characteristics, such as trust and learning potential (Myllykangas et al 2010).…”

Section: Prior Literature and Hypotheses Developmentmentioning

confidence: 99%

Secondary Stakeholder Influence on CSR Disclosure: An Application of Stakeholder Salience Theory

2015

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“…Stakeholder theory explained the relationship between an organization/company and stakeholders is relational, not a transactional relationship (Myllykangas, Kujala, & Lehtimä ki, 2011).…”

Section: Stakeholder Theorymentioning

confidence: 99%

From Asymmetric to Polycentric Development: Pattern, Distribution and Stakeholder Analysis of Community Empowerment Program in Batu, Indonesia

Kusumastuti

Izana

2018

IJSSS

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This article discuss at investigating the patterns, distribution, and stakeholders involved in the community empowerment program in Batu, East Java, Indonesia. By using the combination of Arc GIS (Geographic Information System) and Stakeholder Analysis, the community empowerment in Batu shows pragmatic and autocratic empowerment patterns. Besides, the community empowerment program in Batu is divided into 2 categories, namely exist/receive and does not exist/does not receive. The existing condition of empowerment program spreads unevenly. To deal with the issue, it is important to consider the Polycentric Development, which allows each region to have a Village Empowerment Center for equitable development. The city government has so far been the most dominant stakeholders in the empowerment program in Batu. Nevertheless, there are many other stakeholders starting to appear, such as private sectors and NGO, actors/individuals and media contributions, and universities. For recommendation, Government, private sectors, and non-governmental organizations can accommodate the principles of psychological empowerment, so that the empowerment is not only seen as a pragmatic-authoritarian impression. This principle is important because it can emotionally (intrapersonal) see someone's capacity to bring influence in making social changes and decisions. Communities as people who are exposed to empowerment programs need to actively increase participation. The next researcher can emphasize the stakeholder analysis on the collaboration and social networking patterns among them.

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“…Bundy and colleagues (2013) have moved away from the idea that firms or managers give priority to stakeholders with the most affirmative characteristics (such as power, legitimacy and urgency), a perspective that was suggested by Mitchell and colleagues' seminal theory of stakeholder salience (1997) and examined further in a considerable stream of subsequent research (Agle et al 1999;Eesley and Lenox 2004;Magness 2008;Myllykangas et al 2010;Neville et al 2011;Parent and Deephouse 2007;Tashman and Raelin 2013). Instead, by drawing on the issue management literature (see Dutton and Jackson 1989;Wartick and Mahon 1994), Bundy and colleagues (2013, p. 535) argue that firms or managers respond to specific issues.…”

Section: Theoretical Background: the Strategic Cognition View Of Issumentioning

confidence: 99%

The Strategic Cognition View of Issue Salience and the Evolution of a Political Issue: Landis & Gyr, the Hungarian Uprising and East-West Trade, 1953–1967

Stutz

2017

Issues in Business Ethics

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Why do firms facing similar stakeholder issues respond quite differently? The recently introduced strategic cognition view of issue salience and firm responsiveness (hereinafter: issue salience model) seeks to tackle this core question of stakeholder theory. I extend the nascent theorizing with a historical case study in order to rethink the model's firm-centric perspective. The firm under examination in this historical case study is the Swiss multinational Landis & Gyr (LG) during the Cold War period. Like many other Swiss exportoriented companies in the 1950s and early 1960s, LG was challenged by Swiss pressure groups, which were highly effective at putting an issue on the public agenda: the call to break off trade relations with the communist East. The empirically grounded explanation of issue interpretation and response mechanisms derived from this case study offers two key theoretical implications: First, it shifts our focus outwards, toward the social and political context, in which issues evolve and play out over time. This elaboration seeks to understand the role of the social and political surroundings in constituting firm-specific issue interpretation processes and response outcomes. Second, the findings suggest that the issue salience model emphasizes an overly homogenizing conception of the firm. By pointing towards the tensions and ambiguities in a firm's collective sensemaking efforts, I start a critique of the theory in order to push this important stream of research further.

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Analyzing the Essence of Stakeholder Relationships: What do we Need in Addition to Power, Legitimacy, and Urgency?

Abstract: Stakeholder relationship, Salience model, Value creation,

Cited by 61 publications

References 30 publications

Secondary Stakeholder Influence on CSR Disclosure: An Application of Stakeholder Salience Theory

Secondary Stakeholder Influence on CSR Disclosure: An Application of Stakeholder Salience Theory

From Asymmetric to Polycentric Development: Pattern, Distribution and Stakeholder Analysis of Community Empowerment Program in Batu, Indonesia

The Strategic Cognition View of Issue Salience and the Evolution of a Political Issue: Landis & Gyr, the Hungarian Uprising and East-West Trade, 1953–1967

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