Does the theory of stakeholder identity and salience lead to corporate social responsibility? The case of environmental justice

Abstract

Purpose The purpose of this paper is to review a possible link between the theory of stakeholder identity and salience (TSIS) and environmental justice and suggest a possible resolution. Design/methodology/approach This is a conceptual paper which also uses examples from industry. Findings The TSIS is a common management approach that helps companies determine stakeholders’ priority in building relationships and making decisions. The weakness of this theory is that it suggests that stakeholders lacking power, legitimacy and urgency be de-prioritized. This can lead to vulnerable populations’ interests being subjugated to those of more powerful stakeholders, leading at times to environmental injustice. This occurrence can jeopardize a company’s social license to operate. Therefore, it is suggested that TSIS be embedded in a situational analysis where the legitimacy and urgency criteria are applied beyond just stakeholders. Research limitations/implications Further research should look at the results of modifying the TSIS such that vulnerable populations are not de-prioritized. Practical implications This paper provides a way for organizations to be more cognizant of vulnerable populations and include them in decision-making to help avoid situations of environmental injustice. Social implications If organizations can recognize the impact of their decisions on vulnerable populations and include them in the decision-making process, situations of environmental injustice might not occur. Originality/value This paper brings to light one weak aspect of a commonly used and well accepted theory and suggests a way to mitigate potential harm that at times may arise in the form of environmental injustice.

Pengaruh Eco-Efficiency, Green Inovation Dan Carbon Emission Disclosure Terhadap Nilai Perusahaan Dengan Kinerja Lingkungan Sebagai Moderasi

“…Menurut Freeman (1998) stakeholder didefinisikan sebagai "Any group or individual who can influence or be influenced by the achievement of company goals" definisi ini serupa dengan pengembangan definisi menurut Beckman et al, (2016) yang menyatakan bahwa teori stakeholder adalah teori yang melibatkan beberapa konstituen yang memiliki dampak atau berdampak terhadap perusahaan. Menurut Tauringana & Chithambo (2015) manajer harus menjelaskan kinerja lingkungan melalui pengungkapan informasi lingkungan untuk stakeholder sebagai akses untuk menuju keberlanjutan.…”

Get Ratioed

“…In the absence of these components of social license, trust cannot be established (Thomson & Boutilier, 2011), suggesting that these organizations failed to gain many people's trust. Although it may be tempting to dismiss the opinions of Twitter users because they have little direct influence on companies' operations, Beckman et al (2016) point out that even low-power stakeholders might be negatively impacted by an organization's damage to the environment and therefore should be considered salient to maintain a good reputation and social license. Moreover, Thomson and Boutilier (2011) assert that anyone who is impacted by or who can impact a project should be considered a stakeholder.…”

Who or what really counts? The application of BASEClass for stakeholder evaluation and classification

“…Furthermore, Benn et al (2010) have recognized the role of FSs in following corporate social responsibility (CSR). Therefore, interacting with this group is crucial for identifying their needs and concerns in order to understand their social impact (Beckman et al, 2016). According to Neumann (2020), FSs can impact the ability of the organization to value creation and capture, without direct relationship; hence, understanding and gathering information and knowledge about this group requires complicated interactions.…”

“…(2010) have recognized the role of FSs in following corporate social responsibility (CSR). Therefore, interacting with this group is crucial for identifying their needs and concerns in order to understand their social impact (Beckman et al. , 2016).…”