Sustainable Management Practices and Stakeholder Pressure: A Systematic Literature Review

Abstract

This paper aims to summarize and analyze what is known regarding the ways in which stakeholder pressure may influence sustainable practices. Furthermore, this study extends this understanding to the development of several research opportunities for further investigation. A systematic extensive literature review was performed to investigate the relationship between stakeholder pressure and sustainable management practices. This literature review shows that organizational factors are more widely covered than the individual and macro-level factors as moderating variables, and suggests more organizational-, individual-, and macro-level factors, as well as the interaction of these factors as moderating variables on the link between stakeholder pressure and sustainable management practices. Furthermore, the use of the stakeholder theory is dominant, followed by the use of the institutional theory. The manufacturing sector is widely covered, survey methodology is extensively used, and the environmental dimensions are more addressed than the social dimensions of sustainability. The relationship between stakeholder pressure and the adoption of sustainable management practices is not obvious, due to the varied results. Therefore, it is difficult to establish a direct relationship between stakeholder pressure and the adoption of sustainable management practices. This study furthers insight into the stakeholder pressure influence on sustainable management practices by reviewing the comprehensive literature and suggesting future research opportunities.

Organizational Learning Process, CEO Values and Sustainability Performance of Manufacturing Firms in Uganda

“…Stakeholder interests are broadly categorized as economic, social, and environmental in nature (Jum'a et al, 2022). Thus, managers need to work towards satisfying simultaneously the economic needs of the minority shareholders while ensuring that the social and environment welfare needs of the majority stakeholders are not compromised (Haleem et al, 2022).…”

“…The global quest to attain Sustainability Development Goals (SDGs) has intensified stakeholders' pressure for firm sustainability performance (Haleem et al, 2022). As a result, firms need to strike a balance between social, environmental, and economic goals.…”

“…Besides, organizational learning as the main predictor of sustainability performance has predominantly been operationalized following a capabilities and/or a characteristics perspective (e.g Battistella et al, 2020;Vihari et al, 2018) and limited knowledge exists on how organizational learning process is associated with sustainability performance, which is suggested in the literature of Van Mierlo and Beers (2020), North and Kumta (2020) and Martínez-Costa et al (2019). Further still, a number of existing empirical studies assume a direct link between organizational learning and sustainability without paying attention to other internal contextual factors that could affect this relationship (Haleem et al, 2022, Hayes, 2018. For instance, CEO personal values have been found to impact firm strategic choice and performance outcomes (Lichtenstein and Higgs, 2022;Hoffmann & Meusburger, 2018).…”

Do Corporate Governance and Financial Characteristics May Increase CSR Disclosures?

“…Stakeholders are defined as individuals or groups who can influence, or be influenced by, an organization. In stakeholder theory explains the congruence between the values of the company and its managers, as well as stakeholder expectations and social issues that will determine the company ability to sell the company's products (Freeman, 2004, Haleem et al, 2022. The stakeholder approach focuses on managing the business environment, its relationships, and promoting common interests, which ultimately have an impact on long-term viability (Haleem et.al, 2022).…”

Sustainable products and audit fees: empirical evidence from western European countries

“…Xin et al (2022) pointed out that current studies have discussed the impact of environmental matters on auditors' behaviours from the perspectives of corporate environmental information disclosure, environmental responsibility and environmental regulation. According to Haleem et al (2022), the broader social concerns of sustainability, stakeholder pressures and the demand for reliable information have changed significantly in recent years, and firms are must to respond to these changes. Researchers have also examined the relationship between sustainable performance and audit pricing.…”