The neglect of marginalized stakeholders is a colossal problem in both stakeholder and entrepreneurship streams of literature. To address this problem, we offer a theory of marginalized stakeholder-centric entrepreneurship. We conceptualize how firms can utilize marginalized stakeholder input actualization through which firms should process a variety of ideas, resources, and interactions with marginalized stakeholders and then filter, internalize, and, finally, realize important elements that improve a variety of related socioeconomic, ethical, racial, contextual, political, and identity issues. This input actualization process enables firms to innovate with marginalized stakeholders and develop marginalized stakeholder capabilities. To this end, firms fulfill both their moral and entrepreneurial claims to marginalized stakeholders.

Tackling grand challenges requires coordination and sustained effort among multiple organizations and stakeholders. Yet research on stakeholder theory has been conceptually constrained in capturing this complexity: existing accounts tend to focus either on dyadic level firm–stakeholder ties or on stakeholder networks within which the focal organization is embedded. We suggest that addressing grand challenges requires a more generative conceptualization of organizations and their constituents as stakeholder systems. Using the metaphor of ballet and insights from dance theory, we highlight four defining dimensions of stakeholder systems (two structural and two dyadic); we proceed to offer a dynamic model of how those dimensions may interact and coevolve. Our metaphor and resulting theory of stakeholder systems are thereby well equipped to incorporate the complexity of tackling grand challenges, where many contemporary stakeholder arrangements are oriented around issues rather than firms.

Empirical research is largely supportive of the assertion of instrumental stakeholder theory that a positive relationship exists between “managing for stakeholders” and firm performance. However, despite considerable debate on the subject, the amount of variation across firm investments in stakeholders (stakeholder management performance) has not been adequately investigated. We address this gap using a sample of more than eighteen thousand firm-level observations over ten years. We find evidence to support an inverted U–shaped relationship between variation in stakeholder management performance and Tobin’s q, suggesting that firms that have some imbalance in their stakeholder management, but not too much, perform best. We discuss the implications of our study for instrumental stakeholder theory and managerial practice.

I address an interesting puzzle of how marginalized groups gain self-representation and influence firms’ strategies. Accordingly, I examine the case of access to low-cost HIV/AIDS drugs in South Africa by integrating W. E. B. Du Bois’s work into stakeholder theory. Du Bois’s scholarly work, most notably his founding contribution to Black scholarship, has profound significance in the humanities and social sciences disciplines and vast potential to inspire a new way of thinking and doing research in the management and organization fields, including business ethics research. By drawing on Du Bois’s works, I argue that through reconstruction of their selves—knowing their souls—marginalized groups know their capabilities better, enabling them to overcome their political and strategic limitations and ensure their true self-representation. They are also empowered to use political imagination and strategies of resistance against more powerful opponents. This influences powerful actors to accept the demands of marginalized groups.

Global multi-stakeholder initiatives (MSIs) are important instruments that have the potential to improve the social and environmental sustainability of global supply chains. However, they often fail to comprehensively address the needs and interests of various supply-chain participants. While voluntary in nature, MSIs have most often been implemented through coercive approaches, resulting in friction among their participants and in systemic problems with decoupling. Additionally, in those cases in which deliberation was constrained between and amongst participants, collaborative approaches have often failed to materialize. Our framework focuses on two key aspects of these breakdowns: assumptions about the orientation of MSI participants, and the deliberation processes that participants use to engage with each other to create these initiatives and sustain them over time. Drawing from stakeholder and deliberation theories, we revisit the concept of MSIs and show how their deliberative capacity may be enhanced in order to encourage participants to collaborate voluntarily.

The purpose of this paper is to analyse the performance of two similar small businesses in seeking resource consent to expand their operations. The proposed developments are examples of locally unwanted land use. Why did one project proceed as planned, and the other project experience expensive delays? The different outcomes are examined from three perspectives: stakeholder theory, the NIMBY phenomena and the legislative framework. The paper then suggests approaches to address the growing problem of community resistance that can threaten small business development. The paper contributes to the literature by providing new insights into the complex relationship between stakeholder theory, the NIMBY phenomena and the legislative framework.

Profit maximizers have reasons to agree with stakeholder theorists that managers may need to consider different values simultaneously in decision making. However, it remains unclear how maximizing a single value can be reconciled with simultaneously considering different values. A solution can neither be found in substantive normative philosophical theories, nor in postulating the maximization of profit. Managers make sense of the values in a situation by means of the many thick value concepts of ordinary language. Thick evaluation involves the simultaneous consideration of different values: making sense of a value always involves knowing how to engage with it given the other values in the situation. This also goes for profit: maximization is only one way of engaging with the value of profit, and grasping whether maximization is appropriate involves considering other values. We discuss some consequences of our approach for stakeholder theorists and profit maximizers.

Although central to stakeholder theory, stakeholder value is surprisingly neglected in the literature. We draw upon prospect theory to show how stakeholder judgments of value depend crucially on the reference state, how there are several alternative reference states that may be operative when stakeholders judge value, how the choice of reference state for stakeholders’ value judgments can occur intuitively or deliberately, and how the level of the operant reference state may change with time and may also be incorrectly perceived by stakeholders or managers. Our theorizing results in a fundamentally different way of perceiving the value of corporate actions to stakeholders and shifts understanding of the avenues available for companies and others to influence stakeholder judgments of value. This novel perspective has implications both for theory and management practice, and not least for normative business ethics, if business is about stakeholder value creation.

There is regular and explicit media coverage of employee behaviour intended to advance organizational goals, but that harms stakeholder interests in ways that exceed necessity and reason. Although several constructs such as workplace deviance, organizational misbehaviour, corporate crime and corruption, and unethical pro-organizational behaviour have been advanced to account for this type of behaviour, no comprehensive framework exists that also includes the full scope of its important consequences. Accordingly, we propose the umbrella construct of detrimental citizenship behaviour (DCB) that allows us to integrate and build upon previous related conceptualizations that have developed mostly in parallel bodies of research. We rely on ethical decision-making, creativity, and instrumental stakeholder theories to embed the umbrella DCB construct within a multi-level and longitudinal model. The DCB model includes processes through which such behaviour and its consequences unfold over time for organizational members, organizations, and society at large. The proposed framework describes, explains, and predicts DCB and also leads to suggestions for future research. In addition, we offer suggestions regarding how to manage this highly consequential type of organizational behaviour, thereby engaging in a much-needed science-practice dialogue in management and organization studies.

Corporate social responsibility (CSR) has become increasingly significant for a wide range of organisations and for the managers that work within them. This is particularly true in the sport industry, where CSR is now an important area of focus for sport organisations, sport events and individual athletes. This article demonstrates how CSR can inform both theoretical debates and management practice within sport organisations. It does so by focusing on stakeholder theory, which overlaps considerably with CSR. In this article, stakeholder theory is used to examine three major CSR issues: stakeholder definition and salience, firm actions and responses, and stakeholder actions and responses. These three issues are considered in the context of the UK football industry. The article draws on 15 semi-structured qualitative interviews with senior representatives from a number of different organisations. These include the director of a large professional football club; a chief executive of a medium-sized professional football club in addition to the supporter-elected director; and the vice-chairman of a small professional football club. Additional interviews were undertaken with five representatives from national supporter organisations, two board members at two large supporter associations, two representatives from the Football League, one representative from the Independent Football Commission, and a prominent sports journalist. The analysis of the interview data illustrates ways in which CSR can be implemented by sport organisations through stakeholder management strategies. The article concludes that stakeholder theory has both conceptual and empirical value and can be used to illuminate key issues in sport management.

This paper reports an exploratory and qualitative study of the corporate social responsibility (CSR) beliefs of leaders of large Australian financial institutions. The findings are presented in four sections. The first discusses whether leaders have a mental model of the firm that is most closely aligned with the traditional shareholder or the stakeholder view of the firm. It then examines how they frame the organization's responsibilities, particularly as they relate to balancing the needs of shareholders and other stakeholders. The third section identifies how they view CSR and the fulfilment of potential economic, legal, ethical and philanthropic responsibilities of organizations. The final section examines the driving factors that lead to their promotion of corporate social responsibility. We find that although many leaders support the wealth creation model's central premise that the organization's primary responsibility is to maximise its value in order to meet its fiduciary obligations to its shareholders, they also believe that CSR activities benefit the organization financially and in building corporate sustainability, employee engagement and performance, and social capital. CSR activities are also believed to increase the legitimacy of the organization, although philanthropy is not supported unless there is a business case. This has implications for those seeking support from organizations for community causes. We also find the view of employees as primary stakeholders is strong and widespread; an implication of this is that employee influence is a strong lever for positive change towards CSR behaviour in a firm.

The notion of “democracy” has become a much-debated concept in scholarship on business ethics, management, and organization studies. The strategy of this paper is to distinguish between a principle of organization that fosters participation (type I democracy) and a principle of legitimation that draws on consent (type II democracy). Based on this distinction, we highlight conceptual shortcomings of the literature on stakeholder democracy. We demonstrate that parts of the literature tend to confound ends with means. Many approaches employ type I democracy notions of participation and often take for granted that this also improves type II democratic legitimation. We hold this to be a mistake. We provide examples of the ambiguity of organizational procedures and show that under some circumstances a decrease in the degree of participation may actually increase legitimation because a governance structure that results in higher productivity can provide higher benefits for all parties involved, serve their interests and therefore meet their agreement. Less type I democracy may mean more type II democracy. We believe this to be an important insight for judging (and further improving) the legitimacy of both capitalistic firms and competitive markets.

The link between firm corporate social performance (CSP) and executive compensation could be driven by a sorting effect (a firm’s CSP is related to the initial levels of compensation of newly hired executives), or by an incentive effect (incumbent executives are rewarded for past firm CSP). Existing empirical work focuses exclusively on the incentive effect. In contrast, in this paper we explore the sorting effect of firm CSP on the initial compensation of newly hired executives. In doing so, we develop a novel theoretical approach based on an integration of stakeholder theory and human capital theory, suggesting a positive association between the initial compensation of executives and firm CSP strengths and concerns. It also suggests that the strength of this relationship varies between different executive roles (as a function of stakeholder-management responsibilities). We find support for this theoretical framework in a large sample of newly-hired executives employed by Standard & Poor 1500 firms.

In a world filled with poverty, environmental degradation, and moral injustice, social enterprises offer a ray of hope. These organizations seek to achieve social missions through business ventures. Yet social missions and business ventures are associated with divergent goals, values, norms, and identities. Attending to them simultaneously creates tensions, competing demands, and ethical dilemmas. Effectively understanding social enterprises therefore depends on insight into the nature and management of these tensions. While existing research recognizes tensions between social missions and business ventures, we lack any systematic analysis. Our paper addresses this issue. We first categorize the types of tensions that arise between social missions and business ventures, emphasizing their prevalence and variety. We then explore how four different organizational theories offer insight into these tensions, and we develop an agenda for future research. We end by arguing that a focus on social-business tensions not only expands insight into social enterprises, but also provides an opportunity for research on social enterprises to inform traditional organizational theories. Taken together, our analysis of tensions in social enterprises integrates and seeks to energize research on this expanding phenomenon.

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.