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Stakeholders, social responsibility, and performance: Empirical evidence and theoretical perspectives

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Stakeholders, social responsibility, and performance: Empirical evidence and theoretical perspectives

Abstract

The management of competing stakeholder interests has emerged as a significant topic in the management literature. Related issues are the relationship between stakeholder management and the perception that a firm is socially responsible, and the performance implications of both stakeholder management and social responsibility. Theory and models surrounding these issues are abundant, but empirical research is in an early stage. This research forum reports six excellent efforts to-tackle fundamental ideas about stakeholders, social responsibility, and performance.
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... In addition, commercial companies have become more important, creating incentives that have prompted scholars, company owners, managers, and shareholders to consider abandoning the classical model and adopting the new one. According to (Kreitner, 2001), time has come to revamp what they believe to be an obsolete, classical must go beyond profit-making and ensure responsibility towards society and stakeholders (Harrison Freeman, 1999). According to Davis (Davis, 1973) nomic, technical, and legal requirements of the company. ...
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Corporate social responsibility is a relatively new concept that became widespread about three decades ago. Since then, it has become one of the most important aspects of designing and implementing business policies and strategies in organizations around the world. This paper aims to study the CSR reports of Nokia and Coca-Cola to discover the extent to which global companies apply the principles of corporate social responsibility in the following three aspects: the environment, employees, and society. The current study compares the policies of global companies in these areas and aims to determine whether global companies alter their social responsibility policies in different places around the world based on the cultural and social differences in which they perform their business activities. The research methodology is qualitative analysis based on secondary data such as previous studies and the analysis of the 2018 CSR reports of Nokia and Coca-Cola. The study concluded that the two companies do not apply social responsibility policies to the same extent and that companies do not follow different policies in different countries around the world.
... The reason being it is regarded as a state of art theory as it applies to different organisations, industries, and cultures. To put it another way, the stakeholder perspective deals with the following aspects: shareholders (clients/customers), employees, business partners (governments and competitors), local communities, and the natural environment (Harrison andFreeman, 1999: Zhao et al., 2012). The stakeholder theory of Freeman (1984) is centred on the idea that an organisation can perform better and survive longer if it effectively manages its stakeholder relationships. ...
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... Bourguignon (1997) describes performance as not just being statics as regards obtaining a result, but as an action with dynamism exhibiting a behaviour of constantly adding value. Harrison and Freeman (1999) posited that when stakeholders demands are met then an enterprise can be described to have attained a high level of performance. Approaching the twenty-first century, the definition of organizational performance was basically the capability or skill by which the organizations efficiently use the resources within their means to achieve set organizational goals and objectives whilst providing relevant information to users (Peterson, Gijsbers & Wilks, 2003). ...
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... For both variables, age and size, we took a natural logarithm to reduce the skewness. Additionally, we controlled for the number of owners and sole ownership (Harrison and Freeman, 1999), since owners may bring financial and social capital to the firm which facilitate its performance. We also controlled the industry sector since some industries might be costly and have performance barriers. ...
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... Stakeholder theory suggests that the interests of employees, customers, shareholders, suppliers must be managed and integrated. In other words, interests of shareholders and stakeholders must be taken into consideration by managers in case of implementing new strategies (Harrison & Freeman, 1999). Stakeholder theory also focused the stakeholders' power on shaping organization's responsibility behavior (Barnett & Salomon, 2012;Delmas & Toffel, 2008). ...
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... Spočiatku filantropické úsilie nasmerované do riešenia "robotníckej otázky" napokon prerástlo v rad serióznych teoretických aj výskumných štúdií, či praktických reforiem, ktoré boli spojené snahou o elimináciu chudoby v spoločnosti. Dnes sú najviac spájané so 54 zavedením sociálneho a zdravotného poistenia (Caroll, 2008, Harrison, Freeman, 1999. Medzi významnými osobnosťami boja proti chudobe, najmä mestskej, nájdeme sociálne orientovaných ekonómov, filozofov, ale aj kňazov. ...
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Many studies on the impact of boards of directors on corporate social responsibility have focused on the human capital of board members (i.e., structures and characteristics). However, the relational capital of board members (i.e., board interlock centrality) has yet to be fully explored. This study examines the extent to which board members are connected in their networks (i.e., board interlock centrality) on corporate social responsibility (CSR) performance in the restaurant industry. It also recognizes the moderating role of board effectiveness on the relationship between board centrality and CSR performance. On the basis of organization legitimacy theory and resource dependence theory, this study found that high-centrality boards increase positive CSR performance. The effect is more substantial when a firm has more standing board committees. The theories view firms as components of the larger social environment, and their performance depends on their ability to procure crucial resources from other firms through mutual exchange. No significant link was found between negative CSR performance and the moderating effect of board committees.
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The stakeholder theory has been advanced and justified in the man- agement literature on the basis of its descriptive accuracy, instrumen- tal power, and normative validity. These three aspects of the theory, although interrelated, are quite distinct; they involve different types of evidence and argument and have different implications. In this article, we examine these three aspects of the theory and critique and integrate important contributions to the literature related to each. We conclude that the three aspects of stakeholder theory are mutually supportive and that the normative base of the theory-which includes the modern theory of property rights-is fundamental. If the unity of the corporate body is real, then there is reality and not simply legal fiction in the proposition that the man- agers of the unit are fiduciaries for it and not merely for its individual members, that they are . . . trustees for an institu- tion (with multiple constituents) rather than attorneys for the stockholders.