Stakeholder Judgments of Value

2016 ◽  
Vol 26 (2) ◽  
pp. 227-256 ◽  
Author(s):  
Leena Lankoski ◽  
N. Craig Smith ◽  
Luk Van Wassenhove
Keyword(s):  
Business Ethics ◽  
Prospect Theory ◽  
Stakeholder Theory ◽  
Value Creation ◽  
Management Practice ◽  
Reference State ◽  
Value Judgments ◽  
And Shifts ◽  
Corporate Actions

ABSTRACT: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.

Entrepreneurship and Stakeholder Theory

ruffin_darden ◽  
2002 ◽  
Vol 3 ◽  
pp. 175-195 ◽  
Author(s):  
Ronald K. Mitchell ◽  
Keyword(s):  
Information Processing ◽  
Business Ethics ◽  
Stakeholder Theory ◽  
Value Creation ◽  
Common Ground ◽  
Cognitive Theory ◽  
Distribution Of Wealth ◽  
Value Sharing ◽  
Processing Theory ◽  
Research And Education

In his Ruffin Lecture on stakeholder value and the entrepreneurial process, Professor S. Venkataraman asserted that two processes: value creation, and value sharing, are common ground for both the field of business ethics and the field of entrepreneurship (Venkataraman, 1999). In this article I further explore the connections between entrepreneurship and stakeholder theory raised in the Lecture, as they relate to both the production and the distribution of wealth in society. Through the application of transaction cognition theory, which suggests that a type of stakeholder-centered expert transacting script can integrate entrepreneurship and stakeholder theory through concepts from its sub-specialty, expert information processing theory, I employ a cognitive theory lens to suggest a set of integrating ideas and implications that attempt to complement and expand on Professor Venkataraman’s thesis. Implications for research and education conclude the article.

scholarly journals Incumbent Stakeholder Management Performance and New Entry

2020 ◽  
Author(s):  
André Laplume ◽  
Kent Walker ◽  
Zhou Zhang ◽  
Xin Yu
Keyword(s):  
Business Ethics ◽  
Competitive Advantage ◽  
Stakeholder Theory ◽  
Stakeholder Management ◽  
Stakeholder Group ◽  
Curvilinear Relationship ◽  
Management Performance ◽  
Entrepreneurial Entry ◽  
Very High ◽  
New Entry

Abstract Instrumental stakeholder theory seeks to explain how managing stakeholders effectively can yield competitive advantage for incumbent firms. We extend instrumental stakeholder theory to explain and predict future competition operationalized as new entrepreneurial entries. Our study is among the first to empirically examine the relationships between aggregate stakeholder management performance and the entrepreneurial entries of individuals. Using a combined U.S. dataset from 2003 to 2013 from the Kinder, Lydenberg and Domini (KLD) Index, Compustat, and Kauffman’s Entrepreneurship Survey, we find support for three hypotheses. First, higher levels of stakeholder management performance are related to lower rates of entrepreneurial entry. Second, a curvilinear relationship exists between stakeholder management performance and entrepreneurial entry, where both low and very high stakeholder management performance increase entrepreneurial entry. Third, the greater the variance in stakeholder management performance across stakeholders, the more entrepreneurial entry. Our findings suggest that managing for stakeholders can help to avoid future competition. We add an entrepreneurship lens to the business ethics of stakeholder theory showing how incumbent stakeholder management performance shapes opportunities for entrepreneurs, a largely neglected stakeholder group.

A Stakeholder Theory Perspective on Business Models: Value Creation for Sustainability

2019 ◽  
Vol 166 (1) ◽  
pp. 3-18 ◽  
Author(s):  
Birte Freudenreich ◽  
Florian Lüdeke-Freund ◽  
Stefan Schaltegger
Keyword(s):  
Stakeholder Theory ◽  
Value Creation ◽  
Business Models

The transformation of Chinese business ethics in line with its emergence as a global economic leader

2015 ◽  
Vol 8 (2) ◽  
pp. 106-122
Author(s):  
Ron Berger
Keyword(s):  
Business Ethics ◽  
Rapid Development ◽  
Chinese Economy ◽  
Future Research ◽  
Content Type ◽  
Chinese Business ◽  
Future Situation ◽  
Business Ethics In China ◽  
And Shifts ◽  
Corporate Social

Purpose – This paper aims to present the evolution of Chinese business ethics and CSR policy. China currently has business ethics and corporate social responsibility (CSR) concerns primarily because its economy is in evolution. As the Chinese economy is in transition from the late 1970s from a command–Communist economy to a more hybrid system Beijing model (a system based on a capitalist market controlled through bureaucracy), much has to be understood if one wants to participate in its vast economic potential. Design/methodology/approach – The study is based on the building of a model that depicts the evolution of business ethics in China as a base for further research. Findings – With the rapid development of the Chinese economy, opportunities are opening up to Chinese entrepreneurs and connected officials. This has led to money worship and, in some cases, thorough unethical behavior. The uncertain and ever-changing rules of the game generate opportunity for business ethics and CSR problems. This wealth creates temptation and incentives to cut corners to get rich fast. Much research has tried to explain business ethics in China through the understanding of Guanxi (Chinese social network of reciprocal business relations common in Confucian cultures), but in my view, the evolutionary aspect of it is missing to explain the present and future situation. Whereas considerable research has dealt with the growth of Chinese industries in recent years, the key relationship between changes in its economy and shifts in Chinese business ethics has been neglected. This paper presents the evolution of Chinese business ethics and CSR policy. Originality/value – The paper illustrates the evolution of Chinese business ethics and how one has to adapt if one wants to succeed in its ever evolving and maturing market. A model is presented that can assist in future research in the area.

The Building and Breaking of Peace

2021 ◽  
Author(s):  
Molly M. Melin
Keyword(s):  
Corporate Culture ◽  
Rational Choice Theory ◽  
Choice Theory ◽  
Bargaining Process ◽  
Peace And Conflict ◽  
Government Capacity ◽  
And Shifts ◽  
Corporate Actions ◽  
The Cost

The Building and Breaking of Peace considers the role of corporate firms in building peaceful societies. Examining the corporate motives for peacebuilding and then the implications of these activities for preventing violence and conflict resolution creates a holistic picture of the peace and conflict process. The book examines variation in corporate engagement as a product of corporate culture and shifts in government capacity, as well as threats to the ability to conduct business. Corporations engage in peacebuilding when there is a gap in the state’s capacity to enforce laws creating the demand for engagement but when there is stability that enables firms to supply peacebuilding. The book then considers the implications of corporate engagement for preventing and ending violence. Building on the rational choice theory of civil war and drawing from business research, The Building and Breaking of Peace examines the role of corporate firms in building peaceful societies. While firms are uniquely situated in their ability to raise the cost of violence, an active private sector acts as an additional veto player in the bargaining process, making it significantly harder to reach an agreement. The findings suggest that corporations help to prevent violence but not resolve it. These arguments are tested on original cross-national data of peacebuilding efforts by firms in Latin America, the Middle East, and Africa from 2000 to 2018 and in-depth case analyses of corporate actions and outcomes in Colombia, Northern Ireland, and Tunisia.

Prospect theory: an analysis of corporate actions and priorities in pandemic crisis

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Poornima Tapas ◽  
Deepa Pillai
Keyword(s):  
Prospect Theory ◽  
Future Research ◽  
Research Approach ◽  
Strategic Decisions ◽  
Organizational Growth ◽  
Content Type ◽  
Grounded Theory Research ◽  
Corporate Decisions ◽  
Corporate Actions ◽  
Different Sources

Purpose The purpose of this study is to examine and interpret the findings from different sources on the corporate decisions during COVID-19. Design/methodology/approach The COVID-19 is a new phenomenon; grounded theory research approach is adopted to develop propositions on prospect theory and strategic decisions. The paper examines and interprets the findings from different sources on the corporate decisions during COVID-19. Findings Conventionally, it is believed that innovation brings risks, and individuals preferred certainty over uncertainty, even if the gains under uncertainty were twice as high. But, the results of the study indicate a divergent trend. Under threat perceptions of risks, companies explore significant opportunities and possibilities for organizational growth. Practical implications The study provides a framework to analyze the strategic decisions of corporate enterprises. The decisions replicate value function as concave in a gain situation and convex in a loss realm in times of pandemic crises. Originality/value This paper uses “actions taken” by enterprises offering various solutions in the testing times. The study is multidisciplinary in nature; it analyses the transformation strategic decisions in the context of economic and social dimensions for surviving the pandemic crises. The study provides a foundation for future research, as inferences are based on select examples.

scholarly journals Effects of social, environmental, and institutional factors on sustainability report assurance: evidence from European countries

2020 ◽  
Vol 28 (6) ◽  
pp. 1059-1087 ◽  
Author(s):  
Lorenzo Simoni ◽  
Laura Bini ◽  
Marco Bellucci
Keyword(s):  
Business Ethics ◽  
Stakeholder Theory ◽  
Environmental Performance ◽  
Signaling Theory ◽  
European Countries ◽  
Institutional Factors ◽  
Legitimacy Theory ◽  
Content Type ◽  
Social Environmental ◽  
Sustainability Report

Purpose The purpose of this study is to extend existing knowledge on the determinants of sustainability report (SR) assurance practices. Four different theories – stakeholder theory, institutional theory, signaling theory and legitimacy theory – are used to formulate several hypotheses regarding the main factors that can influence a company’s decision to assure its SRs. Design/methodology/approach Using a sample of 417 listed organizations based in different European countries over five years, the effects of stakeholder commitment, country orientation toward sustainability, firm environmental performance and business ethics controversies on the decision to assure SRs are assessed. Findings The results show that a company’s decision to assure its SRs is motivated by the need to maintain good relations with its stakeholders (which is in line with stakeholder theory and legitimacy theory), as well as by the willingness to signal their sustainability performance (which is in line with signaling theory) and to gain legitimacy. On the contrary, business ethics controversies do not seem to be relevant to a company’s assurance practices. Originality/value This paper provides new insights into the influence that social, environmental and institutional factors have on assurance strategies. New factors that previous research does not investigate – environmental performance, business ethics controversies and corporate governance – are tested. Factors that are already investigated in the literature are considered from an original perspective of introducing alternative measures (e.g. for the scope of national sustainability policies).

Business Ethics, Stakeholder Theory, and the Ethics of Healthcare Organizations

2000 ◽  
Vol 9 (2) ◽  
pp. 169-181 ◽  
Author(s):  
PATRICIA H. WERHANE
Keyword(s):  
Business Ethics ◽  
Patient Care ◽  
Stakeholder Theory ◽  
Financial Support ◽  
Professional Ethics ◽  
Clinical Care ◽  
Codes Of Ethics ◽  
Healthcare Organizations ◽  
Professional Codes ◽  
Professional Codes Of Ethics

Until recently (before managed care), business issues in healthcare organizations (HCOs) were relatively insulated from clinical issues, for several reasons. The hospital at earlier stages of its development operated on a combination of charitable and equitable premises, allowing for providing care to be separated from financial support. Physicians, who were primarily responsible for clinical care, constituted an independent power nexus within the hospital and were governed by their own professional codes of ethics. In exchange for a great deal of control over their conditions of practice, they took almost complete responsibility for patient care. Thus clinical and professional ethics could to some extent be compartmentalized from the business issues—a much easier feat when, as in much of the last few decades, virtually all care was reimbursed from some source or other. In addition, many HCOs were not categorized or treated as businesses, although of course they were presumed to be governed by the same expectation for good management as any other organization.

New Directions in Strategic Management and Business Ethics

2010 ◽  
Vol 20 (3) ◽  
pp. 401-425 ◽  
Author(s):  
Heather Elms ◽  
Stephen Brammer ◽  
Jared D. Harris ◽  
Robert A. Phillips
Keyword(s):  
Business Ethics ◽  
Strategic Management ◽  
Stakeholder Theory ◽  
Environmental Sustainability ◽  
Research Agenda ◽  
Managerial Discretion ◽  
Behavioral Strategy ◽  
New Directions ◽  
Strategy As Practice ◽  
The Relationship

ABSTRACT:This essay attempts to provide a useful research agenda for researchers in both strategic management and business ethics. We motivate this agenda by suggesting that the two fields started with similar interests, diverged, and are beginning to converge again. We then identify several streams that hold particular promise for developing our understanding of the relationship between strategy and ethics: stakeholder theory, managerial discretion, behavioral strategy, strategy as practice, and environmental sustainability.

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