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Article
Publication date: 3 April 2017

Qiang Li, Wenjuan Ruan, Wenjie Shao and Guoliang Huang

The purpose of this paper is to analyze the demands of the core stakeholders and how these stakeholders drive the information disclosure behaviors of the enterprise and…

Abstract

Purpose

The purpose of this paper is to analyze the demands of the core stakeholders and how these stakeholders drive the information disclosure behaviors of the enterprise and local government.

Design/methodology/approach

Content analysis was conducted. The authors collected and analyzed information disclosure laws and regulations regarding environmental emergencies in China, as well as related media reports and official accident investigation report about the oil pipeline leakage and explosion accident in City Q. The authors divided the whole process of the accident into four stages, i.e., the prodromal stage, acute stage, chronic stage, and resolution stage, and then analyzed the different demands of stakeholders and the different information disclosure behaviors of the enterprise and local government during these four stages.

Findings

During the environmental emergency, the enterprise and local government exhibited information disclosure behaviors for their own benefits. There was severe information asymmetry between the enterprise and local government. Local government acted more positively in terms of information disclosure than the enterprise due to the demands of stakeholders. There were significant differences between the driving effects of different stakeholders. The effects of central government and local communities were the strongest, followed by news media and environmental organizations, whereas general public had the weakest impact. In addition, the effects of stakeholders on the information disclosure varied throughout different stages.

Originality/value

This paper considered a Chinese typical case study, thereby providing details of information disclosure behaviors of the enterprise and local government during an environmental emergency, and making comparative analysis on the driving effects on information disclosure by different stakeholders.

Details

Disaster Prevention and Management: An International Journal, vol. 26 no. 2
Type: Research Article
ISSN: 0965-3562

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Book part
Publication date: 10 August 2018

Anne Jacqueminet and Lilach Trabelsi

Studies of corporate social responsibility (CSR) and stakeholder engagement have recently gained traction in the global strategy field. However, they have mostly developed…

Abstract

Studies of corporate social responsibility (CSR) and stakeholder engagement have recently gained traction in the global strategy field. However, they have mostly developed as parallel streams, thereby limiting the cross-fertilization between global strategy research and stakeholder theory. We believe that because the CSR context in essence calls for the simultaneous participation of a large and heterogeneous set of local and global stakeholders, it requires a novel theorizing of multinational enterprises’ (MNEs’) worldwide practice implementation. Thus, we develop a series of propositions in the context of CSR to highlight the role stakeholders play in MNE subsidiaries’ implementation of initiatives, depending on the complex institutional pressures that they undergo, their distance from the parent’s home country, and their level of network embeddedness. We focus in particular on the role of stakeholder demands alignment in subsidiaries’ CSR implementation. Our conceptual propositions are enriched by the consideration of illustrative data on initiatives undertaken by Iberdrola from 2008 to 2014.

Details

Sustainability, Stakeholder Governance, and Corporate Social Responsibility
Type: Book
ISBN: 978-1-78756-316-2

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Book part
Publication date: 23 November 2017

Anne Jacqueminet

How does distance influence the type of corporate social responsibility (CSR) implementation strategy the subsidiaries of a multinational enterprise (MNE) adopt? In this…

Abstract

How does distance influence the type of corporate social responsibility (CSR) implementation strategy the subsidiaries of a multinational enterprise (MNE) adopt? In this chapter, I argue that the relationship between distance and CSR relies on the subsidiaries’ relative need for internal versus external legitimacy. I propose that, on average, subsidiaries that are more distant from the MNE’s home country pay more attention to the demands of their local stakeholders compared to those of their headquarters because they want to acquire local legitimacy. I propose that this local prioritization will broaden the set of practices that distant subsidiaries implement on a certain CSR issue as they try to satisfy a larger set of stakeholders but reduce the extent to which they implement each of them. Furthermore, I expect that dependence on the parent MNE should limit the effect of distance on local prioritization, and therefore reduce the overall negative relationship between distance and CSR implementation level and focus. And finally, in case of high local stakeholders’ consensus, the overall negative relationship between distance and CSR implementation level and focus should again be assuaged. Thus, by looking at the subsidiaries’ simultaneous need for internal and external legitimacy and introducing the moderating effects of dependence on the parent and consensus among local stakeholders, this chapter nurtures the current discussions on the impact of distance on CSR implementation in MNEs.

Details

Distance in International Business: Concept, Cost and Value
Type: Book
ISBN: 978-1-78743-718-0

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Article
Publication date: 30 April 2021

Charles Baah, Yaw Agyabeng-Mensah, Ebenezer Afum and Minenhle Siphesihle Mncwango

Organizations desire to achieve green legitimacy and regulatory stakeholder demands and have been potent in influencing the adoption and implementation of social and…

Abstract

Purpose

Organizations desire to achieve green legitimacy and regulatory stakeholder demands and have been potent in influencing the adoption and implementation of social and environmental responsibilities in current business settings. Perceiving that social and environmental responsibilities that promote social growth and environmental sustainability have shifted from being optional to mandatory for organizations, this study from the perspectives of institutional and stakeholder theories elucidates the efficacy of green legitimacy and regulatory stakeholder demands on the adoption of social and environmental responsibilities at the organizational level and how these variables relate with environmental and financial performance in the context of an emerging economy.

Design/methodology/approach

The study adopted a positivist methodological paradigm, survey research design, a quantitative approach and partial least square structural equation modelling (PLS-SEM) in making data analysis and interpretations due to its appropriateness for predictive research models.

Findings

The results highlighted that desire for green legitimacy and regulatory stakeholder demands influenced the adoption of environmental responsibility, social responsibility, environmental and financial performance. While environmental responsibility positively and robustly influenced environmental performance, social responsibility positively and significantly influenced financial performance. The findings particularly exposed that while environmental responsibility had negative and insignificant effect on financial performance, social responsibility negatively and significantly influenced environmental performance. Moreover, environmental performance was also found to be negatively and insignificantly correlated with financial performance. Based on the results, theoretical and practical implications are explained for policymakers, managers, government authorities and business owners.

Originality/value

The study is among the few to investigate how firms desire to achieve green legitimacy and regulatory stakeholder demands motivate the adoption and implementation of environmental and social responsibilities and its implications on environmental and financial performance in the context of an emerging economy. Although environmental responsibility has received significant attention in past studies, it is mostly considered a subset of corporate social responsibility. Thus, this study is among the first to explore the dimensional effects of corporate social responsibility namely environmental responsibility and social responsibility on performance in the context of an emerging economy and as individual constructs.

Details

Management of Environmental Quality: An International Journal, vol. 32 no. 4
Type: Research Article
ISSN: 1477-7835

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Article
Publication date: 9 August 2011

Jon F. Kirchoff, Chris Koch and Bridget Satinover Nichols

The purpose of this paper is to extend the stream of thought regarding the concept of demand and supply integration (DSI) within the domain of environmental responsibility…

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Abstract

Purpose

The purpose of this paper is to extend the stream of thought regarding the concept of demand and supply integration (DSI) within the domain of environmental responsibility and green marketing.

Design/methodology/approach

Conceptual application of theory to strategic‐level concepts is used to develop propositions representing a theoretical approach to the integration of green marketing and green supply chain management (SCM).

Findings

Based on stakeholder theory, the authors propose that greater value will be perceived by customer stakeholders when the firm is able to successfully manage and coordinate demand (marketing) and supply (SCM) functions, ensuring that customer stakeholders receive what they are promised in regard to environmental products and services. For this relationship to offer competitive advantage and higher firm performance, the authors contend that it is necessary to better understand how customer stakeholders perceive firms' environmental initiatives, and to investigate if the degree to which a firm's demand and supply functions are integrated influences these perceptions.

Research limitations/implications

Scholars will benefit from ideas and questions put forth in this paper as it suggests specific avenues to pursue empirically in order to understand stakeholder perceptions of a firm's environmental responsibility activities.

Practical implications

Managers will benefit from the results of this paper by better understanding the benefits of DSI in creating marketing campaigns for environmental products and services that stakeholders perceive as legitimate.

Originality/value

The authors introduce the concept of DSI to the green marketing and green SCM literature and position DSI within the broader rubric of environmental commitment in the firm.

Details

International Journal of Physical Distribution & Logistics Management, vol. 41 no. 7
Type: Research Article
ISSN: 0960-0035

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Article
Publication date: 9 January 2020

Gustavo Barboza, Valerien Pede and Sergio Madero

The purpose of this paper is to model the role that stakeholders, and especially social responsible consumers play in the process of finding a win–win solution to control…

Abstract

Purpose

The purpose of this paper is to model the role that stakeholders, and especially social responsible consumers play in the process of finding a win–win solution to control production related negative externalities. In this regard, when information asymmetries are present and consumers become knowledgeable about them, consumers with d-preferences for corporate social responsibility (CSR) type of products becomes the driver of the firm strategy.

Design/methodology/approach

To accomplish the goals of this paper, the authors proceed to develop a series of theoretical models wherein the social gains and costs of alternative modes of intervention are illustrated. The authors begin with a standard Pigouvian tax model and construct a stakeholder equivalent tax model and finalize the analysis with consumers acting in a shared social responsible behavior with firms as the optimal solution model.

Findings

The authors show that proactive disclosure of information asymmetries regarding negative externalities develops a shared social responsibility between consumers and firms. Market-based solutions to the externality problem are achieved under this setting. This solution is preferred to a Pigouvian tax and to a stakeholder equivalent tax. It is concluded that shared social responsibility is the result of the interaction of consumers with d-preferences and the reaction of a socially responsible “firm” willing, and the authors are able to incorporate these preferences as drivers for its strategy.

Research limitations/implications

The main limitation of this paper is in its theoretical nature and specific applications to one case, that of negative externalities in production processes. The implication of this is that the model herein developed needs to be put to the empirical test.

Social implications

The overall social implications indicate that active reduction of information asymmetries is welfare improving and preferred to government intervention.

Originality/value

This paper is original as it makes use of economic principles to develop a parsimonious model to demonstrate that proactive actions of a firm in response to consumers and stakeholders demands leads to an overall social welfare improvement when negative externalities deriving from production are incorporated into the decision making process of both consumers and firms. These decisions prove superior to government regulations.

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Book part
Publication date: 17 September 2014

Marcelo Biagio Laquimia and Gabriel Eweje

This study investigates how organizations in Brazil address sustainability concerns through collaborative governance efforts with strategic stakeholders. Organizations…

Abstract

Purpose

This study investigates how organizations in Brazil address sustainability concerns through collaborative governance efforts with strategic stakeholders. Organizations from New Zealand were considered as benchmarks for comparison.

Methodology/approach

This study is based on a qualitative exploratory research, supported by semistructured interviews. Ten organizations are interviewed, five from each country. Thematic analysis is used to analyze the interview data. Central management practices adopted by organizations are presented, and the goals, benefits, and limitations associated with collaborative initiatives are investigated.

Findings and practical implications

The findings reveal that organizations in Brazil and in New Zealand are employing similar management and sustainability practices. Companies in both countries observe that collaborative efforts with strategic stakeholders improve their ability to meet market demands and jointly develop innovative solutions toward sustainability goals while exchanging knowledge and enhancing their operational effectiveness. Organizations perceive a number of tangible and nontangible value creation outcomes from sustainability practices, such as brand and reputational gains, improved supply chain management, and risk management attainments. The results also present limitations, such as internal limitations of organizations concerning how their executives and general staff incorporate sustainability issues into their organizations’ strategic planning and operational decisions.

Originality/value of paper

Market pressures toward greener and more responsible operations equally affected organizations in both countries, without differentiation in operation between an emerging country such as Brazil and a developed country such as New Zealand. Directions for future research are presented. These are based on how organizations measure sustainability outcomes of management practices and collaborative alliances, and how organizations map upcoming market demands and opportunities to deliver more value to society as the sustainable development debate continues to evolve.

Details

Corporate Social Responsibility and Sustainability: Emerging Trends in Developing Economies
Type: Book
ISBN: 978-1-78441-152-7

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Article
Publication date: 18 May 2021

Sara Hajmohammad, Anton Shevchenko and Stephan Vachon

Firms are increasingly accountable for their suppliers' social and environmental practices. Nonmarket stakeholders nowadays do not hesitate to confront buying firms for…

Abstract

Purpose

Firms are increasingly accountable for their suppliers' social and environmental practices. Nonmarket stakeholders nowadays do not hesitate to confront buying firms for their suppliers' misconducts by mobilizing demonstrations, social media campaigns and boycotts. This paper aims to develop a typology of response strategies by targeted firms when they face such contentions and to empirically investigate why these strategies vary among those firms.

Design/methodology/approach

Drawing on social movement and stakeholder salience theories, the authors develop a set of hypotheses linking their typology of four response strategies to three key contextual factors – nonmarket stakeholder salience, nonmarket stakeholder ideology and the target firm reputation – and examine them using a vignette-based experiment methodology.

Findings

The results suggest that nonmarket stakeholder salience significantly impacts the nature of response (reject or concede), whereas the nonmarket stakeholder ideology is significantly related to the intensity of response (trivial or vigorous). Interestingly, the firms' reputation was found to have no significant effect on their response strategy when they faced stakeholder contentions.

Originality/value

This paper adds both theoretical and methodological value to the existing literature. Theoretically, the study develops and tests a comprehensive typology of response strategies to nonmarket stakeholder contentions. Methodologically, this study is original in leveraging a vignette-based experiment that allows establishing causal factors of response strategies following a supplier sustainability misconduct.

Details

International Journal of Operations & Production Management, vol. 41 no. 8
Type: Research Article
ISSN: 0144-3577

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Article
Publication date: 25 September 2007

Ni Putu S., G. Jan van Helden and Sandra Tillema

This paper aims to explore the influence of specific characteristics of the public sector in developing countries (i.e. a low‐institutional capacity, a limited involvement…

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3522

Abstract

Purpose

This paper aims to explore the influence of specific characteristics of the public sector in developing countries (i.e. a low‐institutional capacity, a limited involvement of stakeholders, and high levels of corruption and informality), and of reforms of this sector, on public sector performance measurement (PSPM).

Design/methodology/approach

Based on a review of prior literature, the paper develops understanding of the demand for and supply of performance information in developing countries, and of changes in this area.

Findings

The paper argues that public sector organisations in developing countries are likely to face an unbalanced position, i.e. disequilibrium between the demand for and supply of performance information. More precisely, the public sector reforms – which are partly stimulated by a growing involvement of some stakeholders – lead to an increasing demand for performance information but, because of the low‐institutional capacity and the high level of corruption, this increasing demand is not always followed by a sufficient supply of performance information. This leads to an “unsatisfied demand” position.

Research limitations/implications

The paper concludes with an overview of issues related to PSPM in a developing country context that require further investigation.

Practical implications

The arguments presented in this paper are summarised in an overview of factors that influence the demand for and supply of performance information in the public sector in developing countries. This overview might be helpful to those who are involved in the design of performance measurement systems in these countries.

Originality/value

So far, relatively little is known about PSPM in a developing country context. This paper is an attempt to fill this gap.

Details

Journal of Accounting & Organizational Change, vol. 3 no. 3
Type: Research Article
ISSN: 1832-5912

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Article
Publication date: 4 November 2020

Rim Ghezal and Romdhane Khemakhem

This study aims to develop a conceptual model to examine the impact of four organizational factors (expatriate managers, stakeholder engagement, corporate social mission…

Abstract

Purpose

This study aims to develop a conceptual model to examine the impact of four organizational factors (expatriate managers, stakeholder engagement, corporate social mission and demand management) on the social response activities and their subsequent effect on corporate social performance among subsidiaries of multinational enterprises (MNEs) in Tunisia, characterized as a small African economy.

Design/methodology/approach

This study uses data collected from 115 subsidiaries established in an African country – Tunisia. It also applies a partial least square regression to test the hypotheses proposed in a comprehensive framework.

Findings

This study reveals that each of these factors, with the exception of expatriate managers, is found to positively influence the adoption of social response activities by MNE’s subsidiaries. In addition, involvement in such activities is also important in enhancing social performance concerning employees and customers.

Originality/value

Despite years of encouragement from scholars and theorists, studies across Africa have generally shown no interest in corporate social response as a strategic process that safeguards the well-being of host society. This paper proposes a comprehensive model for identifying the antecedents and one consequence of corporate social response activities of MNE’s subsidiaries. Stakeholder theory is used as a theoretical lens to develop a corporate social response framework.

Details

Review of International Business and Strategy, vol. 31 no. 1
Type: Research Article
ISSN: 2059-6014

Keywords

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