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Purpose – The aim of this paper is to examine the relationship of the efficient management of shareholder value as the main objective of corporate governance systems with stakeholder theory.

Design/Methodology – The study uses data from 29 emerging market economies from 1997 to 2006. In order to control possible endogeneity issue, generalized two-stage least squares (G2SLS) and generalized method of moments (GMM) estimation techniques were conducted using country-level panel data.

Findings – The results provide evidence that the efficient management of shareholder value is strongly associated with managers' credibility, social responsibility, employment, and customer satisfaction, suggesting that emerging market economies should consider the interests of stakeholders for the efficient management of shareholder value.

Originality/Value – This is the first study of its kind that attempts to explore the association of the efficient management of shareholder value with country-level determinants of stakeholder theory.

Research Limitations/Implications – The lack of sufficient data is a major problem in international studies. This study also has some limitations in this respect as some emerging economies have not been included in the sample.

In this paper, we contribute to the understanding of how entrepreneurs can deploy their values to enable joint action of heterogeneous stakeholders. Such an understanding forms a critical endeavor to tackle grand challenges adequately. Building on sensegiving research, we conducted a single-case study of an entrepreneurial initiative that tackles gender inequality in Lebanon which has been successful in mobilizing heterogeneous stakeholders who ordinarily would not collaborate with each other. We find that the values of the founders were pivotal for the initiative’s success as those values activated latent values of stakeholders through processes of contextualization and enactment. We subsume these processes under the label value-driven sensegiving. As a result of value-driven sensegiving, heterogeneous stakeholders could make sense of the founders’ aspirational vision and the role they could play in it, which paved ways for tackling grand challenges collaboratively. Our study provides insights into the centrality of values for mobilizing heterogeneous stakeholders across boundaries. Therefore, it contributes to the body of work on sensegiving, societal grand challenges, and new forms of organizing.

This chapter suggests that there are at least five main challenges to the development of stakeholder theory as it currently stands. We need more research on understanding what counts as the total performance of a business; accounting for stakeholders rather than accounting only for investors; explaining real stakeholder behavior; formulating smart public policy given stakeholder theory; and rethinking the basics of ethical theory. The chapter explains the issues involved in each challenge and suggests ways to meet the challenge. It is a preliminary report of research in progress as well as a blueprint for how others may join the conversation to develop a more useful stakeholder theory.

In this paper we propose a typology of firm-stakeholder relationships based on four different states of consumption, leading to a new model of business commitment to responsible consumption. In developing this typology, we apply a physiological theory of consumption to define business as a nexus of activities capable of producing four different types of value: subsistence, growth, indifference and excess. The model represents a more coherent conceptualization of business management, drawing upon long-term multi-dimensional value management in firm-stakeholder relations. Thus, in our model, we establish normative connections between value creation and responsible consumption, and indicate more specific measures of value creation for stakeholders, by promoting subsistence and growth, and discouraging indifference and excess. We are thus taking value creation stakeholder theory one step further, by exploring how different levels of value or utility could inform integrative, convergent value creation processes within the firm as a network of stakeholders.

Organizations are increasingly required to take up extended responsibilities for social and environmental outcomes, including in global value chains. To address these challenges, the organization must call upon stakeholders to engage, contribute, and innovate, and in turn, this requires the organization to have a stronger social basis for its relationships. An integrative model of global value chain management based on social cooperation shifts the focus from corporate reputation to value chain reputation, from a firm-centric view of corporate reputation to a multistakeholder conception of value chain reputation. This approach conceptualizes reputation as a dynamic and potentially vulnerable organizational feature which cannot always be managed by public relations but requires a more stable notion grounded in something more permanent in the organization’s character, history, and the quality of its relationships with stakeholders. We consider the prospects for attending to organizational integrity as a stabilizing force for its public reputation. Integrity may be adopted as a hypernorm for motivating stakeholders who share a concern for the organization’s reputation. Co-creating reputation depends upon a social bond of cooperation developed by stakeholders caring about the organization and in turn, the organization caring about its stakeholders. This socialized understanding of reputation-building is grounded in an ethic of care and manifested through joint purposes, boundary-crossing processes, collaboration practices, and a division of labor into which value chain members are integrated and brought into relation with one another. We propose a model of global value chain management that discusses organizational capabilities required for such an approach.

This chapter assembles the key literature on value creation for consideration in relationship to stakeholder theory. The literature review identifies and explains the core topics concerning value creation and related ideas. The purpose is to stimulate research into the theory, practice, and social consequences of value creation in a stakeholder management framework. The construct of “value” lacks theoretical precision and empirical verification. The most fundamental and disputed question addressed is which value approach for the firm best contributes to overall (aggregate) social welfare. The vital issue is whether the managerial stakeholder theory is superior, at long-run value creation for multiple stakeholders including society at large, to the conventional agency theory. Business executives and directors are the ones who choose between agency and stakeholder approaches to management. Their actions influence organizational and social outcomes. Research is limited to a literature review, followed by a discussion of the likely role of value creation theory in future stakeholder research. The chapter first defines value. The basic approach is then to focus on key topics in the relevant literature. The last section addresses the role of value creation theory in future stakeholder research.

This chapter explores the strategic responsiveness of commodity multinationals operating in developing countries to the uncertainties raised by the emergent European Union (EU) sustainability regulation. The study applies deductive theory triangulation to derive five response propositions, subsequently contrasted with inductive insights from an exploratory single-case study. The research involves in-depth interviews with a mix of senior and middle management and numerous external stakeholders. Empirical findings are discussed through storytelling and retrospective sensemaking and cross-checked against corporate documents, archive material, and online articles for added validation. This chapter concludes that an authentic commitment to corporate social responsibility and creating shared value can enhance the multinational enterprise (MNE)’s resilience and responsiveness to regulatory uncertainty, especially when combined with early signal scanning and real options reasoning. Through varied, first-hand insights, the case study demonstrates the role of reputation, core values, and ethical leadership in support of effective stakeholder engagement capabilities and the MNE’s ability to develop viable collaborative solutions to uncertainties implied by evolving sustainability regulation and stakeholder expectations. Taking an evolutionary view, this chapter introduces a process perspective on sustainability transition, relevant to firms seeking a shift in focus from mere compliance toward strategic responsiveness founded on adaptability and renewal.

Co-creation of knowledge offers significant opportunities for innovation. This chapter seeks to gain understanding of the process of co-creation of knowledge for innovation and public relations in multi-stakeholder projects by exploring current insights in academic literature. The research questions look at how co-creation of knowledge for innovation has been investigated in the scholarly literature; the roles of end-users; and the modes and challenges of end-user participation and in collaboration relating to communication.

The method of this chapter is a structured literature review, following a series of rigorous steps: a search of databases, analysis of 33 articles found, summarising relevant content using a data extraction table and a data extraction continuum as analysis tools to show the range of projects discussed in the literature to create a comprehensive overview.

The findings indicate that multi-stakeholder networks can be structured for different aims. In the articles found different types of projects were investigated. Four categories of projects were found: (1) co-creation projects benefiting one company; (2) co-creation projects benefiting business-to-business value chain networks; (3) co-creation projects benefiting public entities; and (4) co-creation projects benefiting innovation network stakeholders.

Complexity is highest for multiple stakeholder co-creation projects benefiting innovation network stakeholders, where the roles between stakeholders are fluid and changing constantly. Solving common issues motivates the stakeholders to collaborate and build trust. Open innovation environments may facilitate communication and interaction.

Co-creation of knowledge requires intensive collaboration. Knowing the main challenges to address will help the functioning of co-creation collaboration networks and their public relations.

To study the values espoused by top MNEs operating in Colombia, through their vision and mission statements, in order to interpret their ethical orientation and to examine their concern toward diverse stakeholders.

Content analysis – an analytical framework was crafted from the literature review, while allowing room for emergent phenomena. Thus a combination of deduction and induction was enacted.

Most values are either teleologically oriented or grounded in deontological values, with a significant amount of values that could be related to a virtue ethics. Regarding stakeholders, narrow definitions tend to prevail.

The comparability of the vision and mission statements could be affected because sometimes they are offered at the national level and others at corporate level.

By offering a critical regard at the values that are publicly espoused by some of the most influential companies in Colombia, we enhance the comprehension of the prevailing ethical environment and the compatibility with the principles of the Global Compact.

We have studied key actors in a growing emerging market, which could advance Global Compact principles. Besides we have crafted a pedagogic and systemic prism through which values can be taught and thought. Thus, the methodological and theoretical framework facilitates subsequent empirical research, both in comparative and longitudinal ways.