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This article explores Nordic countries’ and companies’ sustainability practices. It explores how nations like Denmark, Finland, and Sweden and companies such as Novo Nordisk and Ørsted achieve top sustainability rankings through their distinctive approach to stakeholder cooperation. It discusses the historical and cultural context that has shaped the Nordic approach, emphasizing the importance of long-term vision, stakeholder engagement, and cooperative strategies. It provides insights into how these practices contribute to achieving sustainable development goals and offers valuable lessons for global businesses seeking to integrate sustainable practices into their operations. [ABSTRACT FROM AUTHOR]

We introduce a novel stakeholder-oriented framework that highlights variance in the application and expression of gender bias in the upper echelons. Directed by their relationship with the firm's leadership, we theorize that stakeholders' appraisals of top female leaders map onto a categorical and complex continuum. At the "categorical" end of this continuum, stakeholders neither have access nor are attentive to capability cues from the leader, increasing their reliance on stereotypes and gender biases in their leader evaluations. At the "complex" end of the continuum, stakeholders have access and are attentive to capability cues from the leader, decreasing their reliance on stereotypes and increasing their ability to accurately evaluate the leader. Between these ends, stakeholders evaluate female leaders by applying stereotypes and striving for accuracy to varying degrees. Each region on this continuum is linked to an array of behavioral responses, directed by stakeholders toward a target leader, that differ in valence and intensity. Our framework has significant implications for understanding a variety of social biases beyond gender, and enables the development of tailored strategies that can be used to facilitate accurate leader evaluations by all stakeholders. [ABSTRACT FROM AUTHOR]

We develop a stakeholder theory of corporate governance grounded in classical property rights theory, adopting the view that governance should help free individuals to maximize their collective welfare. In contrast to the agency view of corporate governance, we submit that the central problem in corporate governance is to devise coalitional contracting solutions to the collective action problems inherent in team production and team innovation. Agency problems and other contracting problems resulting from shirking, hold-up, market power, and externalities are best understood in this context. We develop design principles for the allocation of property rights to mitigate each of these contracting problems by reducing stakeholders' vulnerabilities to opportunistic behaviors. We extend earlier efforts to build a stakeholder theory of corporate governance by considering a more comprehensive set of transaction problems and analyzing the comparative efficiency of different governance arrangements for different types of firm–stakeholder relationships and different economic contexts. One conclusion from our theory is that giving primacy to shareholders, or any other group of stakeholders, is a comparatively inefficient solution to governing the modern global and knowledge-driven corporation. We discuss the implications of our theorizing for the debate about the purpose of the firm. [ABSTRACT FROM AUTHOR]

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. [ABSTRACT FROM AUTHOR]

This study delves into the relationship between green improvisational behavior (GIB), environmental orientation (EO), a green creative climate (GCC), and how they influence the environmental (EP) and social performance (SP) in the hotel industry. Through the perspective of stakeholder theory, the study examines how these factors work together to cultivate an atmosphere. The data was carefully collected through surveys at Pearl Continental Hotels & Resorts branches, a known chain of luxury hotels in Pakistan. Using Structural Equation Modeling for analysis, the study reveals insights for the hospitality industry in promoting a culture that encourages innovative and sustainable practices through environmentally friendly actions. By understanding what drives the development of an environment, hotels can create an organizational culture that supports eco‐friendly initiatives. Additionally, this research contributes to existing knowledge by investigating the role of focus in effectively implementing and utilizing practices that promote a green creative climate for improved environmental and social performance within the hotel industry. The results provide implications for practices within hotels and offer theoretical perspectives on the factors driving sustainability efforts in this sector. [ABSTRACT FROM AUTHOR]

This study explores the relationship between "ownerless" companies and environmental performance in the absence of actual controllers. We argue that companies lacking actual controllers may opt to enhance their environmental performance to address external doubts about their governance legitimacy. Opting for an empirical analysis approach, we devised a theoretical framework, and executed a regression analysis on a sample of 6676 listed companies within China's A-shares market spanning from 2011 to 2021. The findings corroborated our hypothesis that "ownerless" companies are significantly positively related to environmental performance. Furthermore, we find that the top management team (TMT) stability negatively moderates the "ownerless" companies—environmental performance relationship, while external stakeholder environmental pressure (government environmental governance and public environmental attention) positively moderates this relationship. These findings contribute to the research on stakeholder theory and the growing literature on emerging economies. They also provide insights in practice for policymakers on how to properly perceive the phenomenon of "ownerless" companies and promote their environmental performance through institutional design and policy guidance. [ABSTRACT FROM AUTHOR]

Prior studies have examined various economic, environmental, and social impacts of the London congestion charge (LCC). However, few studies have investigated how the Transport for London (TfL) managed the LCC in all stages of its policy. Without active, strategic management of policies, stakeholders affected may doubt the policies' legitimacy and reduce policy effectiveness. Thus, examining the means utilized to achieve effective policy management is critical and can potentially influence the development and management of future policies. This study adapts Mitchell et al.'s stakeholder typology to study how the TfL, as part of the management of, and as the dominant stakeholder in, environmental regulations in London, strategically managed the LCC via their own efforts to exert power, establish legitimacy, and claim urgency. Relying on Yin, we analyze publicly available data to show how the TfL actively managed the LCC to ensure its sustainability as policy. The TfL primarily used tactics to maintain and enhance the LCC's legitimacy with authoritative power and fears of unproven urgency to influence other stakeholders. Results have practical implications for policymakers contemplating policy reforms and shed additional light on less‐discussed latent factors regarding policy management. This study contributes to the literature by applying stakeholder theory to the domain of policy reform, administration, and management. Our findings have policy implications as policymakers may benefit from learning the tactics examined in this study to assess their policy management and administration. Lastly, through our discussion and conclusions, we reflect on our findings to encourage research on policy management. [ABSTRACT FROM AUTHOR]

How can innovative solutions to address societal grand challenges be cultivated in a pragmatic and impactful way? In this article, we propose the "lean impact start-up" framework, which integrates the principles of the lean start-up methodology with fresh perspectives from new stakeholder theory—and specifically, stakeholder governance. The lean impact start-up framework is characterized by its experimental and learning-oriented nature and consists of a three-step process: value search, value creation, and value distribution. For each step, we propose a key mechanism and chart pathways for future research. At its core, the lean impact start-up framework differs from other start-up frameworks by an active consideration of diverse primary stakeholders and an expanded focus encompassing both economic and noneconomic outcomes. This framework serves as a transformative bridge that helps to close the divide between scholarly research and tangible, real-world impact. [ABSTRACT FROM AUTHOR]

Nowadays, agriculture businesses have been significantly impacted by rapid global changes, compelling the agro-industry to adopt sustainable development practices to remain resilient. Moreover, the application of stakeholder theory has become essential in business management to achieve inclusive growth and fulfill sustainable business. Understanding the interlink between stakeholder pressure and the motivation to transform an enterprise's practices into sustainable development is imperative. Therefore, this study aims to evaluate the direct pressure of stakeholder groups on sustainable practices in agriculture enterprises in Thailand through a questionnaire survey. This paper focused on the influence of primary and secondary stakeholders and evaluated the weighting of sustainability practices. The survey was conducted on employees who work in enterprises that apply Thailand's Sufficiency Economy Philosophy (SEP). The research adopted the regression and information entropy methods for result analysis. The results showed that employees, shareholders, and competitors are significant stakeholder groups that drive sustainable capital covering economics, nature, society, and human capital. Last, stakeholder management is an outstanding practice in a SEP thinking enterprise. Concurrently, human capital is the highest priority to fulfill this alternative pathway to be successful in enterprise sustainability. [ABSTRACT FROM AUTHOR]

Social media transform and complicate nonprofit organizations' (NPOs) traditional communication to engage and lead stakeholders for collective action. Stakeholders can self-organize for connective action on social media and form stakeholder networks of varied potential and structures that NPOs may leverage for collective goals. Facing such networks, NPOs may communicate in diverse ways to accommodate and take advantage of the diverse stakeholder networks. Through two surveys conducted with 375 (Study 1) and 74 (Study 2) NPOs, this study suggests that NPOs diversify their communication to leverage different potential from each stakeholder network by crafting different types of social media activities based on their perception of different networks. This study develops a comprehensive theoretical understanding of NPOs' transformed and complex communication strategies for stakeholder engagement in driving social change, opening up new avenues for organizational communication and collective and connective action scholarship. [ABSTRACT FROM AUTHOR]

In transitional economies, contract farming is widely recognized as a means for addressing numerous market failures affecting small farmers. Reviewing the scholarship on contract farming, we show that its traditional understandings have been framed by the narratives of transaction cost economics and power dynamics. We critically evaluate these narratives and demonstrate how stakeholder theory, with its relational understanding of business, offers a more comprehensive understanding of contract farming. We argue that a stakeholder theory perspective underscores the trust-based and collaborative nature of successful contract farming arrangements. It highlights the importance of informal and moral stakeholder relationships that compensate for the limitations of weak enforcement mechanisms and inadequate legal frameworks in transitional economies. This way, a stakeholder theory perspective on contract farming highlights its strategic management and business ethics dimensions, offering valuable guidance for cultivating successful stakeholder relationships. [ABSTRACT FROM AUTHOR]

This article analyses the indispensable role of sustainable agricultural intensification practices (SAIP) in meeting the needs of a burgeoning human population with limited planetary resources and examines the role of various stakeholders in the adoption of these practices by local farmers. The study setting is the Upper West, a semi-arid region of Ghana. The study employs a stakeholder salience theory and a mixed-method design. Firstly, qualitative data were collected and analysed as a basis for formulating a structured questionnaire administered to beneficiary farmers, which were then analysed using marginal effects from logistic regression. Notably, the study found four sustainable crop cultivation practices and three eco-friendly crop storage methods promoted in the area. Furthermore, the engagement of stakeholders like selected farmers, Traditional authorities, and implementing NGOs had statistically significant effects on the adoption of SAIP. However, these effects were smaller when compared to the direct involvement of all beneficiary farmers in the planning and implementation of the intervention. This suggests that while technocrats and authorities are important, they alone cannot achieve the desired impact of development interventions. Beneficiary farmers are the most critical stakeholders in adopting and promoting SAIP. The article further proposes a conceptual framework for implementing SAIP in agro-based rural communities. This research therefore underscores the importance of sustainable agricultural intensification practices in a resource-constrained world and emphasizes the central role of beneficiary farmers in driving the success of such initiatives. [ABSTRACT FROM AUTHOR]

Major railway projects are large-scale, complex systems involving multiple stakeholders, and the risks during the construction process can be multifaceted and constantly evolving. To enhance the risk prevention and control capabilities in such projects, according to resilience theory, the study proposed a resilience management model based on risk prevention and control and outlined a framework for resilience construction management mode in major railway resilience construction projects. Using stakeholder theory, an integrated virtual organizational structure model for major railway construction was introduced. The resilience construction management mode combined organizational management and intelligent project management, embedding risk prevention and control into the organizational management system. This approach enhanced the resilience of organizational structure, strengthened its capacity to respond to risks and challenges, and leveraged intelligent technologies to boost collaborative capabilities. Additionally, the operational mechanism of resilience management was analyzed, which was governed by contractual, administrative, and trust-based relationships. The research results provide theoretical insights and decision-making strategies for risk prevention and control in major railway projects. [ABSTRACT FROM AUTHOR]

Over the past three decades, global tourism has significantly contributed to the world economy, driven by factors such as globalization, technological advancements, and rising disposable incomes. However, alongside these economic benefits, tourism's environmental impact remains a pressing concern, involving resource depletion, pollution, and substantial carbon emissions. Despite extensive research on these issues, there remains a gap in the literature regarding how state social responsibility and sustainability can be effectively integrated into tourism policies, particularly in prominent tourist destinations like Spain. This study addresses this gap by employing a combined qualitative (content analysis) and quantitative (survey) approach to explore the dual role of tourism in economic growth and environmental sustainability. Focusing on Spain as a case study, the research highlights both the challenges and opportunities associated with sustainable tourism practices. It examines the influence of factors such as the host country's image, quality of life, the home country's purchasing power parity (PPP), and the geographical distance between home and host countries on tourists' destination choices within the framework of Stakeholder Theory. The novelty of this research lies in its comprehensive analysis of these factors, offering critical insights for researchers and policymakers striving to balance tourism growth with environmental sustainability globally. [ABSTRACT FROM AUTHOR]

This study aims to examine the impact of corporate social responsibility (CSR) and digital transformation (DT) on green innovation (GI) among manufacturing SMEs in Yemen, in addition to exploring the moderating role of DT in the relationship between CSR and GI. To this end, data collected from 224 SME managers/owners in Yemen were analyzed using structural equation modeling (SEM-PLS) via SmartPLS. The results indicate that CSR significantly enhances GI among manufacturing SMEs. Furthermore, DT not only has a direct positive effect on GI but also moderates the relationship between CSR and GI, amplifying the impact of CSR practices. This suggests that DT acts as a catalyst, strengthening the effects of CSR on GI. These results are expected to enlighten managers of manufacturing SMEs in least-developed countries on the importance of integrating CSR with DT strategies to improve GI capabilities. Therefore, policymakers should support this integration to foster sustainable development and enhance SMEs' performance. Overall, our findings contribute to the literature by combining CSR and DT within a framework that elucidates their interaction and impact on GI. It provides new insights into how DT can enhance CSR-driven GI in less developing countries. Article Highlights: CSR and digital transformation have a strong impact on green innovation. Digital transformation acts as a moderator between CSR and green innovation. The resource-based view (RBV) and stakeholder theory were useful to explain green innovation. [ABSTRACT FROM AUTHOR]

The objective of this study is to analyze how knowledge flows within the new energy vehicle industry alliance impact technology commercialization. The findings will provide valuable guidance for practitioners, managers, and policymakers who seek to rethink, reformulate, and reshape organizational processes in alignment with the United Nations' 2030 Agenda. The commercialization of new energy vehicle technology holds strategic importance for enterprises and contributes to sustainable development by promoting green and low-carbon transformation. From the perspective of the innovation ecosystem and stakeholder theory, this study further investigates the under-researched theme of knowledge flow in the new energy vehicle industry. According to the author's knowledge, this is the first study to analyze the practical application of sustainable development goals under the perspective of stakeholder theory, based on panel data from seven provinces and cities in China, using methods such as index system evaluation and regression analysis. Based on the research findings, technological cooperation within knowledge flow and foreign direct investment would promote the commercialization of technology within the industry alliance. Additionally, the maturity of the innovation ecosystem within the industry alliance has a positive moderating effect on the relationship between knowledge flow and technology commercialization. [ABSTRACT FROM AUTHOR]

The literature on stakeholder theory has largely ignored the difficult and central issue of how judges and firms should resolve disputes among stakeholders. When the issue is addressed, focus has largely been on the potential for management to use stakeholder theory as cover for rent‐seeking or on disputes between classes of stakeholders. Sharply underappreciated is the potential for disparate interests within a stakeholder class. That potential is particularly acute due to a (largely education‐driven) stark and growing class divide in the United States. There is a substantial difference between the interests of a highly educated professional and managerial elite and a pink‐collar and blue‐collar working class who mostly do not hold 4‐year degrees. Despite their smaller numbers, the professional and managerial elite will frequently win out in intra‐stakeholder disputes with working‐class stakeholders due to their greater status, power, and influence. Because this class divide is cultural, social, and political, as well as economic, these disputes will go beyond financial pie‐splitting to culture war issues. This threatens to be destabilizing for both the republic and individual firms and undermines both the practical and ethical arguments for the stakeholder theory. [ABSTRACT FROM AUTHOR]

This paper aims to examine the intellectual structure of sustainable business development studies and to gain an in-depth perspective on its future development. To achieve the research objectives, we applied methods of bibliometric analysis (WoS tools, co-citation analysis, co-word analysis, and bibliographic coupling) to the dataset extracted from the Web of Science. The main research domains of the researched field were distinguished based on the cluster interpretation. Specifically, both co-word analysis and bibliographic coupling demonstrated the overlap between the two research domains: "Sustainable Development and Entrepreneurship" and "Corporate Social Responsibility and Stakeholder Theory," while the "Sustainable Development: Theoretical Foundations of the Research" cluster obtained via bibliographic coupling partially converged with the "Sustainable Development and Entrepreneurship" cluster received from the co-word analysis. However, the clusters "Company Performance and Innovations" extracted from co-word analysis and "Competitive Analysis and Sustainable Development" obtained from bibliographic coupling did not coincide. Furthermore, we concluded that over the last 40 years, sustainable business development studies have gone through the process of structuring induced by global changes in business and the economy. [ABSTRACT FROM AUTHOR]

This paper aims to explore whether the trend of digital transformation is driving companies to engage in environmental, social, and governance (ESG) practices. The impact of strategic transformation on firms is all‐encompassing, making it difficult to capture the mechanisms of impact on corporate ESG practices. To this end, we construct a new theoretical framework that combines slack resources and stakeholder theory. This framework attributes the heterogeneity of ESG practices to differences in the ability and willingness of companies. Using data from Chinese listed companies, we find that the digital transformation is improving ESG performance. The mechanism is that digital transformation increases the availability of long‐term slack resources and strengthens the connection with stakeholders. However, there is insufficient evidence that digital transformation contributes to greater transparency in corporate disclosure. We also find that this effect is larger for firms with less risk‐responsiveness and firms with international connections, but smaller for firms with political connections. Our findings affirm the advantages of contemporary trends in corporate digital transformation for ESG practices and offer a new theoretical framework to investigate the factors influencing ESG practices. [ABSTRACT FROM AUTHOR]

This paper investigates whether and to what extent circular economy performance affects the financial performance of a global sample of listed agri‐food firms. Furthermore, the potential moderating role of stakeholder engagement in empowering this relationship has been tested. A circular economy performance index has been developed based on Environmental Social and Governance scores reclassified in the light of the reuse, reduce, recovery and recycling (4R) paradigm. Then, a multivariate regression model from 2015 to 2022 has been carried out. A broader theoretical framework has been adopted, combining the natural resource‐based view and stakeholder theory. The results show a positive relationship between the circular economy performance, the financial performance and the boosting function played by stakeholder engagement. The study findings provide stimuli for academics and managers to reflect on the profitability of the circular economy and the pivotal role of stakeholder engagement in giving a significant impulse to the circular transition. [ABSTRACT FROM AUTHOR]

The aim of the study is to examine the impact of society's economic well-being determinants - above and beyond the firm-specific and macroeconomic determinants - on firm profitability in Poland. Based on stakeholder theory we hypothesized that the economic well-being of society can influence firm performance. Therefore, we included real wage and salary growth, internal migration, international migration, and natural increase variables in the regression models. We applied four models with different sets of variables using pooled ordinary least square regression, as well as fixed and random effects regressions with robust standard errors clustered at the firm level. The dataset covers the period from 2004 to 2021, comprising 5400 firm-year observations from Poland in the wholesale and retail trade sector. We found that firm profitability generally increases with higher inflation and exchange rate depreciation. Moreover, in models including society's economic well-being variables, GDP growth is no longer a significant determinant of firm profitability. Most importantly, the study demonstrates a positive relationship between real wage and salary growth and firm profitability. We also found that international migration is negatively associated with firm profitability. Regarding natural increase, the study suggests that it has a positive effect on return on equity, but not on return on assets. [ABSTRACT FROM AUTHOR]

The rapid advancement of information technologies, such as the Internet of Things and big data, has created favorable conditions for digital transformation, which has main effects on the sustainable development of enterprises. Drawing upon stakeholder theory, this article employs text analysis to construct indicators for corporate digital transformation using data from A-share listed companies between 2015 and 2022. Meanwhile, ESG performance is utilized as a measure of corporate sustainable development. Through both theoretical inquiry and case study, this study investigates the influence of digital transformation on sustainable development in enterprises and arrives at the following conclusions: (1) Digital transformation exerts a substantial positive effect on the sustainable development of enterprises. Board diversity plays a moderating role in this relationship; age diversity and gender diversity weaken its promoting effect while experience diversity enhances its positive influence. These findings remain robust after conducting various tests to ensure validity and addressing endogeneity concerns; (2) Heterogeneity tests reveal that compared to non-state-owned enterprises and high-tech firms, digital transformation has a more pronounced promoting effect on sustainable development levels within state-owned enterprises and non-high-tech companies. This article offers novel research perspectives on how digitization drives corporate sustainability in the digital era while providing practical insights for companies aiming to achieve both digital transformation and sustainable development. [ABSTRACT FROM AUTHOR]

The aim of the study is to examine the impact of society’s economic well-being determinants – above and beyond the firm-specific and macroeconomic determinants – on firm profitability in Poland. Based on stakeholder theory we hypothesized that the economic well-being of society can influence firm performance. Therefore, we included real wage and salary growth, internal migration, international migration, and natural increase variables in the regression models. We applied four models with different sets of variables using pooled ordinary least square regression, as well as fixed and random effects regressions with robust standard errors clustered at the firm level. The dataset covers the period from 2004 to 2021, comprising 5400 firm-year observations from Poland in the wholesale and retail trade sector. We found that firm profitability generally increases with higher inflation and exchange rate depreciation. Moreover, in models including society’s economic well-being variables, GDP growth is no longer a significant determinant of firm profitability. Most importantly, the study demonstrates a positive relationship between real wage and salary growth and firm profitability. We also found that international migration is negatively associated with firm profitability. Regarding natural increase, the study suggests that it has a positive effect on return on equity, but not on return on assets.

Purpose: Based on stakeholder, agency and institutional theory, this study aims to examine the role of institutional ownership in the relationship between environmental, social and governance practices and CEO compensation. Design/methodology/approach: Utilizing a fixed-effect panel regression analysis, this research utilized a panel data approach, analyzing data spanning from 2014 to 2021, focusing on US companies listed on the S&P500 stock market index. The dataset encompassed 219 companies, leading to a total of 1,533 observations. Findings: The analysis identified that environmental scores significantly impact CEO equity-linked compensation, unlike social and governance scores. Additionally, it was found that institutional ownership acts as a moderating factor in the relationship between the environmental score and CEO equity-linked compensation, as well as the association between the social score and CEO equity-linked compensation. Interestingly, the direction of these moderating effects varied between the two relationships, suggesting a nuanced role of institutional ownership. Originality/value: This research makes a unique contribution to the field of corporate governance by exploring the relatively understudied area of institutional ownership's influence on the ESG practices–CEO compensation nexus. [ABSTRACT FROM AUTHOR]

The article offers a comment on the article "Where do stakeholders come from?, " by Sharon A. Alvarez and Sybille Sachs, which appeared within the issue. The authors feel that stakeholder composition is a dynamic process that is generated through the actions of entrepreneurs. They suggest that the strategic management approach is limited and does not take into account the dynamic nature of stakeholder generation. The authors then present an entrepreneurial perspective on stakeholder theory, describing the bidirectional generation of stakeholders and the role of entrepreneurial choice in the formation of a firm's stakeholder composition.

Abstract The adoption of a stakeholder approach to public engagement within the public sector has been extensive. However, there remain critical gaps in the understanding of stakeholder participation arising from hidden disparities that contribute to unequal access to communication channels, information, and hence ultimately knowledge and decision making. The term “epistemic injustice” has been used to describe such inequality of access and consequently, the outcome that ensues. Epistemic injustice is much overlooked in stakeholder theory. This article shows how epistemic injustice can act as a barrier to effective stakeholder engagement and hence to successful public policy formulation and implementation. We use the case of vaccine hesitancy among Scotland’s African, Caribbean, and Black (ACB) communities to illustrate this problem of unequal participation. The study drew on primary data involving 85 participants and secondary data sources from extant literature and explored salient factors shaping barriers to vaccine uptake during the recent pandemic. The findings demonstrate how the failure to grasp epistemic injustice undermines the effectiveness of the stakeholder approach, even with the most well-intentioned efforts. We argue that epistemic injustice is a critical barrier to effective stakeholder approaches.

The article aims to discuss the phenomenon known as “diversity dishonesty” (term “smoke and mirrors” was coined by Stacey Morin as a metaphor of diversity dishonesty). Diversity dishonesty is defined as encapsulating a complex scenario wherein organizations outwardly portray a façade of commitment to genuine and quantifiable progress concerning diversity initiatives, while in practice, they manifest insincerity and disingenuousness. In recent years, diversity dishonesty has garnered substantial scholarly attention, particularly within organizational dynamics. This phenomenon is characterized by a superficial and performative engagement with diversity, creating the illusion of progress and dedication while failing to bring about substantive and meaningful transformations in diversity and inclusivity. The article presents the results of systematic literature review of peer-reviewed journals that analyzed diversity dishonesty in the organization, examine diversity dishonesty in organizations, to reveal a complex interplay of psychological, social, and organizational factors. Search engines provided by Marymount University Library and such resources as: ABI/INFORM Collection, Business Source Complete (EBSCO Host), Google Scholar, JSTOR and ProQuest Research Library were used. The research introduces an infinity loop framework that leverages accountability and transparency in conjunction with stakeholder theory. The article examines the following symptoms of diversity dishonesty within an organization: pluralistic ignorance, exclusion, othering, erosion of trust and morale, inconsistency between promotional material and lived experience, limited representation in leadership, microaggression, and tokenism. The article examines the following cascade of consequences of diversity dishonesty within an organization: legal risk, reputational damage, and stifled innovation and creativity. By shedding light on the intricacies of this phenomenon, this article offers valuable insights for organizations aiming to move beyond performative diversity efforts and genuinely foster diverse, equitable, and inclusive environments.

Abstract Complacency is almost archaic in the knowledge economy, because firms are overwhelmingly confronted with diverse expectations from better informed stakeholders, who pressure on societal issues amid shareholders’ calls for greater financial security. Similarly, there is a growing call for corporations to redefine their responsibilities to stakeholders, and to integrate socio-economic and environmental concerns into business processes and strategies in order to transparently impact on societies. In a bid to support mutually beneficial relationships, this paper shows how stakeholder theory proactively moderates the strength of CSR in social interactions, environmental protection, and sustainable development. It proposes a four-stage stakeholder dialogue ladder which attempts to synergize CSR, stakeholder and stakeholder theory based on the stages as defined by the firm’s extent of development, and her regularity and intensity of interaction with stakeholders. The paper argues that subject to the problem to solve, the languages of CSR and stakeholder theory are useful and that, the dichotomies of covering wrongdoing and creating falsehoods could be addressed when firms adopt stakeholder dialogue and collaboration that aid friendly CSR programmes. Thus, the relationship turns that of dyadic partnership, because corporations follow issue or purpose-based CSR programmes that create values that trickle to interdependent stakeholders. In sum, corporations need to continually get committed to environmentally-sensitive CSR since there is a strong relationship between CSR activities, stakeholders and actual performance.

When the stakeholder theory challenged the neoclassical shareholder theory, it was a step forward in the theoretical and practical debate about the role and responsibility of businesses in society and how wide the responsibility is. Today, neither of these theories go far enough to explain the responsibilities of businesses in society and neither do corporate social responsibility nor corporate sustainability given the complexity of the business environment in which companies operate and how far they are going, or how far they are pushed, to respond to grand challenges or the opportunities they may entail. The aim of this paper is to provide a theoretical exploration and a critical appraisal of the need for a paradigm shift from shareholders and stakeholders to future successors. This is grounded in a discussion about corporate social responsibility/corporate sustainability, and the relevance of environmental constraints, multilateral sustainability policies and pathways, and needs and requirements of corporate future successors that are important for businesses that want to prosper in the long-term. The findings suggest that forward-looking supranational political and economic unions, intergovernmental organizations, regional and local governments, and leading businesses have moved ahead of theory towards including intra- and intergenerational interests and the natural environment into their policies, regulations, and strategies. In doing so, they even go so far as to grant personhood to the natural environment, thereby recognizing the importance of the natural environment for their own and the prosperity of present and future generations who will be future successors of businesses. Consequently, the implication of the paper is to suggest a new theoretical lens which has a much wider scope than shareholder and stakeholder theories currently do, and a strategic roadmap, emphasizing the importance of future successors for corporate responsibility and successful business operations in the long-term and pinpoint ways forward in doing so. [ABSTRACT FROM AUTHOR]

This research examines the effect of ESG disclosure on the cost of capital for non-financial firms in the UK, indexed by the FTSE All-Share Index, during the period from 2014 to 2018. Using multivariate analysis with ordinary least squares (OLS), fixed effects, robust regression, and Tobit models, this research assesses the effect of ESG reporting, governance, and the cost of capital, including robustness checks using an alternative ESG indicator, the environmental pillar score. Contrary to expectations, ESG reporting is positively associated with the cost of capital. However, corporate governance moderates this relationship, weakening the positive correlation and reversing it to a negative association for firms with strong governance practices, consistent with the hypotheses. This research also finds that firm size, liquidity, profitability, and leverage, positively affect the cost of capital, while board size, independent board composition, audit committee independence, and auditor type do not significantly influence it. Notably, non-executive directors on the audit committee have a significant negative effect on the cost of capital. These findings are valuable for investors, companies, regulators, auditors, policymakers, and the academic and research community. Specifically, for investors, this study provides insights into how ESG disclosures can influence investment risks and returns, highlighting the importance of robust corporate governance. Companies can leverage these insights to enhance their governance practices and optimize their capital costs. Regulators and policymakers can use the findings to develop guidelines that encourage transparent ESG reporting and strong governance frameworks, thereby improving market stability and investor confidence. Auditors can utilize the results to better understand the effect of non-financial reporting on financial metrics, helping to provide more accurate audits and assessments. These findings inform investors, companies, regulators, auditors, and academia, in fostering a more sustainable and transparent financial environment. [ABSTRACT FROM AUTHOR]

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Rising expectations in society for moral brand behavior have increased the relevance of brand purpose communication on social media. Nevertheless, there is a lack of fundamental research in this area. This study therefore examines brand purpose communication on Twitter, particularly with regard to the values addressed and the communication strategies implemented by corporate brands as well as the corresponding user engagement. A quantitative content analysis of 30 corporate Twitter accounts from 10 industries (n = 6000) shows that brand purpose is communicated across all brands and industries. The values of solidarity and sustainability are in the foreground. In an industry comparison, the FMCG industry and the financial services industry communicate most frequently on brand purpose issues, whereas the media industry and the luxury goods industry do so only marginally. Corporate brands predominantly use information strategy to communicate their brand purpose, although the involvement strategy leads to more engagement. Overall, the analysis shows that the potential of brand purpose communication is not being exploited to the same extent in all industries. [ABSTRACT FROM AUTHOR]

This study aimed to identify the effects of primary and secondary stakeholders on social innovation practices in local markets by subsidiaries of multinational corporations (MNCs) and to confirm the link between social innovation and the subsidiaries' capacity to adapt to the local market. By adopting a stakeholder perspective as an overarching theoretical lens and collecting data from China—the world's largest emerging market—this study reveals the crucial catalytic role that most primary and secondary stakeholders play in enhancing social innovation by MNC subsidiaries in host countries. In addition, we provide strong evidence of a causal relationship between social innovation and adaptive capability in host economies. Our results contribute to current scholarship by identifying theoretical cornerstones and practical managerial implications of social innovation in emerging markets. [ABSTRACT FROM AUTHOR]

The adoption of a stakeholder approach to public engagement within the public sector has been extensive. However, there remain critical gaps in the understanding of stakeholder participation arising from hidden disparities that contribute to unequal access to communication channels, information, and hence ultimately knowledge and decision making. The term "epistemic injustice" has been used to describe such inequality of access and consequently, the outcome that ensues. Epistemic injustice is much overlooked in stakeholder theory. This article shows how epistemic injustice can act as a barrier to effective stakeholder engagement and hence to successful public policy formulation and implementation. We use the case of vaccine hesitancy among Scotland's African, Caribbean, and Black (ACB) communities to illustrate this problem of unequal participation. The study drew on primary data involving 85 participants and secondary data sources from extant literature and explored salient factors shaping barriers to vaccine uptake during the recent pandemic. The findings demonstrate how the failure to grasp epistemic injustice undermines the effectiveness of the stakeholder approach, even with the most well-intentioned efforts. We argue that epistemic injustice is a critical barrier to effective stakeholder approaches. [ABSTRACT FROM AUTHOR]

Triple Bottom Line (TBL) may be one of the best weapons in one of today's biggest business challenges, achieving sustainability. Despite the importance of the economic dimension of TBL for companies' competitiveness, financial sustainability remains undervalued in research and business management practises. Thus, there is a need to deepen the knowledge about the relationship between sustainable business practises and the economic performance of firms. This study aims to analyse the influence of the economic dimension of TBL on firm financial performance. Three multiple linear regression models were estimated by the generalised method of moments for a sample of 70,057 Portuguese companies grouped according to their size. The results reveal that the economic dimension of TBL influences the financial performance of companies in a positive way, both at the level of value creation and from the perspective of company continuity. The study uses accounting indicators as the representatives of the economic dimension of the TBL and its consideration in conjunction with the stakeholder theory. The use, monitoring, and evaluation of the financial indicators of value and continuity that translate the application of TBL in the financial performance of companies may lead them to achieve financial sustainability. [ABSTRACT FROM AUTHOR]

Ensuring optimum utilisation of the Earth's finite resources engenders the circular economy (CE) concept which has attracted the attention of policymakers and practitioners worldwide. As a bifurcated strategy which involves both scientific knowledge, advanced technologies and behavioural changes, the CE transition is sociotechnical in nature. Yet, prolific studies focus on scientific knowledge and technologies alone, while studies on promoting CE practices or built environment stakeholders' behaviour are limited. Using Stakeholder Theory, a comprehensive literature review on CE drivers was conducted. Through a questionnaire survey of professionals, key drivers identified were deployed to develop a 20-driver model for CE transition in the built environment. The model is relevant to policymakers and practitioners because it highlights essential drivers for optimum resource allocation. Moreover, the findings apprise policymakers of the drivers that pertain to key stakeholders (i.e., professional and higher educational institutions, society and clients, government and firms), thus stating the requirements for driving each stakeholder to achieve this sociotechnical transition. [ABSTRACT FROM AUTHOR]

Digital technologies can bring about fundamental changes in corporate processes, which may result in a shift from process innovation to digital process innovation. However, owing to resource constraints and various stakeholders, digital process implementation is extremely challenging for firms. Based on stakeholder theory, this study explores whether and how stakeholder pressure for digitalization can facilitate corporate digital process innovation and unravels the mediating effect of routine reconfiguration and the moderating effect of strategic flexibility. The findings from a survey of 351 firms prove that stakeholder pressure for digitalization can facilitate corporate digital process innovation via routine reconfiguration. Moreover, this study finds that increased strategic flexibility can strengthen the positive mediating effect of routine reconfiguration. The findings contribute to the deep understanding of digital process innovation and offer a boundary condition for the effectiveness of stakeholder pressure. [ABSTRACT FROM AUTHOR]

This paper aims to examine the impact of corporate governance practices on firm valuation in financial markets, exploring how governance quality influences market perception and investor confidence. The study focuses on the relationship between specific governance mechanisms--such as board structure, transparency, and shareholder rights--and their effect on firm valuation metrics. This paper synthesizes findings from empirical studies and theoretical models published in finance and corporate governance literature The findings underscore the importance of robust governance practices for firms seeking to enhance their market valuation and attract long-term investment. Practically, the study provides insights for policymakers on the need to strengthen governance regulations, particularly in emerging markets. Socially, the research suggests that enhanced governance fosters greater accountability, contributing to market stability and protecting stakeholders' interests. This paper adds to the limited body of research focusing on the valuation effects of governance in a cross-market context, offering a comprehensive overview of governance mechanisms and their impact on financial markets. It provides a valuable reference for future research on corporate governance and firm performance. [ABSTRACT FROM AUTHOR]

As the development of world-class eco-islands progresses, the homestay sector on Chongming Island has burgeoned, emerging as a pivotal catalyst for rural tourism and economic prosperity. This study, leveraging Chongming Island as a case study, systematically analyzes the spatiotemporal distribution of homestays across island-wide, township, and village scales, employing methodologies such as the spatiotemporal evolutionary tree model. It delves into the intricate systemic framework underpinning homestay development, elucidating the dynamics of interaction mechanisms. Furthermore, it examines the evolving roles of diverse stakeholders throughout various developmental phases, grounded in stakeholder theory. The study reveals that (1) Chongming's homestays on the island, townships, and village scales show very obvious agglomeration characteristics, mainly concentrated in the A-level scenic spots and in and out of the island traffic junction. (2) The growth of homestays in Chongming shows an increasing trend year by year, with the growth rate slowing down after 2020, and can be divided into four main phases, which are closely related to the construction phase of the eco-island. (3) The evolution of Chongming Island's homestay is a multifaceted natural–human system intricately shaped by a confluence of five interdependent subsystems: natural ecology, social culture, multiple stakeholders, geographical location, and transport infrastructure. At different stages of development, under the synergistic effect of multiple stakeholders, the homestays on Chongming Island eventually formed a governance structure led by the government and co-managed by the development company, external entrepreneurs, and local villagers. These insights not only augment the scholarly discourse on stakeholder dynamics within the homestay industry but also offer pragmatic enlightenment for strategic planning and the advancement of holistic urban–rural integration in Chongming and the broader Shanghai region. [ABSTRACT FROM AUTHOR]

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This paper proposes a model of sustainable human resource management (HRM) strategies and consequences by considering stakeholder theory. Qualitative research was conducted to answer research questions. This study uses a purposeful snowball sampling method to draw on in-depth interviews with 19 experts. Data were analyzed by three phases: open, central, and selective coding. The results categorize sustainable HRM strategies into four category of strategies relevant to employees (competence development, equality and diversity management, caring and support of employees, career planning, participation, work-life balance programs, ability to fulfill the psychological needs, and employees' health and safety management); environment and public sustainable HRM strategies (green job design, green human resource planning, green selection and employment, green performance evaluation and encouragement system; green training, and availability of job opportunity for locals); economic sustainability strategies (overall quality management, commitment of senior management to economic sustainability, cost improvement system, equipment efficiency, process and work-flow standardization and re-engineering); and general strategies regards to different stakeholders (conflict of interest management among different stakeholders, effective management of stakeholder support strategies, and considering stakeholders in decision-making). Moreover, the consequence of establishing stakeholder-oriented sustainable HRM is divided into four groups of individual level, environmental, organizational, and stakeholders relations consequences. [ABSTRACT FROM AUTHOR]

The literature has called on business and management scholars to help understand the global challenges we face and to find solutions. The prevailing narratives that have implicitly informed our understanding of business and management knowledge and practice as good need to be reimagined. We question whether our existing theoretical lenses, along with fundamental underlying assumptions about what constitutes labour, value and its creation, and the nature of assets, liabilities and materiality, act as a barrier to advancing business and management practice as a force for good and explore whether we need to go beyond applying existing theory to new research questions. Both Agency Theory and Stakeholder Theory have proven ineffective in aligning social and economic interests, while our disciplinary and publishing customs constrain our imagination and impede conceptions of fundamentally new ways of practising business. We explore why we need to reimagine business and management; what we mean by reimagining business and management and what it means to be a force for good. We conclude that if the purpose of business needs to be reimagined, business schools will also need to change to be major catalysts in this process. [ABSTRACT FROM AUTHOR]

The growing literature at the intersection of executives' characteristics and stakeholders' evaluations argues that executives' characteristics not only have "first-order effects" on their organizations' actions and outcomes, as in upper echelons theorizing, but also give rise to "second-order effects" or "opportunity structures," whereby stakeholders evaluate and react to focal executives' organizations based on those characteristics. Despite many insights from the burgeoning literature on the second-order effects of executives' characteristics on stakeholders' evaluations and reactions, the literature lacks a comprehensive framework with core tenets by which stakeholders form evaluations of executives' characteristics that drive their actions (or, reactions, as it were) based on such characteristics and the ensuing outcomes. In turn, knowledge from the proliferating literature on how stakeholders react on the basis of their evaluations of referent organizations' executives' characteristics is fragmented, consisting of a series of disconnected findings and attendant insights scattered across various theoretical and topical domains. We conducted a framework synthesis of the literature to iteratively derive a conceptual framework from extant research—which we call the stakeholder view of upper echelons —that synthesizes knowledge at the intersection of executives' characteristics and stakeholders' reactions around this framework. In doing so, we provide the foundation for future research to help extend knowledge in this important domain. We identify several avenues that are important for future work to address and provide practical implications from our framework. [ABSTRACT FROM AUTHOR]

The paper aims to explore small and medium enterprise (SME) owners' and managers' personal values, orientations, and motives towards corporate social responsibility (CSR) using the stakeholder theory. This study used a qualitative approach aligned with the constructionism philosophy. Ten respondents were purposively approached and interviewed. Thematic analysis was used to analyze and interpret data. Findings showed that SME owners and managers' values, orientation, and motives influence CSR engagement and explain their nexus. This study gives a unique perception of awareness among SME owners and managers in Sri Lanka about CSR implementation while contributing to the existing area. It is proposed to conduct an in-depth exploration of the complexity in which CSR initiatives are embedded in the SME sectors of developing countries. This study will become a benchmark for other CSR studies. [ABSTRACT FROM AUTHOR]

Complacency is almost archaic in the knowledge economy, because firms are overwhelmingly confronted with diverse expectations from better informed stakeholders, who pressure on societal issues amid shareholders' calls for greater financial security. Similarly, there is a growing call for corporations to redefine their responsibilities to stakeholders, and to integrate socio-economic and environmental concerns into business processes and strategies in order to transparently impact on societies. In a bid to support mutually beneficial relationships, this paper shows how stakeholder theory proactively moderates the strength of CSR in social interactions, environmental protection, and sustainable development. It proposes a four-stage stakeholder dialogue ladder which attempts to synergize CSR, stakeholder and stakeholder theory based on the stages as defined by the firm's extent of development, and her regularity and intensity of interaction with stakeholders. The paper argues that subject to the problem to solve, the languages of CSR and stakeholder theory are useful and that, the dichotomies of covering wrongdoing and creating falsehoods could be addressed when firms adopt stakeholder dialogue and collaboration that aid friendly CSR programmes. Thus, the relationship turns that of dyadic partnership, because corporations follow issue or purpose-based CSR programmes that create values that trickle to interdependent stakeholders. In sum, corporations need to continually get committed to environmentally-sensitive CSR since there is a strong relationship between CSR activities, stakeholders and actual performance. [ABSTRACT FROM AUTHOR]

This research aims to identify the factors for implementing Green Human Resource Management practices that will enhance the corporate social performance in the banking sector of Pakistan. The data are collected from experts from different banks on different designations. The applied methods are two integrated MCDM techniques of ISM and DEMATEL. This research contributes to the identified factors as a framework is developed using the integration of the triple theory approach, which will be helpful for the effective implementation of Green HRM to improve Corporate Social Performance. This research offers insight into how firms can enhance their social reputation by conducting different GHRM initiatives; they can promote their employees by teaching them about Green HRM practices and supporting green culture in the organization and society. The study is valuable for organizations, governments, and industries to improve their social performance by implementing GHRM practices. [ABSTRACT FROM AUTHOR]

This study analyses how startups implement circular business models supported by innovation and Industry 4.0, in which strategic stakeholders for value creation are to be found in this specific business ecosystem. The theoretical framework of circular business models supported by innovation was used for analysing the startups based on some assumptions of stakeholder theory. Fifty-one startups were selected, which correspond to the unit of analysis for this study on the improvement of supply chains through circular business models supported by innovation aimed at sustainability in organizations. We conducted a multiple case study whose results suggest that: (i) circularity is strategic for the business to assume its commitment to a sustainable development agenda, especially regarding pollution prevention and proactive action; (ii) visionary entrepreneurs are actively engaged with circular economy practices and technological innovation to promote a circular flow for their business ecosystem; (iii) Industry 4.0 is still incipient, but it is synergistic and beneficial for a successful circular economy in startups; and (iv) primary stakeholders are the activators of circular cycles in the startups surveyed. The present study contributes to the literature in four ways by: (i) presenting a framework which brings together exploratory theoretical propositions on strategic stakeholders for startups, innovative capabilities and assumptions of circular business models; (ii) validating exploratory theoretical propositions with 51 startups; (iii) providing lessons learned so far by the startups which are in line with the assumptions of circular business models for triggering their innovation capabilities and promoting Industry 4.0; (iv) providing an original typology of circular economy assumptions and technological innovations adopted by startups. The originality of this study lies in presenting useful insights for motivating managers to: (i) invest in circular business to become one of the first entrants and earn extra profits; (ii) make investments in circular business and technological innovations to obtain efficiency, practicality and process optimization; (iii) internalize Industry 4.0 technologies concomitantly with technological innovations and circular economy to generate systemic effects; (iv) integrate relevant stakeholders of the business ecosystem to generate a synergistic and effective effect for sustainable development. [ABSTRACT FROM AUTHOR]

Porter and Kramer's "creating shared value" (CSV) proposal has achieved significant penetration into both the academic and corporate communities. Building on other critiques of CSV, this paper assesses whether the CSV framework, notwithstanding its popularity, currently possesses an appropriate and adequate theoretical foundation to represent an overarching normative framework for the entire business and society field. The analysis does so by comparing CSV with a series of other dominant business and society approaches including corporate social responsibility, business ethics, stakeholder management, sustainability, and corporate citizenship. The analysis finds that while CSV does address the fundamental business and society normative requirement that business activities should contribute to sustainable net societal value, it currently fails to adequately incorporate the equally important notions of (i) appropriately balancing stakeholder interests with those of the corporation's shareholders, as well as (ii) demonstrating sufficient accountability (i.e., taking responsibility) by properly reporting on and addressing any negative impacts resulting from the firm's activities. The paper concludes with a revised and expanded restatement of the CSV concept, which attempts to take into account and address its current theoretical limitations in order to enhance its appeal as an overarching business and society normative paradigm. [ABSTRACT FROM AUTHOR]

This study examines the relationship between corporate social responsibility (CSR), earnings management (EM), and the characteristics of chief executive officers (CEOs) within the context of China's economic transformation. Drawing on stakeholder theory and upper echelon theory, this study investigates the influence of CSR on EM and the role of CEO characteristics. The empirical analysis is based on a sample of 1,980 Chinese firm‐year observations from the Shenzhen and Shanghai stock markets, between 2013 and 2017. The findings reveal a negative relationship between CSR performance and discretionary accruals (DA), suggesting that higher CSR is associated with lower EM. Moreover, this relationship is more pronounced among firms with highly educated CEOs (postgraduates) and mature CEOs (approaching retirement age). Notably, the negative CSR–EM relationship is strengthened in firms with mandatory CSR reports. This study expands prior research by exploring the impact of CEO characteristics on the CSR–EM relationship, incorporating CEO attributes alongside ownership structures and governance mechanisms. The findings offer insights for organizations in terms of selecting ethically committed CEOs, as well as guidance for shareholders in understanding CEO selection criteria. Furthermore, this study highlights the importance of mandatory CSR disclosure (CSRD) for policymakers evaluating CSR performance according to the disclosure type. [ABSTRACT FROM AUTHOR]