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Entrepreneurship involves cooperative efforts in which multiple stakeholders and resources are brought together to develop a valuable product or service. Accordingly, one key process through which entrepreneurs make progress exploiting their opportunities is by identifying, selecting, enrolling, and coordinating a network of stakeholders. However, although there is a widespread realization that bringing new ventures to life requires multiple stakeholders, precious little academic research has taken a holistic approach to stakeholder engagement. In this special issue we: (a) suggest that stakeholder theory provides a novel lens for viewing the critical entrepreneurial behavior of engaging stakeholders—and taking shared responsibility for an unmet opportunity, (b) describe the intriguing articles that encompass this special issue, and (c) offer our thoughts on directions for future research at the intersection of stakeholder theory and entrepreneurship.

To commemorate 40 years since the founding of the Journal of Business Ethics, the editors in chief of the journal have invited the editors to provide commentaries on the future of business ethics. This essay comprises a selection of commentaries aimed at creating dialogue around the theme Business versus Ethics? (inspired by the title of the commentary by Jefrey Harrison). The authors of these commentaries seek to transcend the age-old separation fallacy (Freeman in Bus Ethics Q 4(4):409–421, 1994) that juxtaposes business and ethics/society, posing a forced choice or trade of. Providing a contemporary take on the classical question “if it’s legal is it ethical?”, David Hess explores the role of the law in promoting or hindering stakeholder-oriented purpose and governance structure. Jefrey Harrison encourages scholars to move beyond the presupposition that businesses are either strategic or ethical and explore important questions at the intersection of strategy and ethics. The proposition that business models might be inherently ethical or inherently unethical in their design is developed by Sheila Killian, who examines business systems, their morality, and who they serve. However, the conundrum that entrepreneurs are either lauded for their self-belief and risk-taking, or loathed for their self-belief and risk-taking, is discussed by M. Tina Dacin and Julia Rolof using the metaphor of taboos and totems. These commentaries seek to explore positions that advocate multiplicity and tensions in which business ethics is not either/or but both.

Empirical research is largely supportive of the assertion of instrumental stakeholder theory that a positive relationship exists between “managing for stakeholders” and firm performance. However, despite considerable debate on the subject, the amount of variation across firm investments in stakeholders (stakeholder management performance) has not been adequately investigated. We address this gap using a sample of more than eighteen thousand firm-level observations over ten years. We find evidence to support an inverted U–shaped relationship between variation in stakeholder management performance and Tobin’sq, suggesting that firms that have some imbalance in their stakeholder management, but not too much, perform best. We discuss the implications of our study for instrumental stakeholder theory and managerial practice.

The Business Roundtable, a large group of top CEOs, recently issued a statement defining the purpose of the corporation in stakeholder terms, a direct and intended reversal from an earlier statement that defined the duty of directors as serving the interests of stockholders. In this editorial, we briefly describe the major twists and turns in the stockholders-versus-stakeholders debate that make this statement so significant to management theory and practice. We then describe the implications of the statement for scholars and practicing managers. We end with a description of three specific research topics that require more research in light of this statement: firm boundaries, the nature of value creation systems, and theory regarding the destruction of stakeholder value.

As a relatively young discipline, the field of strategic management has not been as stifled as some other fields by what might be called a “normal science straitjacket” of established theories and methods. Instead, interesting conversations have emerged, based on homegrown ideas and drawing from numerous other disciplines. In the first few decades, these conversations shifted like a pendulum from an internal organizational emphasis to a focus on the competitive environment, and back with an emphasis on the resource-based view. This chapter demonstrates how many of the recent interesting findings are based on moving the pendulum toward the center, applying external perspectives to internal questions, and vice versa. The chapter provides examples of this phenomenon for a number of external and internal topics that are important to solving important strategic challenges. It also highlights promising research questions in these areas that have yet to be adequately addressed.

Stakeholder theory focuses on how more value is created if stakeholder relationships are governed by ethical principles such as integrity, respect, fairness, generosity and inclusiveness. However, it has not adequately addressed strategies that stakeholders perceive as harmful to their interests and how this perception can even lead some stakeholders to view the firm’s strategies as unethical. To fill the void, this paper directly addresses strategies that stakeholders perceive as harmful to their interests, or what we refer to as harmful stakeholder strategies. Specifically, it identifies factors associated with stakeholder perceptions of harm that are likely to cause them to consider a strategy unethical, examines the negative implications for firms that pursue such strategies in terms of likely stakeholder responses and damage to stakeholder relationships, and provides theory to help explain how firms are likely to respond to stakeholder claims that a strategy is unethical, based on factors such as the strategic importance of the claim to the firm, how long the strategy has been in use, the costs of remediation, the risk of stakeholder mobilization or new regulation, and whether firms can reasonably rationalize their actions. Assessing harm allows a firm to make a more accurate estimate of the costs of a strategy and can assist managers in allocating resources intended to reduce or remediate harm.

The stakeholder perspective has provided a rich forum for a variety of debates at the intersection of business and society. Scholars gathered for two consecutive years, first in North America, and then in Europe, to discuss the major issues surrounding what has come to be known as stakeholder theory, to attempt to find common ground, and to uncover areas in need of further inquiry. Those meetings led to a list of “tensions” and a call for papers for this special issue to help address them. In this article, we introduce the resulting articles and provide some brief commentary on their importance. We end with a few of our own observations about the stakeholder perspective and stakeholder research.

We study how tailoring noncovalent interactions through the regiochemistry of common donor–acceptor polymers can alter their excited-state electronic properties. Specifically, we compare two regioregular analogues (referred to as P1 and P2) of the widely used donor–acceptor copolymer poly[4,8-bis(5-(2-ethylhexyl)thiophen-2-yl)benzo[1,2-b:4,5-b′]dithiophene-co-3-fluorothieno[3,4-b]thiophene-2-carboxylate], which differ only in the orientation of a fluorine atom on the thieno[3,4-b]thiophene acceptor units with respect to the benzodithiophene unit. We show that in thin films, this subtle change along the polymer backbone results in a transformation from typical H-like to an unusual HJ-like aggregate behavior, indicating significant differences in intrachain exciton coupling along the polymer backbone and interchain coupling between polymer chains. We also use electroabsorption spectroscopy to relate the dominant coupling mechanisms to differences in the excess polarization volume of the excitons in P1 and P...

Instrumental stakeholder theory considers the performance consequences for firms of highly ethical relationships with stakeholders, characterized by high levels of trust, cooperation, and informati...

Correlating nanoscale chemical specificity with operational physics is a long-standing goal of functional scanning probe microscopy (SPM). We employ a data analytic approach combining multiple microscopy modes using compositional information in infrared vibrational excitation maps acquired via photoinduced force microscopy (PiFM) with electrical information from conductive atomic force microscopy. We study a model polymer blend comprising insulating poly(methyl methacrylate) (PMMA) and semiconducting poly(3-hexylthiophene) (P3HT). We show that PiFM spectra are different from FTIR spectra but can still be used to identify local composition. We use principal component analysis to extract statistically significant principal components and principal component regression to predict local current and identify local polymer composition. In doing so, we observe evidence of semiconducting P3HT within PMMA aggregates. These methods are generalizable to correlated SPM data and provide a meaningful technique for extracting complex compositional information that is impossible to measure from any one technique.

Ionic transport phenomena in organic semiconductor materials underpin emerging technologies ranging from bioelectronics to energy storage. The performance of these systems is affected by an interplay of film morphology, ionic transport and electronic transport that is unique to organic semiconductors yet poorly understood. Using in situ electrochemical strain microscopy (ESM), we demonstrate that we can directly probe local variations in ion transport in polymer devices by measuring subnanometre volumetric expansion due to ion uptake following electrochemical oxidation of the semiconductor. The ESM data show that poly(3-hexylthiophene) electrochemical devices exhibit voltage-dependent heterogeneous swelling consistent with device operation and electrochromism. Our data show that polymer semiconductors can simultaneously exhibit field-effect and electrochemical operation regimes, with the operation modality and its distribution varying locally as a function of nanoscale film morphology, ion concentration and potential. Importantly, we provide a direct test of structure-function relationships by correlating strain heterogeneity with local stiffness maps. These data indicate that nanoscale variations in ion uptake are associated with local changes in polymer packing that may impede ion transport to different extents within the same macroscopic film and can inform future materials optimization.

Scholars and practitioners have acknowledged the practical relevance of stakeholder theory as it has been applied to management. This chapter provides a brief foundation for understanding the basic principles of stakeholder management and some of its best known tools, including the development of an enterprise strategy, identification and prioritization of stakeholders, and measurement of the value firms create with and for stakeholders. Then insights are shared about implementation of stakeholder management based on interviews with high-level executives from a variety of well-known companies. It was found that stakeholder principles have been applied in a variety of ways and under various labels. The chapter ends with a list of eight important questions to advance research on stakeholder management.

Publication bias is the systematic suppression of research findings due to small magnitude, statistical insignificance, or contradiction of prior findings or theory. We review possible reasons why publication bias may exist in strategy research and examine empirical evidence regarding the influence of publication bias in the field. Overall, we conclude that publication bias affects many, but not all, topics in strategic management research. Correlation inflation due to publication bias ranged in magnitude from .00, indicating no bias, to .19, representing considerable bias. These results suggest that caution should be exercised when interpreting scientific conclusions regarding certain determinants of firm performance, while greater confidence may be expressed in others. We discuss how publication bias can be addressed both philosophically and empirically in the domain of strategy.

In this Introduction to the Special Topic Forum on Management Theory and Social Welfare, we first provide an overview of the motivation behind the special issue. We then highlight the contributions of the six articles that make up this forum and identify some common themes. We also suggest some reasons why social welfare issues are so difficult to address in the context of management theory. In addition, we evaluate means of assessing social welfare and urge scholars not to make (or imply) unwarranted “wealth creation” claims.

The stakeholder perspective is an alternative way of understanding how companies and people create value and trade with each other. Freeman, Harrison and Zyglidopoulos discuss the foundation concepts and implementation of stakeholder management as well as the advantages this approach provides to firms and their managers. They present a number of tools that managers can use to implement stakeholder thinking, better understand stakeholders and create value with and for them. The Element concludes by discussing how managers can create stakeholder oriented control systems and by examining some of the important stakeholder-related issues that are worthy of future scholarly and managerial attention.

Ionic-transport processes govern performance in many classic and emerging devices, ranging from battery storage to modern mixed-conduction organic electrochemical transistors (OECT). Here, we study local ion-transport dynamics in polymer films using time-resolved electrostatic force microscopy (trEFM). We establish a correspondence between local and macroscopic measurements using local trEFM and macroscopic electrical impedance spectroscopy (EIS). We use polymer films doped with lithium bis(trifluoromethane)sulfonimide (LiTFSI) as a model system where the polymer backbone has oxanorbornenedicarboximide repeat units with an oligomeric ethylene oxide side chain of length n. Our results show that the local polymer response measured in the time domain with trEFM follows stretched-exponential relaxation kinetics, consistent with the Havriliak-Negami relaxation we measure in the frequency-domain EIS data for macroscopic samples of the same polymers. Furthermore, we show that the trEFM results capture the same trends as the EIS results-changes in ion dynamics with increasing temperature, increasing salt concentration, and increasing volume fraction of ethylene oxide side chains in the polymer matrix evolve with the same trends in both measurement techniques. We conclude from this correlation that trEFM data reflect, at the nanoscale, the same ionic processes probed in conventional EIS at the device level. Finally, as an example application for emerging materials syntheses, we use trEFM and infrared photoinduced force microscopy (PiFM) to image a diblock copolymer electrolyte for next-generation solid-state energy storage applications.

Through a critique of existing financial theory underlying current accounting practices, and reapplication of this theory to a broad group of stakeholders, this paper lays a normative foundation for a revised perspective on the responsibility of the public accounting profession. Specifically, we argue that the profession should embrace the development of standards for reporting information important to a broader group of stakeholders than just investors and creditors. The FASB has recently moved in the opposite direction. Nonetheless, an institution around accounting for stakeholders continues to grow, backed by a groundswell of support from many sources. Based on institutional theory, we predict that this institution and the forces supporting it will cause changes in the public accounting profession, even if through coercion. We also provide examples of stakeholder accounting, building from the premise that a primary responsibility of accounting is to provide information to address the risk management needs of stakeholders.

Do firms respond to changes in economic growth by altering their corporate social responsibility programs? If they do respond, are their responses simply neglect of areas associated with corporate social performance (CSP) or do they also cut back on positive programs such as profit sharing, public/private housing programs, or charitable contributions? In this paper, we argue that because CSP-related actions and programs tend to be discretionary, they are likely to receive less attention during tough economic times, a result of cost-cutting efforts. However, the various CSP performance areas vary in terms of their resource requirements and their influence on financial performance (short- and long-term), which suggests that firms may respond differently depending on area. Consequently, in addition to examining CSP concerns separately from positive actions and programs (CSP strengths), we also examine the influence of economic growth across the five areas of diversity, employee relations, the environment, product quality/safety, and the community. Based on data from 837 firms over 15 years, our results suggest that firms neglect some areas associated with CSP during economic downturns, resulting in increased concerns about community and employee relations, product safety/quality, and the environment. However, this relationship does not apply to positive actions and programs. Instead, firms tend to increase their positive CSP programs in areas such as diversity, employee relations, and the environment during periods of slow economic growth and reduce them when the economy picks up. We offer potential explanations for our findings and discuss their importance to research on CSP.

This chapter highlights some of the tensions and most promising points of convergence between the strategic management and stakeholder theory literatures. We briefly examine the early development of both areas, identifying some of the background assumptions and choices that informed how the fields evolved, and how these factors led the two fields to engage in scholarly pursuits that seldom intersected for a period of years, followed by a renewal of interest among strategists in themes that are central to stakeholder theory. From this discussion, we develop a larger agenda with specific topics as examples of areas that offer promise for integrative research that can advance knowledge in both fields. Our vision of the future is one in which the larger aspirations of scholars in strategy and stakeholder theory are more fully realized with human purposes, broadly defined, as the focal point.

Does consistency between how a firm treats employees (what it does) and its espoused employee-oriented values (what it says) affect employee productivity? Furthermore, given that the stakeholder theory perspective holds that what happens to one stakeholder influences other stakeholders, does this sort of consistency vis-a-vis a firm's customers also influence employee productivity? We empirically investigate the influence of organizational authenticity—defined as consistency between a firm's espoused values and realized practices—in the context of a merger, and specifically during post-merger integration. Our findings show that a lack of organizational authenticity in terms of both under-promising and over-promising to both employees and customers is associated with lower productivity, which in turn is related to long-term merger performance, thus affecting outcomes for shareholders. These findings support the importance of authenticity and should therefore be of interest to executives responsible for ens...

Firms across industries and geographies are increasingly orienting themselves towards a wider group of stakeholders, with on average positive long-term performance implications (Flammer, 2015; Hill...

The role of deliberative democracy within and around corporations has received growing attention over the past years in management and organization studies. The related debates on workplace democra...

Even the best stakeholder-managed firms can suffer when they become targets of a secondary boycott, as recent headlines attest. By definition, a secondary boycott is a group's refusal to engage a target firm with which the group has no direct dispute, in an attempt to sway public opinion, draw attention to an issue, or influence the actions of a disputant. This article provides a new perspective and tools for both scholars and managers concerned with this phenomenon. Building on a stakeholder theory foundation, we examine possible actions managers can take to avoid being surprised by a secondary boycott, propose conditions that raise the probability of becoming the target of a secondary boycott, and develop four alternative approaches for managing stakeholder relationships in a world of secondary boycotts.

Firms must allocate some minimum amount of value to stakeholders in order to retain access to the resources they provide. Stakeholder theory suggests managers optimize firm-level performance by allocating more than this minimum amount. However, how much is too much? This article addresses the misleading notion that more is always better when it comes to the treatment of stakeholders and, in doing so, provides needed refinement of the boundary of stakeholder theory's predictions. The upside for managers is guidance in distinguishing between the types of value-allocating behaviors that will lead to greater value creation in their firms and actions that are likely to reduce value overall.

This paper argues that the notion of value has been overly simplified and narrowed to focus on economic returns. Stakeholder theory provides an appropriate lens for considering a more complex perspective of the value that stakeholders seek as well as new ways to measure it. We develop a four-factor perspective for defining value that includes, but extends beyond, the economic value stakeholders seek. To highlight its distinctiveness, we compare this perspective to three other popular performance perspectives. Recommendations are made regarding performance measurement for both academic researchers and practitioners. The stakeholder perspective on value offered in this paper draws attention to those factors that are most closely associated with building more value for stakeholders, and in so doing, allows academics to better measure it and enhances managerial ability to create it.

Stakeholders are groups and individuals that have an interest in the actions and outcomes of an organization and upon whom the organization relies to achieve its own objectives. Note in this definition that there is a two-way interdependent relationship. It is not enough for a particular group or individual to claim a “stake” in the firm, such as suppliers, financiers, customers, shareholders, and communities. Genuine stakeholders are those that either contribute to or have the ability to undermine the productive activities of an organization. Because of its breadth, stakeholder theory holds multiple interpretations, but at its heart the theory suggests that firms that take excellent care of a broad group of these stakeholders (as opposed to focusing on one group, such as shareholders or customers) will gain benefits that are not available to other organizations. For example, employees are expected to work harder, customers to buy more, suppliers to provide the best resources and terms, financiers to offer the best interest rates, and so forth. These sorts of benefits lead an organization to create more value, which is then distributed back to the stakeholders that helped to create it. In spite of what many scholars and practitioners might think, this theory is not the same as corporate social responsibility (CSR), which tends to focus on social issues such as the environment or sustainability. While it may be true that firms that take exceptionally good care of their stakeholders may also be good corporate citizens, the objective behind stakeholder theory is on effective and efficient management in an increasingly turbulent business environment rather than pursuing social welfare for its own sake.

The ability to measure microsecond- and nanosecond-scale local dynamics below the diffraction limit with widely available atomic force microscopy hardware would enable new scientific studies in fields ranging from biology to semiconductor physics. However, commercially available scanning-probe instruments typically offer the ability to measure dynamics only on time scales of milliseconds to seconds. Here, we describe in detail the implementation of fast time-resolved electrostatic force microscopy using an oscillating cantilever as a means to measure fast local dynamics following a perturbation to a sample. We show how the phase of the oscillating cantilever relative to the perturbation event is critical to achieving reliable sub-cycle time resolution. We explore how noise affects the achievable time resolution and present empirical guidelines for reducing noise and optimizing experimental parameters. Specifically, we show that reducing the noise on the cantilever by using photothermal excitation instead of piezoacoustic excitation further improves time resolution. We demonstrate the discrimination of signal rise times with time constants as fast as 10 ns, and simultaneous data acquisition and analysis for dramatically improved image acquisition times.

THE PURPOSE OF THIS COLUMN IS TO PROVIDE BASIC RECOMMENDATIONS FOR PERSONAL TRAINERS AND STRENGTH COACHES ON HOW TO INTEGRATE KETTLEBELL TRAINING INTO THEIR CLIENTS’ EXERCISE PROGRAMS. THIS COLUMN REVIEWS THE CURRENT LITERATURE ON KETTLEBELL TRAINING AND EXAMINES POTENTIAL BENEFITS FOR STRENGTH, POWER, MUSCULAR ENDURANCE, AND FAT LOSS. RECOMMENDATIONS ARE PROVIDED AS TO HOW KETTLEBELLS CAN BE EFFECTIVELY INTEGRATED INTO EXERCISE PROGRAM DESIGN. TECHNIQUE FOR PROPER AND SAFE PERFORMANCE OF SOME OF THE BASIC KETTLEBELL EXERCISES IS ADDRESSED.

Recent perspectives on community investments suggest that they are opportunities for firms to create value for shareholders and other stakeholders. However, many corporate managers are still influenced by a widely held belief that such investments erode profits and are therefore unjustifiable from an agency perspective. In this paper, we refine and test theory regarding countervailing forces that influence community-based firm performance. We hypothesize that high levels of available slack will be associated with higher community-based performance, but that this relationship will be moderated by three important governance variables: board independence, investment fund ownership, and CEO ownership. We find support for our hypotheses in longitudinal study of a large sample of U.S. corporations.

Stakeholder theory focuses on how more value is created if stakeholder relationships are governed by ethical principles such as integrity, respect, fairness, generosity and inclusiveness. However, ...

SUMMARYFOR CENTURIES, MAN HAS SOUGHT OUT THE MOST EFFECTIVE METHODS TO BUILD STRENGTH, VIGOR, AND VITALITY. OVER THE YEARS, METHODS HAVE EVOLVED, SOME HAVE VANISHED, AND SOME NEVER WENT AWAY, ALTHOUGH SOMETIMES NEGLECTED AND FORGOTTEN. THIS COLUMN HIGHLIGHTS THE ADVANTAGES, DISADVANTAGES, AND TRAINI

Entrepreneurs bring together the various stakeholders necessary to create new products and services; however, stakeholders face a high level of uncertainty when determining whether to invest their resources in the venture. This paper draws from signaling theory and stakeholder theory to explain how firms that have reputations for outstanding treatment of stakeholders send a signal to potential resource investors that reduces the uncertainty they perceive to be associated with the venture. Perceived uncertainty is reduced because of an enhanced ability to acquire necessary resources, a smaller probability that unexpected events will occur, an increased ability to plan for changes that do occur in the external environment, and the possibility that the strong stakeholder network itself may be a source of sustainable competitive advantage for the firm. While these ideas are applicable to entrepreneurial ventures at many stages, the context examined herein is firms that are preparing for an initial public offering because they have had sufficient time to establish reputations.