Stakeholder engagement has grown into a widely used yet often unclear construct in business and society research. The literature lacks a unified understanding of the essentials of stakeholder engagement, and the fragmented use of the stakeholder engagement construct challenges its development and legitimacy. The purpose of this article is to clarify the construct of stakeholder engagement to unfold the full potential of stakeholder engagement research. We conduct a literature review on 90 articles in leading academic journals focusing on stakeholder engagement (...) in the business and society, management and strategy, and environmental management and environmental policy literatures. We present a descriptive analysis of stakeholder engagement research for a 15-year period, and we identify the moral, strategic, and pragmatic components of stakeholder engagement as well as its aims, activities, and impacts. Moreover, we offer an inclusive stakeholder engagement definition and provide a guide to organizing the research. Finally, we complement the current understanding with a largely overlooked dark side of stakeholder engagement. We conclude with future research avenues for stakeholder engagement research. (shrink)

This article explores methodological problems of qualitative research templates, that is, the Eisenhardt and the Gioia case study approaches, which are relevant for the business and society scholarship and outlines a reflexive historical research methodology that has the potential to face these challenges. Building on Hans-Georg Gadamer’s philosophical hermeneutics, we draw critical attention to qualitative B&S research and frame the methodological problems identified as the normative challenges of qualitative research, that is, to productively deal with both the researchers’ norms and (...) the research subjects’ norms. We then introduce the reflexive historical case study, a distinct research strategy to face normative challenges based on philosophical hermeneutics and the interpretive tradition of studying organizations. This research approach aims at theory elaboration while its mode of enquiry is reflexive. By explicating three of its key characteristics and using a case example to illustrate our approach, we demonstrate how B&S scholars can benefit from the “temporal filter” of the historical lens and from reflexive concerns about the nature of theory and empirical material. To tap the potential of historical research, we finally envision a research program for studying issues and debates associated with B&S scholarship. (shrink)

In this article, we offer an approach of how participative stakeholder innovation can be evaluated in complex multistakeholder settings that address wicked issues. Based on the principle of mutual value creation, we present an evaluation framework that accounts for the social interaction process during which stakeholders integrate their resources and capabilities to develop innovative products and services. To assess this evaluation framework, we collected multiple data from the case study of the Swiss Cardiovascular Network, which represents a multistakeholder setting related (...) to the prevention of cardiovascular disease. Our findings indicate that the evaluation dimensions of the stakeholders’ mindsets, the process and context of the stakeholder interactions, as well as the outcomes are useful concepts to account for a cooperative process of innovation in a multistakeholder setting. We discuss both the theoretical and practical insights of our analysis for participative stakeholder innovation. (shrink)

In this conceptual paper, we draw on social identity theory as a means to bridge individuals’ memberships in social groups with value creation in stakeholder networks defined by a socio-economic issue. To address recent calls for microfoundations of stakeholder theory, we introduce a reconceptualization of stakeholders as social groups to examine how value is defined and interpreted in intergroup processes embedded in an issue-based stakeholder network. We establish a theoretical model of value creation that links individuals’ identification with stakeholder groups (...) to intergroup trust, co-operation, and value creation. Specifically, we argue that the salience of preexisting social identities causes harmful tensions in stakeholder relationships that negatively impact value creation. We then propose that the development of a more inclusive stakeholder identity overcomes these negative intergroup consequences in multistakeholder settings. We discuss the impact on value creation of four stakeholder identity representations based on the salience of specific and superordinate stakeholder groups. The paper concludes with implications of our theoretical model for both research and practice related to value creation in issue-based stakeholder networks. (shrink)

This book offers a case-study approach to stakeholder theory that moves beyond theoretical analysis to the applied. As stakeholder theory has moved into the mainstream of management thinking in business ethics and a number of the management disciplines, there is an increasing need to explore the subtleties of stakeholder engagement via examples from practice. The case studies in this volume explore a number of aspects of the idea of stakeholder engagement, via the method of clinical case studies. Edited by leading (...) scholars in the field of business ethics and stakeholder theory, this text affords a solid grounding in theory, brought to new levels of applied understanding of stakeholder engagement. (shrink)

Today, sustainable relations with a broad range of key stakeholders are not only important from a normative business ethics perspective, but also from an entrepreneurial viewpoint to allow and support the long-term survival of a firm. We will argue that the traditional conception of a firm’s corporate social responsibility does not reflect this view and that a comprehensive and dynamic conception of a firm’s responsibilities is necessary to map the reality of business practice and to manage the challenges implied by (...) sustainability. We think that distributive justice, that is the way in which firms involve their stakeholders in their wealth creation and dissemination processes, provides a comprehensive understanding of corporate responsibilities. Concerning procedural justice, we will discuss how firms involve stakeholders in their strategic processes according to their contribution to wealth creation. In the course of the article, we will propose a framework along with three design principles that can be used for shaping dynamic and comprehensive corporate responsibilities, and which thereby allow a sustainable procedure for changing business and non-business environments. (shrink)

Practitioners and leading scholars emphasize the need of integrating the notion of stakeholder more systematically into strategy theory. In corporate reality, this process has been on its way for quite some time because companies realized that a one-sided orientation to short-term shareholder value is a too narrow conception for strategic management, especially since firms’ strategically relevant resources today are not purely of financial nature but most importantly knowledge oriented. This paper will evaluate some insights into good practices of strategic stakeholder (...) management in the financial services industry and the telecommunications industry of Switzerland in order to stimulate the ongoing learning process in strategic stakeholder management. The results do support appropriateness of stakeholder management in situations of turbulence and as useful extension of conventional approaches in strategic management. (shrink)

This paper describes a structured approach to the selection of an analytic strategy for cross-case analysis and a method for data display. To this end, criteria will be developed addressing both, aspects of scientific rigor as well as the practicability of application and the application of the decision process will be demonstrated.

The paper of Klaus Leisinger is a comprehensive description and reflection on the role and responsibilities of key stakeholders to complex and urgent issues, and suggests novel approaches such as stakeholder collaborations for Global Health. Most corporations have, until recently, focused on a small set of stakeholders in regard to creating corporate value. Increasingly, however, corporations are facing broad ranging and complex issues. To deal with them, they realize that their present business model might be too narrow. To improve the (...) quality of life of poor patients in low-income countries, a broader set of stakeholders needs to be included in new and innovative ways. (shrink)

In this paper we aim to show that based on an effective stakeholder management corporations are able to build and maintain three important licences tosuccessfully fulfil their fundamental value creation task, namely the licence to operate, the licence to compete and the licence to innovate. The corporation is regarded as an institution engaged in mobilizing resources for productive uses in order to create wealth with and for its stakeholders. Our concept of the three licences is based on the widely discussed (...) (e.g. Bracken, 2003; Buono, 2003; Caldwell, 2004; Jones, Wicks, & Freeman, 2002; Lamont, 2004; Walsh, 2005) “Stakeholder View” framework by Post, et al. (2002) which concerns the firm’s interactions with its stakeholders. Our concept of the three licences is supported by the results of our qualitative case research in the financial services and the telecommunications industry. (shrink)

Corporate success is understood as stakeholder value, which is based on three licenses: the licenses to innovate, to compete, and to operate. Stakeholders contribute to these three licenses through their benefit and risk potentials. Based on four cases, a stakeholder value management system is developed which provides managers with a tool to systematically use the benefit potentials that lie in stakeholder relations. The links between corporate value creation and stakeholders are identified.

As knowledge creation quickly gains importance for globally active corporations, we attempt to combine the advantages of the Stakeholder View with those of the SECI model by Nonaka and Takeuchi. In order to support the mental processes of the stakeholders, we use so-called topic maps to transform implicit into explicit knowledge and to visualize it. The preliminary propositions are illustrated by the case study of Swiss Re.

The paper develops a framework to evaluate a network's stakeholders' perceptions concerning an issue which is highly relevant for all stakeholders. The framework helps us to understand how stakeholder networks impact perceptions and vice versa, which will result in a better understanding of the interrelatedness of a network. On the other hand, it helps corporations to become more effective increating wealth with and for their stakeholders.