Session 182

Challenges for Stakeholder Management

Track M

Date: Tuesday, October 9, 2012


Time: 14:15 – 15:30

Common Ground

Room: Meeting Room 2.1


  • Abdul Rasheed, University of Texas-Arlington

Title: Incentives for Giving: The Effect of Social Comparison Processes on Individual Donation Behavior


  • Marta Maras, Bocconi University

Abstract: The relationship between income and charitable giving as a proportion of that income is negative and significant for the majority of population. The relatively poorest households are donating the highest percentages of their income. Empirical studies so far have not identified the reasons behind such a pattern. By manipulating the factor of social comparisons, I successfully replicate this finding in an experimental setting and expose income rank information as one of the factors causing this relationship. Only when participants earn their payoff in the difficult task and are aware of their ranking, those with lower rankings donate afterwards a higher payoff percentage to charity. Such circumstances approximate most closely real money-earning conditions. Without rank information or after an easy task this relationship does not emerge.

Title: Link between financial performance and ESG scores: Evidence from India


  • Babitha Vishwanath, Sarojini Naidu Vanita Maha Vidyalaya

Abstract: Corporate Social Responsibility (CSR) is one of the remarkable business advances of the 20th century. In India, CSR is a young subject and is evolving. This study is an attempt to explore the linkage between financial performance and CSR performance (measured by Environment, Social and Governance score). Cluster analysis is used to group the sample companies into three categories viz. poor, fair and good based on ESG scores. Based on financial performance they are grouped into low, moderate and high performing companies. Correspondence analysis is used to estimate the association among these six groups. It is noted that the association is not significant in the corresponding years as well as when lag effect is considered.

Title: Marginalized Stakeholders in A Firm-Specific Setting: Gaining Saliency and Use of Representative Power


  • Rashedur Chowdhury, University College Dublin
  • Stelios Zyglidopoulos, University of Cambridge

Abstract: This article links stakeholder theory and the social movement approach in a process model in order to explain how marginalized stakeholders can influence multinational firms’ strategies. This article argues that powerful firms usually fail to analyze marginalized stakeholders in alignment with salient stakeholders, and fail to respond to them according to societal expectations. Firms only start to respond to marginalized stakeholders when they gain salience and have started to disrupt the firms’ strategies. A marginalized stakeholder group can gain salience and use representative power by manufacturing a new voice and through goal-driven unique and temporary alliances that adapt heterogeneous ideological standpoints, through protest strategies which are designed to participate in dialogues with powerful actors, and by mobilizing symbolic resources.

Title: Shared Stakeholder Interest, Leading Performance Indicators, and Firm Value Creation


  • David Souder, University of Connecticut
  • Jared Harris, University of Virginia

Abstract: Much of the existing literature analyzes the extent to which stakeholder-orientation, as an input, leads to higher output, often measured in terms of a firm’s financial performance. We propose an alternate approach, based on the principle of opportunity cost, which allows outputs as well as inputs to include the full range of key stakeholders. This approach avoids treating stakeholder value as a fixed-sum resource for which different stakeholders negotiate, and instead builds on the idea that organizations can create value for multiple stakeholders simultaneously based on their shared interests. Specifically, we propose that a series of firm-specific leading indicators of competitive advantages and potential vulnerabilities can be derived by comparing inputs and outputs within each category of stakeholder rather than across categories.

Title: The Effect of Media Portrayal of Organizations on Stakeholder Reactions to Disruptive Events


  • Anastasiya Zavyalova, Rice University

Abstract: I examine the effect of media portrayal of organizations prior to a disruptive event on stakeholders’ decision to transact with an organization after the event. The paper focuses on the interplay of two aspects of media portrayal of organizations: the amount and tenor of media coverage and their relation to stakeholder familiarity with and evaluation of a focal organization prior to disruptions. A description of typology of organizational archetypes generated by the media—celebrity, infamous, complex, peripheral, and unfamiliar organizations—is followed by propositions that examine how each of the five archetypes is affected by disruptions. Relying on research in mass communications and organization studies I suggest that disruptive events are not always detrimental for stakeholders’ supportive transactions, and in some cases may benefit organizations.

Title: The Role of Media, Reputation, and Organizational Identification Following Disruptions


  • Anastasiya Zavyalova, Rice University

Abstract: Some organizational studies suggest that high reputation is a buffer that attenuates the negative effect of disruptions on stakeholder decisions to transact with the organization; others find that reputation is a liability that amplifies this effect. I address these inconsistencies by exploring 1) the variation in media coverage of disruptions in low and high reputation organizations and 2) stakeholders’ organizational identification. The results of empirical analyses in the context of on-campus murders in U.S. universities in 2001-2009 indicate that disruptions in high-reputation organizations are more likely to be covered in the media. Disruptions are associated with fewer transactions by stakeholders with high and low levels of organizational identification. Whereas organizational reputation amplifies the negative effect for transactions by low-identification stakeholders, this asset serves as a buffer for transactions by high-identification stakeholders.

All Sessions in Track M...

Sun: 08:00 – 09:15
Session 126: Entrepreneurship & Stakeholders - The Future Research Agenda
Sun: 11:15 – 12:30
Session 276: Performance Measurement Tools: A Review of Progress
Mon: 08:00 – 09:15
Session 106: Why do Firms do Bad Things and What Do We Know about It?
Mon: 09:30 – 10:45
Session 15: Human Factors in Stakeholder Strategy
Mon: 13:30 – 14:45
Session 12: Effective Stakeholder Management
Session 138: Value Creation & Appropriation: Take the money and run
Mon: 16:30 – 17:45
Session 113: Large Shareholders are Doing it for Themselves
Tue: 08:00 – 09:15
Session 11: Stakeholders and Corporate Social Performance
Tue: 11:00 – 12:15
Session 117: Heterogeneous Owner Types and their Influence
Tue: 14:15 – 15:30
Session 182: Challenges for Stakeholder Management
Tue: 15:45 – 17:00
Session 10: Stakeholders and Crisis Performance
Tue: 17:30 – 18:45
Session 13: The Problem of Performance in the Theory of the Firm:

Strategic Management Society