Unfolding Stakeholder Thinking Theory


	Unfolding Stakeholder Thinking Theory, Responsibility and Engagement Jörg Andriof, KPMG, Germany and Warwick Business School, UK, Sandra Waddock, Boston College, USA, Bryan Husted, ITESM/Instituto de Empresa, Mexico, and Sandra Sutherland Rahman, Framingham State College, USA October 2002 \| 320pp \| Hardback \| ISBN 1 874719 52 7 \| GBP40.00 US$75.00



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THIS BOOK—the first of a two-volume series—argues that, today, stakeholder thinking has evolved into the study of interactive, mutually engaged and responsive relationships that establish the very context of doing modern business, and create the groundwork for transparency and accountability. This book makes it clear that in today’s societies successful companies are those that recognise that they have responsibilities to a range of stakeholders that go beyond mere compliance with the law or meeting the fiduciary responsibility inherent in maximising returns to shareholders. If in the past the focus was on enhancing shareholder value, now it is on engaging stakeholders for long-term value creation. The process of engagement creates a dynamic context of interaction, mutual respect, dialogue and change—not a one-sided ‘management’ of stakeholders. Indeed, the authors believe the very term ‘stakeholder management’ to be outdated and corporate-centric. Companies can manage their relationships with stakeholders, but frequently cannot actually manage the stakeholders themselves, because, as the activist and collaborative initiatives described in this volume suggest, company–stakeholder relationships are not one-way streets and different institutions bring different agendas, goals and priorities to the engagement. There are clear implications to the way in which stakeholder thinking is unfolding today. If in the past corporate ‘social’ responsibility was simply seen as profitability plus compliance plus philanthropy, now responsible corporate citizenship—or corporate responsibility—means companies being more aware of and understanding the societies in which they operate. Corporate responsibility means recognising that day-to-day operating practices affect stakeholders and that it is in those impacts where responsibility lies, not merely in efforts to ‘do good’. Companies are now faced with a wide array of challenges that mean that senior executives and managers need to be able to deal with issues including greater accountability, human rights abuses, sustainability strategies, corporate governance codes, workplace ethics, stakeholder consultation and management. Stakeholder thinking needs to capture these new realities. The global reach of multinational corporations has served to highlight the need for the (re)integration of business into society, relationships into stakeholder relations, and ethics into managerial practice. The rise in power of global activism involving NGOs, and global business involving multinational corporations, makes it even more critical today for companies to consider the power and interests of corporate stakeholders when developing strategic plans. The interactivity and mutuality of relationships described in this book make it clear that firms and stakeholders share the power and responsibility to influence both the profit potential of the firm and how the benefits of the firm’s success impact on society. This important volume brings together leading academic thought on stakeholder thinking for the first time. *Unfolding Stakeholder Thinking* will be indispensable to corporate managers, NGOs and academics seeking greater understanding of the dynamics of stakeholder thinking in a world of rapidly changing responsibilities. A companion volume, *Unfolding Stakeholder Thinking II, focusing on practical issues such as relationship management, communication, reporting, and performance, will be published in Spring 2003. Back to the Top The work that needs to be done in order to rescue business from the moral scrapheap is being done by the authors and editors of this volume ...* Unfolding Stakeholder Thinking is the right book at the right time. R. Edward Freeman What is stakeholder engagement all about? It is about all those involved in and affected by, for instance, a company's investment decision, taking responsibility for working together to achieve the greatest possible value for everyone concerned. This book is recommended reading for such stakeholders, be they company managers, trade unionists, government officials or NGO activists, who want a better contextual understanding of this new, more inclusive approach to value creation. Chris Marsden, OBE, Chair, Amnesty UK Business Group The authors take the reader through the complex journey that is stakeholder thinking, providing clarity, with context and perspective, while signposting the challenges and dilemmas for business in our societies. James Forte, Director, Corporate Citizenship, Europe, KPMG This is an insightful overview of the evolution of the corporate relationship to society. The clear identification of stages can also be interpreted as typologies of corporate social responsibility. Companies may find it revealing to position themselves on the axis the authors have created. Dr Herbert Heitmann, Senior Vice President Global Communications, SAP AG Reviews Centrally, this book offers new theories with which to understand business as an organic part of the global social system, and if you take time out for this, it might change your outlook. . . . you will see that stakeholder thinking does not demand that firms lose resources by forcing together commercial and philanthropic objectives that are essentially cross purposed. Instead it demands that they reconceive their commercial objectives, having recognised and re-evaluated the role that stakeholders already play in their operations. . . . within this book you will find . . . a vision with which to refine your sense of purpose. *Ethical Corporation* Greenleaf have produced an excellent ‘manual’ of stakeholder theory, practice, engagement thinking and perception which should grace the office shelf of any practitioner who works with all or some of the stakeholder sector. *Eagle Bulletin* Business leaders, advocacy groups and others with an interest in corporate and stakeholder behaviour will find this book to be an important contribution. The papers provide a very readable guide to existing research. The extensive, up-to-date bibliography will prove invaluable to anyone interested in further exploring the issues . . . *Natural Resources Forum* . . . the volume demands detailed study. Overall, it moves the study of stakeholder theory from a legitimacy perspective . . . to an increasing concern with stakeholder dialogue, leading to engagement of stakeholders in organizational decision-making processes . . . *Social and Environmental Accounting* Back to the Top Contents Foreword (read online) R. Edward Freeman Introduction Sandra Sutherland Rahman, Framingham State College, USA; Sandra Waddock, Boston College, Carroll School of Management, USA; Jörg Andriof, KPMG, Germany; Warwick Business School, UK; Bryan Husted, ITESM/Instituto De Empresa, Mexico DOWNLOAD OR VIEW THIS INTRODUCTION ONLINE Part 1 Thinking about stakeholder theory 1. Unfolding stakeholder engagement Jörg Andriof, KPMG, Germany; Warwick Business School, UK Sandra Waddock, Boston College, Carroll School of Management, USA DOWNLOAD OR VIEW THIS CHAPTER ONLINE 2. Stakeholder thinking: beyond paradox to practicality Kenneth E. Goodpaster, T. Dean Maines and Michelle D. Rovang, University of St Thomas, USA 3. Value maximisation, stakeholder theory and the corporate objective function Michael C. Jensen, The Monitor Group and Harvard Business School, USA 4. Jensen’s approach to stakeholder theory Duane Windsor, Rice University, USA 5. Reintroducing stakeholder dynamics in stakeholder thinking: a negotiated-order perspective Suzanne Beaulieu, Université de Sherbrooke, Canada; Jean Pasquero, Université du Québec à Montréal, Canada Part 2 Stakeholder reponsibility and engagement 6. Towards a managerial practice of stakeholder engagement: developing multi-stakeholder learning dialogues Stephen L. Payne, Georgia College and State University, USA; Jerry M. Calton, University of Hawaii–Hilo, USA 7. Stakeholder responsibilities: lessons for managers Duane Windsor, Rice University, USA 8. The Carris Companies: making 100% employee governance the practice. Shifting stakeholder and citizen rights and responsibilities to the employees Cecile G. Betit, independent researcher, USA 9. The drivers of stakeholder engagement: reflections on the case of Royal Dutch/Shell Anne T. Lawrence, San Jose State University, USA 10. Stakeholder and corporate responsibilities in cross-sectoral environmental collaborations: building value, legitimacy and trust Dennis A. Rondinelli and Ted London, Kenan-Flagler Business School, University of North Carolina, USA 11. Two-way responsibility: the role of industry and its stakeholders in working towards sustainable development Gretchen E. Hund and Jill A. Engel-Cox, Battelle Memorial Institute, USA; Kimberly M. Fowler, Pacific Northwest National Laboratory, USA; Howard Klee, World Business Council for Sustainable Development, Switzerland 12. Who cares? Community perceptions in the marketing of corporate citizenship Debra King and Alison Mackinnon, Hawke Institute of Social Research, University of South Australia 13. Citizen advocacy groups: corporate friend or foe? Tamara J. Bliss, Center for Corporate Citizenship at Boston College, USA 14. Public-interest groups as stakeholders: a ‘stakeholder salience’ explanation of activism James E. Mattingly and Daniel W. Greening, University of Missouri, USA