Disciplines

Managing for stakeholders: concepts and application


Discipline: EAD5984-1

Concentration area: 12139

Number of Credits: 4

Course load:

Theoretical
(Per week)
Practice
(Per week)
Studies
(Per week)
DurationTotal
848360
Goals:
• To show evidence from behavioral economics and social psychology in the Stakeholder Theory by suggesting that firms face a population of potential stakeholders that consists not only of so-called ‘reciprocators,’ who do care about fairness but also of self-regarding stakeholders, who do not.
• To discuss the microfoundations of the Stakeholder Theory, revealing new avenues of academic research in this field.

At the end of the course, the student is expected to:
• Be able to understand the premises of why a fairness approach is more effective in attracting, retaining, and motivating reciprocal stakeholders to create value, while an arms-length approach is more effective in motivating self-regarding stakeholders and in attracting and retaining self-regarding stakeholders with high bargaining power.;

Justification:
Instrumental stakeholder theory proposes a positive relationship between fairness toward stakeholders and firm performance. Yet, some firms are successful with an arms-length approach to stakeholder management, based on bargaining power rather than fairness. Acknowledging heterogeneity of stakeholder motives helps explain that some firms can be successful by ignoring fairness considerations and adopting an arms-length approach to stakeholder management that is strictly based on relative bargaining power. That said, it is important to reflect on new possibilities of research in Stakeholder Theory in order to better understand the nuances of both fairness and arms-length approaches.

Content:
-Stakeholder Theory;
-Stakeholder Analysis;
-Stakeholder Strategy;
-Stakeholder Management;
-Stakeholders and Value.

Avaliation methods:
Delivery of paper (in double) in a minimum standard for publication.

Notes:
Discipline in English

Bibliography:
Agle, B. R., Mitchell, R. K, Sonnenfeld, J. A. 1999. Who Matters to CEOs? An investigation of stakeholders attributes and salience, corporate performance and CEO values. Academy of Management Journal, 42(5): 507-525.
Berman, S. L., Wicks, A. C., Kotha, S., Jones, T. M. 1999. Does stakeholder orientation matter? The relationship between stakeholder management models and firm financial performance. Academy of Management Journal, 42(5): 488-506.
Boesso, G., Michelon, G. 2010. The Effects of Stakeholder Prioritization on Corporate Financial Performance: An Empirical Investigation. International Journal of Management, 27(3): 470-496.
Bosse, D. A., Coughlan, R. 2016. Stakeholder relationship bonds. Journal of Management Studies, 53(7): 1197-1222.
Bosse, D. A., Phillips, R. A. 2016. Agency theory and bounded self-interest. Academy of Management Review, 41(2): 276-297.
Bosse, D. A., Phillips, R. A., Harrison, J. S. 2009. Stakeholders, reciprocity, and firm performance. Strategic Management Journal, 30(4): 447-456.
Bridoux, F., Coeurderoy, R., Durand, R. 2017. “Heterogeneous social motives and interactions: the three predictable paths of capability development”. Strategic Management Journal, 38(9).
Bridoux, F., Stoelhorst, J. W. 2014. Microfoundations for stakeholder theory: Managing stakeholders with heterogeneous motives. Strategic Management Journal, 35(1): 103-125.
Bridoux, Flore, and Stoelhorst, J.W. 2016. “Stakeholder relationships and social welfare: A behavioral theory of contributions to joint value creation.” Academy of Management Review, 41(2): 225–251.
Bridoux, Flore, Stofberg, Nicole, and den Hartog, Deanne. 2016. “Stakeholders’ responses to CSR tradeoffs: When other-orientation and trust trump material self-interest”. Frontiers in Psychology.
Clarkson, M. B. E. 1995. A stakeholder framework for analyzing and evaluating corporate social performance. Academy of Management Review, 20(1): 92-117.
Donaldson, T., Preston, L. E. 1995. The stakeholder theory of the corporation: concepts, evidence and implications. Academy of Management Review,20(1): 65-91.
Freeman, R. E. 1984. Strategic Management: A Stakeholder Approach. Boston, MA: Pitman.
Freeman, R. E., Harrison, J. S., Wicks, A. C., Parmar, B. and de Colle, S. 2010. Stakeholder Theory: The State of the Art. Cambridge: Cambridge University Press.
Freeman, R. E., Wicks, A. C. and Parmar, B. 2004. Stakeholder theory and “The corporate objective revisited”. Organization Science, 15(3): 364–69.
Frooman, J. 1999. Stakeholder influences strategies. Academy of Management Review, 24(2): 191-205.
Gioia, D. A. 1999. Practicability, paradigms, and problems in stakeholder theorizing. Academy of Management Review, 24(2): 228-232.
Goodpaster, K. E. 1991. Business ethics and stakeholder analysis. Business Ethics Quarterly, 1(1): 53-73.
Harrison, J. S., Bosse, D. A. 2013. How much is too much? Limits to generous treatment of stakeholders. Business Horizons, 56(3): 313-322.
Harrison, J. S., Bosse, D. A., Phillips, R. A. 2010. Managing for stakeholders, stakeholder utility functions, and competitive advantage. Strategic Management Journal, 31(1): 58-74.
Harrison, J.S, Freeman, R.E. 1999. Stakeholders, social responsibility, and performance: empirical evidence and theoretical perspectives. Academy of Management Journal, 42: 479–485.
Jones, T.M. 1995. Instrumental stakeholder theory: a synthesis of ethics and economics. Academy of Management Review, 20: 404–437.
Jones, T.M., Wicks, AC. 1999. Convergent stakeholder theory. Academy of Management Review, 24: 206–221.
Mitchell, R, Agle, B.R., Wood, D.J. 1997. Toward a theory of stakeholder identification and salience: defining the principles of who and what really counts. Academy of Management Review 22: 853–886.
Mitroff, I. I. 1983. Stakeholders of the organizational mind: toward a new view of organizational policy making. San Francisco: Jossey-Bass Publishers.
Neville, B. A., Bell, S. J., Whitwell, G. J. 2011. Stakeholder Salience Revisited: refining, redefining, and refueling an underdeveloped conceptual tool. Journal of Business Ethics, 102(3): 357-378.
Parent, M. M., Deephouse, D. L. 2007. A Case Study of Stakeholder Identification and Prioritization by Managers. Journal of Business Ethics, 75(1): 1-23.
Phillips, R. 1997. Stakeholder Theory and a Principle of Fairness. Business Ethics Quarterly, 7(1): 51-66.
Phillips, R. A. 2003. Stakeholder Theory and Organizational Ethics. San Francisco, CA: Berrett-Koehler Publishers.
Phillips, R. A., Freeman, R. E. and Wicks, A. C. 2003. What stakeholder theory is not. Business Ethics Quarterly, 13(4): 479–502.
Priem, R. L. 2007. A consumer perspective on value creation. Academy of Management Review, 32(1): 219–235.
Priem, R. L., Butler, J. E., Li, S. 2013. Toward reimagining strategy research: retrospection and Prospection on the 2011 AMR decade award article. Academy of Management Review, 38(4): 471–489.
Tantalo, C., Priem, R. L. 2014. Value creation through stakeholder synergy. Strategic Management Journal, 37(2): 314-329.
Vazquez-Brust, D. A. V.., Liston-Heyes, C., Plaza-Úbeda, J. A, Burgos-Jiménez, J. 2010. Stakeholders Pressures and Strategic Prioritisation: an empirical analysis of environmental responses in Argentinean firms. Journal of Business Ethics, 91: 171-192.
Wood, D.J., Jones, R.E. 1995. Stakeholder mismatching: a problem in empirical research on CSP. International Journal of Organizational Analysis, 3(3): 229–267.