Explicating Ethical Corporate Marketing. Insights from the BP Deepwater Horizon Catastrophe: The Ethical Brand that Exploded and then Imploded

Ethical corporate marketing—as an organisational-wide philosophy—transcends the domains of corporate social responsibility, business ethics, stakeholder theory and corporate marketing. This being said, ethical corporate marketing represents a logical development vis-a-vis the nascent domain of corporate marketing has an explicit ethical/CSR dimension and extends stakeholder theory by taking account of an institution’s past, present and (prospective) future stakeholders. In our article, we discuss, scrutinise and elaborate the notion of ethical corporate marketing. We argue that an ethical corporate marketing positioning is a prerequisite for corporations which claim to have an authentic ethical corporate identity. Our article expands and integrates extant scholarship vis-a-vis ethical corporate identities, the sustainable entrepreneur and corporate marketing. In delineating the breadth, significance, and challenges of ethical corporate marketing we make reference to the BP Deepwater Horizon (Gulf of Mexico) catastrophe of 2010.     

Learning from Multi-Stakeholder Networks: Issue-Focussed Stakeholder Management

From an analysis of the role of companies in multi-stakeholder networks and a critical review of stakeholder theory, it is argued that companies practise two different types of stakeholder management: they focus on their organization’s welfare (organization- focussed stakeholder management) or on an issue that affects their relationship with other societal groups and organizations (issue-focussed stakeholder management). These two approaches supplement each other. It is demonstrated that issue-focussed stakeholder management dominates in multi-stakeholder networks, because it enables corporations to address complex problems and challenges in cooperation with stakeholders. Since deliberation is the key to issue-focussed stakeholder management, it helps to cope with numerous and at times contradictory stakeholder demands and enhances the legitimacy of corporate activities. The research for this article was facilitated by the ESC Rennes Management Research Fund.     

Three Elements of Stakeholder Legitimacy

This paper focuses attention on the stakeholder attribute of legitimacy. Drawing upon institutional and stakeholder theories, I develop a framework of stakeholder legitimacy based on its three aspects—legitimacy of the stakeholder as an entity, legitimacy of the stakeholder’s claim, and legitimacy of the stakeholder’s behavior. I assume that stakeholder legitimacy is socially constructed by management and that each of its three aspects exists in degree in the manager’s perception. I discuss how these aspects interact and change over time, and propose an agenda for future research on stakeholder legitimacy.     

Beyond the Proxy Vote: Dialogues Between Shareholder Activists and Corporations

The popular view of shareholder activism focuses on shareholder resolutions and the shareholder vote via proxy statements at the annual meeting, which is treated as a “David vs. Goliath” showdown between the small group of socially responsible investors and the powerful corporation. This article goes beyond the popular view to examine where the real action typically occurs – in the Dialogue process where corporations and shareholder activist groups mutually agree to ongoing communications to deal with a serious social issue. Use of the capitalized word “Dialogue” is intended to distinguish this formal process between corporations and shareholders from all the other forms of dialogue or two-way communication exchanged between a corporation and its stakeholders. The phenomenon of Dialogue between a corporation and dissident shareholders has not been analyzed in the academic literature or in the popular press because it occurs behind the scenes and out of sight from media scrutiny. Yet this is where a great deal of social change initiated by shareholder activists is negotiated. This article contributes both theoretically and empirically to the study of Dialogues between shareholder activists and corporations. We explain how Dialogues occur in the context of the shareholder resolution process and examine two Dialogues that focus on international labor issues in two industries. Then data on Dialogues during the period, 1999–2005, from the Interfaith Center on Corporate Responsibility are analyzed. This research contributes to knowledge about the Dialogue process and the emerging literature on corporation–stakeholder engagement.     

Corporate social responsibility and gender equality: women as stakeholders and the European Union sustainability strategy

This paper examines how progress on gender equality in the field of corporate social responsibility (CSR) might contribute to broader EU gender and sustainability objectives. It focuses on corporations and citizenship, and on company stakeholder relations (SR) in particular. While the literature on SR has previously engaged with scholarship on feminist ethics, and in particular the 'ethics of care', this paper draws upon the feminist citizenship and feminist ethics literature, and upon gender mainstreaming strategy to suggest a more comprehensive approach to gender equality within SR. The aim is to extend our understanding of CSR as a potential policy instrument to advance gender equality.     

TNC Motives for Signing International Framework Agreements: A Continuous Bargaining Model of Stakeholder Pressure

Over the past decade, discussion has flourished among practitioners and academics regarding workers’ rights in developing countries. The lack of enforcement of national labour laws and the limited protection of workers’ rights in developing countries have led workers’ rights representatives to attempt to establish transnational industrial relations systems to complement existing national systems. In practice, these attempts have mainly been operationalised in unilateral codes of conduct; recently, however, negotiated international framework agreements (IFAs) have been proposed as an alternative. Despite their growing importance, few studies have empirically studied IFAs. This paper starts to fill this gap by studying why corporations adopt IFAs, based on a qualitative study of the process leading to the signing of a recent IFA. The study’s findings complement existing research into why corporations adopt IFAs, codes of conduct, and CSR policies by demonstrating that corporate motives can be linked to a desire to retain a trusting relationship with the labour union movement. In addition, the findings indicate that the discrete campaign model of stakeholder pressure dominant in previous research should be complemented by a continuous bargaining model of stakeholder pressure. The paper concludes by discussing differences between these conceptual models of stakeholder pressure and avenues for future research.

Moral Discourse and Corporate Social Responsibility Reporting

This paper examines voluntary corporate social responsibility (CSR) reporting as a form of moral discourse. It explores how alternative stakeholder perspectives lead to differing perceptions of the process and content of responsible reporting. We contrast traditional stakeholder theory, which views stakeholders as external parties having a social contract with corporations, with an emerging perspective, which views interaction among corporations and constituents as relational in nature. This moves the stakeholder from an external entity to one that is integral to corporate activity. We explore how these alternative stakeholder perspectives give rise to different normative demands for stakeholder engagement, managerial processes, and communication. We discuss models of CSR reporting and accountability: EMAS, the ISO 14000 series, SA8000, AA1000, the Global Reporting Initiative, and the Copenhagen Charter. We explore how these models relate to the stakeholder philosophies and find that they are largely consistent with the traditional atomistic view but fall far short of the demands for moral engagement prescribed by a relational stakeholder perspective. Adopting a relational view requires stakeholder engagement not only in prescribing reporting requirements, but also in discourse relating to core aspects of the corporation such as mission, values, and management systems. Habermas’ theory of communicative action provides guidelines for engaging stakeholders in this moral discourse. MaryAnn Reynolds is an Associate Professor of Accounting in the College of Business and Economics at Western Washington University. Dr. Reynolds teaches intermediate financial accounting and is published in the areas of corporate social, environmental and ethical reporting. Kristi Yuthas is the Swigert Endowed Information Systems Professor in the School of Business Administration at Portland State University. Dr. Yuthas teaches accounting and information systems and is published in the areas of social and ethical impacts of management information systems.     

Social Sustainability in Selecting Emerging Economy Suppliers

Despite the growing public awareness of social sustainability issues, little is known about what drives firms to emphasize social criteria in their supplier management practices and what the precise benefits of such efforts are. This is especially true for relationships with international suppliers from the world’s emerging economies in Asia, Latin America, and Eastern Europe. Building on stakeholder theory, we address the issue by examining how pressures from customers, the government, and employees as primary constituencies of the firm determine the extent to which firms consider social aspects in the selection of emerging economy suppliers. Further, we analyze how such socially sustainable supplier selection relates to the capabilities of the firm’s suppliers, its market reputation, and the learning in its supply management organization. We test the developed research framework empirically using data from 244 U.S. and German corporations. Our findings, consistent with our hypothesized model, suggest that middle-level supply managers as internal stakeholders play a major driving role for firms’ socially sustainable supplier selection, and that strong positive links exist between that selection and the investigated outcomes.     

The Social and Environmental Responsibilities of Multinationals: Evidence from the Brent Spar Case

This paper argues that multinational corporations face levels of environmental and social responsibility higher than their national counterparts. Drawing on the literatures of stakeholder salience, corporate reputation management, and evidence from the confrontation between Shell and Greenpeace over the Brent Spar, in 1995, two mechanisms – international reputation side effects, and foreign stakeholder salience – are identified and their contribution in creating an environment more restrictive, in terms of environmental and social responsibility, is elaborated on. The paper concludes with discussing the links of the work presented here with a number of ongoing debates within the filed of international business ethics, and the managerial implications of the two mechanisms identified.     

The Effect of Internal Barriers on the Connection Between Stakeholder Integration and Proactive Environmental Strategies

This paper examines the influence of internal barriers on the relationship between the organizational capability of stakeholder integration and proactive environmental strategies. We adopt a moderate hierarchical regression model to test the hypotheses using data from a sample of 73 managers in the business education industry. The paper contributes to stakeholder theory by showing that stakeholder integration positively influences the development of proactive environmental strategies when managers perceive internal barriers to the development of such strategies. This article also explores an ethical dilemma—managers may use the stakeholder integration capability to support their own interests rather than to benefit stakeholders.     

Corporate Social Responsibility (CSR): Models and Theories in Stakeholder Dialogue

The pharmaceutical sector, an industry already facing stiff challenges in the form of intensified competition and strategic consolidation, has increasingly become subject to a range of pressures. Crucially, in common with other large-scale businesses, pharmaceutical firms find themselves ‹invited’ to respond positively to the corporate ‹social’ responsibility (CSR) expectations of their stakeholders. Consequently, individual managers will almost certainly be obliged to engage in some form of stakeholder dialogue and this, in turn, means that they will have to make difficult choices about which practices to adopt. This real-world management predicament runs parallel to an academic interest in CSR stakeholder dialogue theory and models. Accordingly, the approach of this paper is to focus primarily on the academic debate surrounding stakeholder dialogue, by reviewing past attempts to research and theorise the subject, by identifying gaps and weaknesses in the literature, and by proposing a new analytical model. The central aim of the proposed new model is to offer a unified, structured, systematic, and comprehensive approach to CSR decision making whilst simultaneously providing a practical framework for CSR executives who face the challenge of responding in an effective manner to stakeholders. The model outlined here is currently being employed to conduct international comparative empirical research into stakeholder dialogue practices amongst UK and German pharmaceutical firms. In the longer term the intention is to use the model to undertake international comparative research encompassing a broader range of countries and industries.     

Asymmetric competition and collection rates differentials: determinants of prices in international telephone service markets

The paper investigates determinants of pricing in international telephone service markets. The analysis—focused on 24 worldwide national markets—shows the impact of several telecommunications-specific and macroeconomic variables on collection rate differentials and traffic imbalance between countries. An econometric model is aimed at performing quantitative analysis and providing support to future telecommunications policies.     

The Link Between Responsibility and Legitimacy: The Case of De Beers in Namibia

This article investigates the link between corporate social responsibility (CSR) practices and the reasons for which legitimacy is ascribed or denied. It fills a gap in the literature on CSR and legitimacy that lacks empirical studies regarding the question whether CSR contributes to organisational legitimacy. The problem is discussed by referring to the case of De Beers’s diamond mining partnership with the Government of Namibia. A total of 42 interviews were conducted—41 with stakeholders and one with the focal organisation Namdeb. The 41 stakeholder interviews are analysed with regard to cognitive, pragmatic and moral legitimacy as defined by Suchman (Acad Manage Rev 20(3):571–610, 1995). The main finding is that the majority of statements on organisational legitimacy refer to moral legitimacy and most issues raised in this context challenge the company’s legitimacy despite its comprehensive CSR engagement. The study demonstrates that legitimacy gaps can be a result of communication practices that raise unrealistic stakeholder expectations and that the legitimacy gained by CSR engagement in one area cannot substitute legitimacy losses caused by failures in another.     

Stakeholder Pressures as Determinants of CSR Strategic Choice: Why do Firms Choose Symbolic Versus Substantive Self-Regulatory Codes of Conduct?

To encourage corporations to contribute positively to the environment in which they operate, voluntary self-regulatory codes (SRC) have been enacted and refined over the past 15?years. Two of the most prominent are the United Nations Global Compact and the Global Reporting Initiative. In this paper, we explore the impact of different stakeholders?? pressures on the selection of strategic choices to join SRCs. Our results show that corporations react differently to different sets of stakeholder pressures and that the SRC selection depends on the type and intensiveness of the stakeholder pressures as well as the resources at hand to respond to those pressures. Our contribution offers a more specific and finely variegated analysis of firm-stakeholder interactions.     

Assessing Freeman’s Stakeholder Theory

At least since the publication of the monumental Strategic Management: A Stakeholder Approach (1984), the “stakeholder theory” originated by R. E. Freeman has engrossed much of the business ethics literature. Subsequently, some advocates have moved a bit too quickly and without proper definition or argument. They have exceeded Freeman’s intentions which are more libertarian and free-market than is often thought. This essay focuses on the versions of stakeholder theory directly authored or coauthored by Freeman in an effort to recover (1) Freeman’s intentions and (2) the argumentative justification of stakeholder theory. It then argues that Freeman’s appeal to legal, economic, and ethical constraints ultimately produce arguments that are invalid. One can thoroughly support legislation constraining corporations or seeking to prevent age discrimination, market monopolies, and externalities and regret the extent that capitalism is heir to such shortcomings without it following that (1) business beneficiaries should be changed from stockholders to stakeholders and (2) the latter should be given serious decision-making power. Further, stakeholder theory neither defines nor battles any obvious opposition. Hence, it is difficult to see what it changes about business management. In short, stakeholder theory either changes too much about business, or nothing important at all (depending on one’s interpretation). Efforts to supplant or improve the reigning theory of capitalism will have to do better.     

Conceptualizing data‐deliberation: The starry sky beetle,environmental system risk,and Habermasian CSR in the digital age

Building on an illustrative case of a systemic environmental threat and its multi‐stakeholder response, this paper draws attention to the changing political impacts of corporations in the digital age. Political Corporate Social Responsibility (PCSR) theory suggests an expanded sense of politics and corporations, including impacts that may range from voluntary initiatives to overcome governance gaps, to avoiding state regulation via corporate political activity. Considering digitalization as a stimulus, we explore potential responsibilities of corporations toward public goods in contexts with functioning governments. We show that digitalization—in the form of transparency, surveillance, and data‐sharing—offers corporations’ scope for deliberative public participation. The starry sky beetle infestation endangering public and private goods is thereby used to illustrate the possibility of expanding the political role of corporations in the digital sphere. We offer a contribution by conceptualizing data‐deliberation as a Habermasian variation of PCSR, defined as the (a) voluntary disclosure of corporate data and its transparent, open sharing with the public sector (b) along with the cooperation with governmental institutions on data analytics methods for examining large‐scale datasets (c) thereby complying with existing national and international regulations on data protection, in particular with respect to privacy and personal data.     

How Do European SME Owner–Managers Make Sense of ‘Stakeholder Management’?: Insights from a Cross-National Study

The vast majority of empirical research on stakeholder management has traditionally focused on multinational corporations. Only in recent years, scholars have begun to pay attention to the stakeholder management concept in relation to small- and medium-sized enterprises (SMEs). The few existing studies in this area, however, discuss SMEs as a context free category or remain focused on single country analysis. This cross-national empirical research investigates SME owner?Cmanagers?? perceptions of stakeholder management in six European countries. The comparative analysis is followed by a discussion of how institutional, cultural and linguistic contexts can influence owner?Cmanagers?? sensemaking of stakeholder management. Our study questions the universality of specific management terms and proposes that more attention should be paid to the institutional, cultural and linguistic environments that shape economic activity in different parts of Europe.     

The Stakeholder Corporation

The stakeholder debate continues unabated in Britain in various arenas of public life and activity. "While recognising the societal holism of the stakeholder concept this article concentrates on the debate at a business level, discussing whether stakeholding is ethical, attainable, or even appropriate to business corporations". The author is completing his MBA at London Business School and has a background of consulting in organisational and IT analysis.