Tag Archives: Stakeholder Theory

Components, theories and the business case for Corporate Social Responsibility (Published)

Though the relationship between business and society has been widely studied for decades, there are varying perspectives in the literature of a corporation’s responsibility to society, and many corporate managers have struggled with the issue of a corporation’s responsibility to a broader range of stakeholders beyond its shareholders. Contemporary advocates of corporate social responsibility (CSR) argue that business organizations have a responsibility not only to their respective shareholders but also to other stakeholders, such as, employees, customers’ suppliers, and the community in general, among others. However, a conservative view of corporate social responsibility (CSR) suggests that the only true purpose of a corporation is to generate maximum profits and promote the interests of its shareholders within the law by responding effectively to market demand through the production of goods or services. Though there is no singular universally accepted definition of CSR in the literature, in this descriptive and theoretical research paper, I synthesize the literature and identify many different forms of definitions of CSR from the point of view of various researchers. In this paper, I also attempt to further the theoretical debate about corporate social responsibility (CSR) by highlighting the main components and theories of CSR in the literature. Thereafter, I articulate the business case for CSR or the justification why business executives may be motivated to allocate resources to engage in CSR activities. I conclude this paper by outlining its contributions.

Keywords: Competitive Advantage, Corporate Social Responsibility, Stakeholder Theory, corporate citizenship, shareholder theory, social contract, synergistic value creation

Contribution of Green Orientation for the Organizational Performance: A Review of Stakeholder Relationships and Ecological Modernization Perspectives on Sustainability (Published)

Despite the fact that sustainability has become ever more important for business organizations today, sustainability initiatives in the social, environmental, and economic perspectives are still not properly integrated with each other or funneled down into the organizational level. Strategic green orientation (SGO) is derived from market orientation to adequately integrate the social, economic, and environmental perspectives as a new paradigm for the implementation of sustainable development principles at the business organizational level. This article attempts to explore the theoretical basis of SGO. This review builds on the stakeholder and ecological modernization theories to investigate the critical determinants of SGO and how it integrates the three different perspectives of sustainability to convert them for superior performance.   Based on theoretical foundations, this article explores a causal relationship between SGO and organizational performance that may stimulate further research and direct actions by decision makers and managers on sustainability perspectives in different industries such as tourism.   

Keywords: Business Organizations, Ecological Modernization Theory, Stakeholder Theory, Strategic Green Orientation, Sustainability