This paper uses basic concepts from sociological process theory to assess new forms of public management in innovation policy and their relevance to business strategy. We describe this policy process as chains of events, outcomes, and re-coupling. It is argued that these process sequences occur in three analytically separate domains, namely the social, the cultural, and the cognitive domain. The paper identifies three collective learning variables of cooperation, collectivity, and content, to arrive at an explanatory scheme to systematically investigate business strategy in complex process dynamics.

The purpose of this paper is to examine how multinational enterprises and their subsidiaries (MNEs) can respond to violent conflict in the host countries where they operate, and how the characteristics of the conflict affect the types of intervention strategies that MNEs may adopt. Drawing on insights from the research on conflict resolution and the risk that violent conflict poses to the firm, we develop a framework and several propositions that provide guidance to MNEs confronting violent conflict with respect to existing projects or facilities.

This paper investigates how country-specific political institutions affect patterns of business political behavior. In particular, we focus on how firms developpolitical resources, what kinds of strategies they use and how the resources and strategies affect a firm’s performance in various country environments. Drawing on the institutional perspective, we posit that political institutional arrangements in a country are a central determinant for business political behavior. Survey data from two countries (the Netherlands and Finland) are utilized in order to test our hypotheses.

This paper develops a measurement tool for corporate political activity (CPA) by applying a resource-based view with a focus on political resources. In addition, path-dependence theory is used to examine inertial consequences of the trade-off between corporate stakeholder relationships, namely, between politics and customers. The following research questions are addressed: How can CPA be measured? And can CPA lead to strategic inertia over time? The empirical analysis is based on survey data primarily collected at 218 major German companies. The results give new insights into today’s CPAs within the German market. Using explorative factor analysis, four components are identified: activities, function, public affairs, and strategy.

In the earlier literature the importance of public policies and regulatory changes to firm performance and competitive position has been well established (e.g., Bonardi, 2004). However, little research has been done on the dynamics of this relationship. In this paper, we examine how and why regulatory changes can affect on the evolution of market and nonmarket strategies of a firm. We use a longitudinal case study on Finnish retail industry to illustrate the interactions between regulatory change, strategic responses and firm performance.

This paper argues for the existence of two levels of stakeholder dialogue: a micro and a macro level. The first is the one companies have with their own stakeholder groups, the second is a broader social debate among different agents about the role of business in society. The paper argues why the macro level matters for CSR and why it can be called a dialogue. It also underlines the importance of mutual perceptions in the macro-dialogue. For this purpose we present a research done in Spain about how different stakeholder groups perceive each other in relation to CSR and how they perceive the dialogue process.

Consumers have the power to influence the social performance of corporations, but in the United States this power has gone largely unused. And too little attention has been paid to consumer issues by IABS scholars. To better understand why and when consumer boycotts are either effective or successful, this paper studies the reaction to two oil industry incidents: the Exxon Valdez oil spill in Alaska and the Shell Oil Brent Spar controversy. Five ingredients are identified as important to the understanding of consumer activism: culture, context, cause, challenge, and charisma.

In this paper, we explore the interests of non-shareholder stakeholders in the context of a shareholder risk model. We first differentiate shareholders and nonshareholders with regard to the nature of their risks, their awareness of risks, their abilities to avoid risk, and their abilities to ensure compensation for risk. We then develop a model of measuring the risks facing stakeholders that addresses human risk magnitude and environmental risk magnitude. We conclude with implications for theory and practice.

How do activist groups instigate institutional change within an organizational field? Studying the global sports and apparel industry, we explore how activist groups applied different tactics over time, including conflict and collaboration, and how the accumulation of these tactics led to the build-up of pressure on firms within the industry to change their policies and activities on labor issues in their supply chains. Building on interorganizational conflict literature, we show how an industry-level approach is helpful to understand the sequential patterning of tactical choices in evoking institutional change. These findings contribute to the growing literature of activists’ influence strategies.

This paper examines the potential contribution of structuration theory to an understanding of firm-stakeholder networks. Central ideas of structuration theory areintroduced in an examination of the structure of networks and interactions between a firm and its stakeholders within the network. Based on those concepts, implications are derived regarding the description of a firm-stakeholder network and the related identification of stakeholders on the one hand and the design of interactions with stakeholders on the other hand.

In this workshop, a decentered approach to stakeholder theory is proposed, where a shared network problem, rather than a firm, frames stakeholder interactions. Two case studies are presented to illustrate the potential usefulness of adopting a decentered perspective on firm-stakeholder relations. Multi-stakeholder learning dialogues and actor-network theory are introduced as examples of possible theoretical frameworks that allow the adoption of a decentered perspective.

Stakeholder theory is now nearly mainstream among business ethics and business and society scholars but it has serious problems. One is well communicated by a quote from W. H. Auden: "We are here on earth to do good for others. What the others are here for, I don't know." More to the point, stakeholder theory violates private property rights and freedom of association. It makes of people in business involuntary servants of "society," mainly of self-appointed moralists. This paper explores stakeholder theory or CSR along these lines.

We synthesize literature from organization theory and political sociology to develop a conceptual lens from which organizing can be examined as a process whereby institutional structures are changed in ways similar to how social movements change entire societies. Implied is that hegemonic power structures maintain existing institutional structures by either resisting insurgencies or by making them seem senseless in the first place.

The bottom of the pyramid (BOP) concept suggests that business has a vital role to play in meeting the unmet needs of the 4 billion poorest people on the planet. Serious advances in research on bottom of the pyramid business will require effective evaluation of the social impacts these businesses are having on the people they are supposed to benefit. Evaluation will allow us to identify conditions in which specific business interventions can address unmet needs fairly and effectively. Theory-driven evaluation offers an approach to assessing the successes and limitations of BOP businesses by exploring why a venture does or does not achieve its social objectives. The experience of AIG Uganda in the microinsurance business illustrates the insights possible from applying theory-driven evaluation.

This contribution provides theoretical insights into a planned dissertation project which discusses the mass media as a stakeholder of a company, suggesting that a complex understanding of the mass media, their public-sphere function and their mode of operation is crucial for analyzing the media’s role in conferring corporate legitimacy. Terms such as ‘corporate citizen’ or ‘stakeholder democracy’ or the notion of corporations as civil or political actors imply a link to the public sphere, which in modern democracies is primarily constituted through the mass media. However, up to now, there has been hardly any discussion about the role of the mass media and the public sphere in the realm of stakeholder theory.

In this paper we aim to show that based on an effective stakeholder management corporations are able to build and maintain three important licences tosuccessfully fulfil their fundamental value creation task, namely the licence to operate, the licence to compete and the licence to innovate. The corporation is regarded as an institution engaged in mobilizing resources for productive uses in order to create wealth with and for its stakeholders. Our concept of the three licences is based on the widely discussed (e.g. Bracken, 2003; Buono, 2003; Caldwell, 2004; Jones, Wicks, & Freeman, 2002; Lamont, 2004; Walsh, 2005) “Stakeholder View” framework by Post, et al. (2002) which concerns the firm’s interactions with its stakeholders. Our concept of the three licences is supported by the results of our qualitative case research in the financial services and the telecommunications industry

Practitioners and leading scholars emphasize the need of integrating the notion of stakeholder more systematically into strategy theory. In corporate reality, this process has been on its way for quite some time because companies realized that a one-sided orientation to short-term shareholder value is a too narrow conception for strategic management, especially since firms’ strategically relevant resources today are not purely of financial nature but most importantly knowledge oriented. This paper will evaluate some insights into good practices of strategic stakeholder management in the financial services industry and the telecommunications industry of Switzerland in order to stimulate the ongoing learning process in strategic stakeholder management. The results do support appropriateness of stakeholder management in situations of turbulence and as useful extension of conventional approaches in strategic management.

The aim of this paper is to explore the roles of religion and culture in how firm-stakeholder relationships evolve and are managed. It uses an ‘embeddedness’ framework (Granovetter, 1983; Uzzi, 1997, 2003) as its theoretical frame of reference to study how and why culture and religion can influence the varying types of ties that constitute firmstakeholder relationships.

In 1994, the Argentine Inland Revenue service investigated a case of suspected tax evasion that became more newsworthy when it was discovered that $37 million bribes were paid by IBM Argentina, the subsidiary of Armonk, New York-based International Business Machines Corp. The bribes were paid to Argentine government officials to land a $250 million contract to modernize the state-owned Banco de la Nación Argentina, which was and still is the country’s largest bank. The IBM IN ARGENTINA series introduce the legal and ethical dilemmas that managers face when the moral standards at the host country appear to be lower than at those at home and highlight the consequences that managers may suffer when they perform illegal/immoral activities on behalf of the firm. Intended audience, teaching objectives, research methods, and sample questions are briefly discussed in this summary.