This paper draws on a stakeholder model of the firm and the literature of welfare economics, business best practices, and business ethics to explore, and hopefully to help in designing a new institutional link between "doing good" and "doing well." This link may be found in the relationship between inside" and "outside" Pareto optimality (ipo and opo). This link suggests that business "best practice" can be inside Pareto efficient (a necessaiy condition for ipo) and also how ipo can contribute to outside Pareto optimality (opo). Propositions will be offered to heuristically specify "best practice" within compensation and govemance arrangements that will build trust between managers and stakeholders while enhancing the performance of oiganizations and the welfare of society as a whole.

This paper reports a case study of the learning - action network of a major Dutch foods company, which is characterized by many noncooperative relationships with NGOs due to the recent introduction of genetically modified ingredients. The study shows that companies can build capabilities in a hostile environment, but that the building process and the content of the capabilities are significantly different from capability building in a cooperative context

This paper describes and evaluates the research questions addressed by social science-based stakeholder theory. It presents a typology of research questions, based on a review of recent literature and discusses the alignment between the questions asked and the common goals of stakeholder theory. Four potential streams of future work are outlined.

We argue that psychological concepts such as identification and affiliation can influence the course of a relationship between an organization and the stakeholder. Our study proposes a typology of stakeholder image management which explains and predicts how individual members of stakeholder groups are likely to react to organizational success (image enhancement) and failure (image protection). We test the typology through a content analysis of newspaper accounts of a recent scandal in Pittsburgh where a priest stole more than one million dollars from his churches' coffers.

Since 1984 (with the publication of Freeman's seminal work), the stakeholder model has become perhaps the most prominent frame for business and society research. While stakeholder analysis has come a long way, a true stakeholder theory is still not extant. After briefly analyzing the state of the extant stakeholder literature, we offer a modest proposal for making stakeholder analysis a true theory that competes effectively with models of the firm based on neoclassical economics theory. Despite agreeing on this proposal, the two authors disagree about what stakeholder theory should look like, and the paper ends with each author offering his or her ideas and responding to the other author's.

This paper develops the theory that trust should be considered as a multi level phenomenon that is present at micro and macro levels of firm-stakeholder relationships. It establishes a key link between organizational identity management and the building and reinforcement of trust in cooperative relationships, in that stakeholders and managers or their firms use organizational identity to build and reinforce trust in cooperative relationships.

This paper advocates an expansive view for classifying firm-stakeholder relationships. We argue that an expansive view would take into account both structural components such as power and legitimacy, and relational components such as dynamics, social context, trust, reciprocity, goodwill, communication and learning. We then present a typology that classifies firm-stakeholder relationships according to the levels of structural and relational components present in a given relationship.

While law and stakeholder theory have been traditionally viewed as lying at odds, the purpose of this paper is to show how this is not the necessarily the case. In fact, principles of law—specifically torts, property, and contract law—actually contribute toward the foundation of stakeholder theory.

This paper develops the business exposure concept (Miles, 1987) to provide insight on stakeholder and institutional influences on corporate social performance in the form of corporate giving. The work on business exposure by Miles has been adapted and generalized by Saiia (1999) and related to the level of corporate giving, and more specifically to strategic orientation in corporate giving. The methods used in this research (based on a survey completed in 1999) are presented and the findings and inplications are discussed. The fact that a significant relationship is found between business exposure as measured in this research and corporate philanthropy indicates that a more generally accessible measure of business exposure would be useful for future research in corporate social responsibility (CSR) and corporate social performance (CSP).

The central purpose of this paper is to develop a set of normative principles that builds on (social) contiact theory and that allows us to (a) judge the quality of stakeholder relationships, and (b) offer suggestions for their improvement We derive these principles from confronting two characteristics of contractarianism in general with two behavioral assumptions that characterize the economic sphere.

Multinational companies are confronted with many different cultures in the various countries in which they operate. For successful intemational stakeholder management these differing environmental settings have to be taken into consideration. This paper intends to show how specific cultures can influence the stakeholder identification process, based on the findings of Hofstede's extensive empirical research and the stakeholder identification framework of Mitchell, Agle, and Wood (1997).

The quality of health care in hospitals has been under considerable scrutiny over the last several years. Often patient issues or claims are settled out of court, while the underlying problem of poor medical care persists. This paper borrows from the political science literature and uses agenda building theory to describe a process that patient victims can use to bring medical incompetence into awareness of regulatory agencies and the general public. En route to this goal, a typology is drawn to illustrate initial hospital issues management at a micro level.

This handbook identifies significant concepts that have been developing under the label of "qualitative research" over the past ten years. Copies of this material were distributed at a workshop during the conference. We find much that is valuable for business and society scholars to improve rigor and sophistication in qualitative research. We encourage our colleagues to consider what qualitative research methods offer our field.

How can photography be a tool to advance objecdves in teaching? During an innovative-format session we displayed one audior's photographs as well as projects by students. Four colleagues then presented photographic essays they prepared during the conference. Lively discussion helped us consider new ways to employ photography in teaching.

One of the implicit goals of service leaming and community service projects that students are required to participate in is the fostering of empathy. Often this is stated as a learning objective which focuses on a desire for students to increase their understanding of and knowledge about the poor. This implicit goal has not been empirically tested. The purpose of this reasearch is to measure individual changes in student empathy after participation in service leaming projects using validated empathy scales (Davis, 1995) to assess whether service learning projects strengthen empathy.

This paper is intended as a resource for instructors who wish to consider incorporating Ayn Rand's (1961a) Objectivist ethics into their business ethics courses. Two factors suggest that such an addition to the curriculum is warranted. The theory has been increasingly visible in both the academic and practitioner management press, yet most business students leave their programs with little if any understanding of her philosophical tenets. In addition, business-ethics instructors' most adamant free-market students may be swayed to behave more ethically if presented with a moral system that incorporates their existing beliefs.