International business organizations are regularly addressed on their corporate social responsibility (CSR). As illustrated in this paper, it is not yet clear exactly what CSR means to organizations and how to deal with it. In this paper, the authors explore how a sensemaking approach helps to understand the business challenges of CSR within an organizational context. The theories of Karl Weick are applied to the experiences of CSR in Royal Dutch Shell. The authors argue that the key to CSR in international business organizations is to engage stakeholders and start a process of joint sensemaking. Three main competencies are crucial in this: the competency to engage stakeholders through listening and understanding; the creation of an organizational language so that CSR makes sense to members of the organization; and recognizing the momentum of taking action.
Purpose
Stakeholder management is often primarily seen as maintaining external relations. However, it also has specific consequences for the internal processes of an organization and the behavior of its people. The authors argue that an organization that is meeting the standards of the high-performance organization (HPO) is able to effectively maintain valuable relationships with its stakeholders. The authors discuss in this paper how high-performance stakeholder management can be achieved and applied to stakeholder relationships.
Design/methodology/approach
Based on a discussion of the stakeholder management and the HPO framework concepts the authors show that good stakeholder management requires strong communication and dialogue within an organization, which in turn requires a strong internal organization, which the HPO framework can offer. This paper is written from the assumption that the two theories reinforce each other in their aims and methodologies. This argument is based on a case study.
Findings
The authors illustrate the argument with the application of both concepts at a case company. The case study makes clear that an organization that develops stakeholder management will be wise to examine its own internal quality and strength, using the HPO framework. If the organization views the information that comes from stakeholder management as very valuable, then internal organizational consequences must follow.
Originality/value
The concepts of stakeholder management and HPO Framework have not been connected before, neither in a theoretical nor a practical way. This offers the opportunity for theorists to further deepen the connection between the two, and practitioners to benefit from strengthening their stakeholder management.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.