Attention allocation to multiple goals: The case of for-profit social enterprises

Stevens, Robin; Moray, Nathalie; Bruneel, Johan; Clarysse, Bart

doi:10.1002/smj.2265

Cited by 125 publications

(147 citation statements)

References 64 publications

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“…Companies may need to dedicate a large amount of time and resources, diverting limited managerial and employee attention away from exploiting new business opportunities to grow [69,70], and instead, focusing on internal changes to satisfy B Lab requirements. This could have a negative impact on some companies' short-run growth, mainly in those which are smaller and younger, suffer from a lack of resources or have an immature organizational structure [71,72]. Other researchers have also observed a decline in the growth of the certified firms that is more noticeable in younger and smaller companies [73].…”

Section: Governancementioning

confidence: 99%

Main Factors for Understanding High Impacts on CSR Dimensions in the Finance Industry

et al. 2020

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The objective of this study is to explore empirically the dimensions that generate high impact in the finance industry to better understand its contribution from a Corporate Social Responsibility (CSR) perspective. We analyze data concerning impacts of finance sector firms certified by B Corp in order to identify the combinations that are necessary and/or sufficient to obtain a recognition of their high impact generation. The methodology followed to identify the impact dimensions is fsQCA, (fuzzy set Qualitative Comparative Analysis), a qualitative comparative analysis method applied to a sample of finance firms (n-181). The results indicate that financial sector firms exhibited four combinations focusing on different impact dimensions. Specifically, the first route indicates that a high degree of focus on customers and communities is sufficient to obtain a high impact score. The second path signals that the combination of the impacts on customers and corporate governance could lead to the same result, while in the third pathway the focus would be on the employees. Finally, the fourth route indicates that some financial firms focus strongly on their communities, corporate governance and their employees, but very weakly on the environmental dimension. Consequently, diverse combinations of CSR dimensions characterize financial sector contributions to impact generation and sustainable development.Sustainability 2020, 12, 2395 2 of 17 particular, the finance industry, related to their corporate sustainability strategies [7]. Thereby, as B Corp firms gain recognition for their high impact on their CSR dimensions, this also represents an opportunity to balance their business activities in order to pursue financial, social and environmental positive contributions [8]. Furthermore, as companies can create an impact in several ways, it is useful for academics and practitioners to analyze the different routes followed by companies in the finance sector certified as high-impact firms, showing which dimensions are relevant for firms. Moreover, to explore these dimensions, we analyze the literature concerning impacts in the finance sector, which has shown an increasing interest in CSR and sustainable development in recent years [9].Therefore, this study aims to study the necessary and/or sufficient combinations of dimensions for the finance industry, in order for them to be recognized for their high impact generation using the B Corp dimensions. The methodology followed was fuzzy-set qualitative comparative analysis (fsQCA), and we analyzed the impact of B-Corp dimensions in a sample based on financial sector firms (n=181) in the B-Corp 2018 database, which includes the scores resulting from the certification process of these firms related to the five dimensions. This exploratory study is the first study analyzing the B Corp database with the fsQCA method, which facilitates the identification of causal relationships within the results [10]. Moreover, it provides useful information for strategic decisions of companies regardin...

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Section: Governancementioning

confidence: 99%

Main Factors for Understanding High Impacts on CSR Dimensions in the Finance Industry

et al. 2020

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“…It has generally been demonstrated in the literature that organizational culture shapes managerial cognition and perception. For instance, Ocasio (1997) and Stevens, Moray, Bruneel, and Clarysse (2015) suggest that organizational culture specifies the 'rules of the game' and determines where decision makers allocate their attention. Also, as noted earlier, Mitchell et al (2011, p. 237) argue that 'socially constructed, historical patterns of material practices, assumptions, values, beliefs, and rules', embedded in the organizations' institutional logics (i.e.…”

Section: Hypotheses Developmentmentioning

confidence: 99%

The effect of stakeholder culture on managers’ perceptions of stakeholder attributes in Australian not‐for‐profit organizations

2019

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We examine the relation between stakeholder culture and managers’ perceptions of stakeholder attributes of power, legitimacy, and urgency in Australian not‐for‐profit (NFP) organizations. Examination of this relation is important because managers’ perceptions of stakeholder attributes determine how stakeholder relationships are managed, which affects (positively or negatively) the ability of NFP organizations to fulfil their social mission. Data were collected through a survey of top managers of 478 NFP organizations. Our results show that the stakeholder cultures of altruist and instrumentalist, manifesting different moral values, differentially affect NFP managers’ perceptions of the three stakeholder attributes for clients and government. Specifically, an altruist stakeholder culture affects managers’ perception of client legitimacy, while an instrumentalist culture affects managers’ perception of government power. We also investigate the mediating effects of power and legitimacy on the relation between stakeholder cultures and urgency. We find that managers’ perceptions of power and legitimacy act as crucial cues for managers to perceive stakeholder urgency. Our study contributes to the stakeholder management literature and has important implications for managers of NFP organizations in managing stakeholder relationships in the contemporary environment.

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“…ROA demonstrates how profitable a company is relative to its total assets and gives an idea as to how efficient the company is at using its assets to generate earnings. It is thus often used as a measure of firm quality (Chung & Luo, 2013;Stevens et al, 2015). P/E ratio measures how much investors are willing to pay per dollar of earnings and shows market expectations for a company's growth (Desarbo & Grewal, 2008;Lev & Nissim, 2004;Pandher & Currie, 2013).…”

Section: Subsample Analysesmentioning

confidence: 99%

How Do Social Media Affect Analyst Stock Recommendations? Evidence from S&P 500 Electric Power Companies' Twitter Accounts

Kim

Youm

2017

Strategic Management Journal

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Research summary: The importance of firm‐stakeholder relationships is gaining increasing attention. Although a theory of the drivers and consequences of stakeholder pressure has been developing, it focuses on pressures from organized stakeholders such as shareholders, NGOs, and activists, and does not incorporate the emerging possibility that individual voices may matter. By exploring corporate Twitter, which facilitates movement of individual stakeholders such as customers to a higher stakeholder class by providing them with a greater sense of power and urgency, we study the circumstances under which customer voices significantly affect analyst stock recommendations. We find that favorable reactions to firm‐initiated messages matter, directly or indirectly, depending on the messages' growth implications. Customer‐initiated negative messages have a significant impact only with high volume and formal institutions that support customer opinions. Managerial summary: Social media is increasingly used by firms for disclosing information and engaging stakeholders. Yet, we know little about whether and how social media usage matters. We show how corporate Twitter usage may influence analyst stock recommendations. Our interviews of securities analysts suggest that social media is not institutionalized yet, but increasingly used as a source of channel checks, especially for vibes, validations, and so on. Our analyses of corporate Twitter accounts show that both firm‐initiated and customer‐initiated tweets can have significant impact on analyst recommendations under certain conditions. For firm‐initiated tweets, the extent of retweets is an important factor, along with the content of tweets, in particular, growth implications. For customer‐initiated tweets, negative tweets matter, but only with high volume and regulatory structure that supports customer protection. Copyright © 2017 John Wiley & Sons, Ltd.

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Attention allocation to multiple goals: The case of for-profit social enterprises

Cited by 125 publications

References 64 publications

Main Factors for Understanding High Impacts on CSR Dimensions in the Finance Industry

Main Factors for Understanding High Impacts on CSR Dimensions in the Finance Industry

The effect of stakeholder culture on managers’ perceptions of stakeholder attributes in Australian not‐for‐profit organizations

How Do Social Media Affect Analyst Stock Recommendations? Evidence from S&P 500 Electric Power Companies' Twitter Accounts

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