Stakeholder Management and Nonparticipation in Controversial Business

Abstract

The main objective of this research is to provide knowledge on the impact that nonparticipation in controversial business can have on corporate financial performance. Accordingly, the stakeholder theory perspective was adopted and the effect of nonparticipation in controversial business on corporate financial performance was tested by using market-based and accounting-based economic measures. In addition, the effect of primary stakeholders' management activities on corporate financial performance was tested, whereby it can be seen whether this nonparticipation in controversial business reveals a different causal relationship with certain aspects of economic performance.

Sustainable Evolution for Global Business: A Synthetic Review of the Literature

“…Suggesting the concept of 'nurture capital' in place of 'dominator capital' pursued by traditional businesses, Swenson (1996) earlier argued that businesses should be transformed from a pattern of domination to that of cooperation based on their relationships with affected entities. Numerous other researchers have contributed to understanding how the stakeholder theory can guide managerial decision and behavior in relation to CSR and sustainability (Wheeler & Sillanpaa, 1997, Boatright, 1999Bowie, 1999;Harrison & Freeman, 1999;Hillman & Keim, 2001;Buysse & Verbeke, 2003;Roome, 2005;Doh & Guay, 2006;Sen, Bhattacharya, & Korschun, 2006;Barnett, 2007;Werther & Chandler, 2011;Moura-Leite et al, 2014). …”

“…An empirical study by Moura-Leite et al (2014) documents that nonparticipation in controversial business is already instrumental for a firm's market performance and tends to generate competitive advantage. This shows that stakeholderism could be a response to society's expectations.…”

Sustainability Principles and Hotel Enterprises Management: Analyzing Hotels in Campo Grande, Mato Grosso do Sul, Brazil

“…A sustentabilidade deixou de ser uma função exclusiva de proteção do meio ambiente, para tornar-se também uma função da administração. Essa atividade dentro da organização passou a ocupar o interesse dos gestores, e a exigir uma função na estrutura administrativa que pudesse abrigar corpo técnico específico e um sistema gerencial especializado (Moura-Leite, Padgett & Galan, 2011). A Sustentabilidade no Âmbito do Turismo e da Hotelaria -Para Gonçalves (2004), o setor do Turismo, em geral, e a hotelaria, em particular, têm a obrigação e a responsabilidade de fazer da ética ambiental parte integrante de suas metas organizacionais e gerenciais, já que o sucesso dos seus negócios depende em boa parte da 'saúde' do meio ambiente.…”

The effect of participation in controversial business on stakeholders management

“…Tel: +55 67 3345-3568 "bear some form of risk as a result of having invested some form of capital, human or financial, something of value, in a firm " (1994: 5). To define non-participation in controversial business, Moura-Leite et al (2011) concepttualization is used. Non-participation in controversial business is referred as social issue participation by Hillman and Keim (2001).…”