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STAKEHOLDER CAPITALISM IN A GLOBALIZED ECONOMY
1.0 Corporate Governance and Stakeholder Engagement
1.1 Evaluate board composition and stakeholder representation.
The identification of whether the board members are stakeholders of the corporation as well as looking at
their gender/race in relation to those represented within the company being involved in producing
stakeholder capitalism is key to quantify alignment to stakeholder capitalism. Agle et al. (2008) argue that
the stakeholder theory is an important addition to the work of corporate governance, insisting that there in
board decision-making processes, a consideration of contractly diverse interests must be given
Acknowledgement: Second, Agle, and Sundaram (2008) have taken in the management process.
Stakeholder theory in the twenty-first century: The stakeholder theory on the other hand maintains that the
business should not attempt to satisfy the shareholders only through maximizing their wealth but, among
other stakeholders, it should also consider the perspectives of the employees, customers, suppliers and the
community. The role of blogs is also emphasized by Bosse and Coughlan (2016) as gateways to a fresh
stakeholders relationship, and therefore should be considered by the boards since that is the main focus for
the success of their stakeholder management plans. Only If boards keep the stakeholders involved and
Meanwhile bring to light and account for the issues facing the stakeholders in the decision-making
processes, does it make the stakeholders' engagement. The authors, Adams and Ferreira (2009), asserts
that there is a positive relationship between the corporate governance and corporate performance with the
inclusion of gender diversity in the management of the firm. Diversity in the board members will be
reinforced for the discourse as they will bring diverse points of view, knowledge, and skills to the table,
hence thevery good choices will embarked and better discussion will be achieved for the greater level of
thinking. Information technology may be an avenue through which individuals with diverse backgrounds,
talents and perspectives may find and play their roles in the institution so that all the stakeholders with their
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ideas/opinions are involved in the governance process. Furthermore, it will be stipulated that both the
composition of the board and the stakeholder representation are vital as a matter of evaluation system of
whether the governance mechanisms of the corporate and the material stakeholders are congruent.
Management will not carry out stakeholder capitalism as a task of the second, but as a long-term process
of shared value creation. This means that boards that are more responsive to their stakeholders, give
diverse views more room for expression and practice an inclusive decision-making process most likely will
observe the principle of stakeholder capitalism which in turn will sustain shared value creation for a longer
time.
1.2 Analyze mechanisms for stakeholder voice participation.
Communication routes for the stakeholders to voiced is the second component of interested stakeholders.
Becchetti et al. highlight the importance of stakeholders and ESR and risk management approaches,
which are the accompanying articles (2020). Through the engagement of important people, firms are able
to collect all-important information linked to operational dangers and the overall stakeholders' lives as well
as the society at large by making it possible to achieve the company's goals without causing much harm.
Not only did the authors Aakhus and Bzdak (2012) update the idea of „shared value‟ that business and
society which could partner in big projects focusing on societal development, but as well. Through this
approach, the organizations not only generate the principles of mutual social value into their operations but
they go on to incorporate the interests of all stakeholders in the corporate social value consideration as a
way of providing a social good that is of benefit to both the community and the company. The embodiments
like stakeholder dialogue; a platform for advisory committee members and public consultations are
intermediaries to enable interests of stakeholders to be represented. They are meant to widen the audience
base as participants are given an opportunity to campaign their causes, present issues which affect them
with their perspectives, and bring their suggestions on solving common problems which can positively
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affect the organization as well. Through debates and public interaction with other stakeholders regarding
social responsibility activities that the company engages in, a company would be able to provide an
accountability platform for the stakeholders to keep it in check and to address any questions and queries
that the company might have. More to that the processes aim to present the organizations with ways of
attracting and retaining their stakeholders, thus enabling them to trace out the lurking issues, predict what
their stakeholders expect of them and to react swiftly to any complex changes undertaken by the society.
Moreover, since the engagement of stakeholders is not only good governance but also a source of
sustaining long term value, it is important that the organisation commits to it in an addition to the processes
of good governance. There is a need for companies to integrate the very stakeholder perspective into
strategic decision-making in order to discover new opportunities, eliminate or reduce threat and as well as
steer towards innovation. Friedman and Miles (2002) establish basically that those firms strongly engage
stakeholders do very well in the hard times and in the consequence, they are more flexible and they must
grow. Therefore, looking into how the public thinks of the company‟s stakeholders conveying their opinions
matters just as much as carrying out a study about the part that broad participation of stakeholders play in
corporate governance, management process and company in general.
1.3 Assess disclosure practices and reporting standards.
Disclosure application and reporting are two of the most important elements since both are vital for both
internal and external evaluation and accountability. Benlemlih and Bitar (2018) assert that the done through
search and investment efficiency are pretty much inseparable. They especially focus on accuracy of
reporting, and it is listed among the determinants of trust and confidence structure among stakeholders that
are investing. Companies publish what they do to earn and maintain trust: among others, the actions, the
reporting and evidence of reclaiming of the environment, the society, the organizations good management
and the contribution to the environment, themselves. When it comes to public and all stakeholders, they
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may comprise of banks, suppliers, employees, consumers, and community. Unlike various theories, CKPM
by Agle et al. (2008) focuses on better stakeholder theory whereby transparency methods by business
firms are some ways which are used by the firms to meet the interests of the stakeholders. The theory
points out that a company's main task is to ensure a balance between the two goals i. e. , maximizing
shareholders' value and also the realizatin that their activities may affect the interests of the other
stakeholders By means of lack of transparency and wrong information dissemination, it is impossible to
appreciate the extent of risk one undertakes with the investing in securities of such a company and raises
doubts about legitimacy of the behavior. Maturity and tamper-tight reporting enables every single corporate
organization to identify and review credible ESG factors like carbon emissions and labor practices, included
in that list. By so doing, the stakeholders are made well informed on the particular role they play in the
concern and therefore using logic and reasoning is quite helpful in determining whether or not to buy, invest
or offer advocacy. Rapidity and accessibility are the allies of engaged individuals who gather essential
information to realize that leaders are true and responsible members of corporate society by timely release.
As well as donating corporate reporting, this also enables the public to be aware and share their views as
well as have interaction with them and other people, which helps to grow common understanding and joint
efforts to tackle the ESG problem. Engaging stakeholders is a pathway which allows companies to gain
worthy data, boarder audience understanding, and any corporate relations improvement.
1.4 Understand shareholder activism and stakeholder collaborations.
The skill of comprehending the shareholder activism and the stakeholder collaborations is a good factor
that leads to actual impact on the organization and the components that are involved. As such, Bosse and
Coughlan‟s (2016) article addresses stakeholder relationship ties envisioning the scope that projects not
only engage stakeholder but also do so through collaborative approaches. Maintaining a close rapport with
stakeholders, then, helps firms, not only to learn from their expertise and experience, but to set in play
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corporate decision-making process, which, by its sheer nature, promotes sustainability. Collaborating
activities usually implies conversations, partnerships and joint decisions made on public participation that
enable companies to take a broader range of issues into account and care. Apart from Benlemlih and Bitar
(2018) examined in correlation between social responsibility and efficient investment. They also noticed
that activism and the role of shareholders is a good reason that has pushed many companies to be
responsible. Beyond shareholder activism, which enables owners/shareholders to challenge by using their
voting power to put in place policies and systems that fall in line with ESG principles. By participating in
measures like proxy submissions, voting on corporate schemes and engaging in dialogue with the board,
activist shareholders are able to deter incurring the rigidness into business operations through
transparency, accountability and sustainability. Also, the network of shareholders and stakeholders will
signify the result of shareholder activism, which shows the higher effects of governments or corporate
activities. The lack of communication with stakeholders can lead to the lack of development of common
interests, common goals and sountialization which are especially important for the relationships among
workers, customers, suppliers and the local communities. According to Cennamo and Santoro (2019)
research shareholder activisim and stakeholder cooperation can show up various synergy impacts as a
result, companies which go on to engage with both shareholders and stakeholders more efficiently choose
to obtain better environmental, social, and corporate governance (ESG) performance outcomes. Hence, the
study of shareholders activism as well as the collaboration among the stakeholders are the key aspect to
be considered here for analyzing the role of such undertaking and the integration of principles of
stakeholder capitalisms into the organizations.
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2.0 Environmental, Social and Governance (ESG) Integration
2.1 Examine environmental impact and sustainability initiatives.
A division of the issues concerned with the environment from the available green measures taken by the
enterprises allows to acquaint oneself with the greenest of all. As Crane, et al (2014) suggested, not only
long-term social or economic changes are fueled by the enterprises' projects, but also environmental
problems such as global warming. They say that companies can perform the role efficiently of
environmental problems disclosure as embracing sustainability into the achievement of their original
objective of business and operations. Alongside the Derry‟s (2012), who also examine the role of the local
governance and place-making, it is shown the stakeholder‟s engagement in environmental regulation and
the actions they can do. Hence he emphasizes that the role of partnership in environmental activities is
taken by the stakeholders, where the local population and government structures take part. The level of
today's corporate responsibility to sustainability issues is so high it has many prospects to be put among
the corporate values of the renowned companies to be associated with the existence of environmental
problems and their intention to solve the issues. Considering the effect and how sustainability is catered
for, it is going to be easier to determine the extent of environmental condition and ethical norms of the
companies that operating within the framework of ESG. To them, it is a chance for them to get to know how
companies have advanced in having a controlling impact of how they affect the environment or the
community by so far limiting themselves. Stakeholders put the same approach into practice by making
stakeholder-holding corporations responsible for the company‟s environmental practices and being an
advocate for the principles of transparency and accountability in the area sustainability acknowledgments.
In summary you have learnt that, environmental assessment and the adoption of sustainable strategies by
stakeholders for what they possibly could do is paramount, this will enable them and the corporate sector in
assessing how committed they are for environmental preservation and also take actions towards
sustainability.
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2.2 Assess human rights and labor practices.
Assessing and observing human rights issues and labor laws that are in compliance with the United
Nations‟ characteristic is ethical responsibility that ensures moral standards of workers and respect for
human diginity in the businesses. Donaldson and Preston, in their Stakeholder theory of the corporation,
argue that the corporation should be created and run in such a way to serve others and stakeholders in all
its aspects; not only employees. They are the ones who believe that the responsibility of the company is not
limited to its workers but it is also about the activities of the company and welfare of its employees.
Therefore, according to them, priority on its nationals should come first. Additionally, Freeman (1984)
maintains the extended perception of strategic management that is grounded on alcohol-related issues and
equitable employment of human labor. And in the end he claims that besides earning big profits the
companies should look after their employees, solve the customer‟s problem,non the less satisfy the
demands of the suppliers, and support the community where they belong. Conglomerates that have
positive CRC and labor relations and ethics will demonstrate to the world their ability to lead the way when
it comes to doing the right things and by becoming models, they will end up forming a bragging right in the
business world. The operations may also implement processes of fair payment and treatment of
employees. Therefore the precise definition of environmental, social and governance framework would be
incomplete without the appearance of human rights critical evaluations in which the social justice is the key.
Initially, the purpose of this information is to enable the stakeholders to objectively ascertain to a point the
level of compliance with the human rights standards and the promotion of a culture of respect and open-
mindedness within the companies. Individuals and groups who claim their rights against the companies by
requiring corporate responsibility in the field of human rights and labor issues, will in the final analysis, turn
a new leaf by cooperating and will have impact on the establishment of a better and fair world.
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2.3 Evaluate corporate ethics and anti-corruption measures.
Assessment of ethical and anti-bribery/anti-corruption policies is crucial for the sake of ensuring the highest
standards of integrity and accountability within corporate hierarchies as corporate governance. Stakeholder
capitalism as shown by Edmans incorporated ethical standards as determinants of both corporate
behaviours and task accomplishment. He believes that the interest of all shareholders and not just the
owners of the business should be taken into account. These comprise workers, clients, suppliers and the
wider environment where the corporation will conduct its business. This is how value is properly created
over time. As a part of this, Crane et al. (2014) argue against the worth of the "creating value for all" claim
because of the chance for greenwashing and unethical practices in the pursuit of corporation goals. They
urge against only going for the sake of the match of the business goals with community advantages without
a true dedication to the ethics principles and social roles. Those corporations, that pay a lot of attention to
corporate ethics and anti-corruption measures, are a kind of companies that prove what manner of role
they perform - that they are companies that observe the ethical standards and then they are the companies
that build and increase the trust between the stakeholders. In such cases, so ESG strategy is assessed by
assessing a company‟s Ethics and anti-corruption measures, so one must understand their integrity and
credibility. Stakeholders, save the fact that they can use the information to examine both ethical values and
actions as well as ethical behaviour and duty makes their investments and engagements more informed
and increased. Through stakeholders' ability to pressurize companies to be accountable in their ethically
conducts and transparency, virtue can be thought of as a way of driving corporate governance in a good
direction and a culture of integrity and responsibility.
2.4 Understand ESG integration in investment decisions.
The integrating of the ESG framework into the investment decision-making process is indeed the most
crucial long-term initiatives to ensure that the portfolios are in destination with the environmental, social and
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governance considerations. However, the setting up and observation of a progressive set of criteria and
principles is inevitable. To put it plainly, for Edmans, stakeholder capitalism is a very important factor for
investment choice evaluation because if investors integrate ESG factors, they can fully account for the
company‟s performance. Growing of companies is competitive issues, therefore, the companies which
excel dealing with ESG matters will perform better than the others to create enduring values not only to the
shareholders but also to the stakeholders. Nevertheless, reporting transparency is argued by Becchetti et
al. (2020) to be linked with corporate social responsibility. This may suggest that financial reporting could
lead to not only better consumer trust and self-confidence, but also in the long run could contribute to lack
of distrust among investors. They explain that investors are given ESG metrics for appraising those actions
that the companies are undertaking towards sustainability and forming the basis for consumers' choice of
where to invest their money. The investment is gradually gaining popularity with the investors as it now has
it clear that making ESG factors a part of decision-making process brings about a diversification of financial
performance and risk mitigation on part of the investors. Institution investors, who by their nature have the
potential to distribute the capital in the huge banks, may run the risks and can exit the opportunities and
finally the companies may work towards the desired society and end environment welfare by including ESG
block in their investment assets. This is the reason that people which are focused on social and
environmental issues should be able to study these activities when making their investment decisions as
they will not only suit their value system but also be beneficial to the environment. It is also a way of
channeling capital to firms that have already performed at a high level in the environmental, social, and
corporate governance fields so that a better tomorrow with respect and stronger future is guaranteed for
everyone.
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3.0 Supply Chain Transparency and Accountability
3.1 Analyze supplier codes of conduct policies.
Ethical guidelines on purchasing principles and documents adopt a needs orientation of the organization to
determine the ethics and policies which the suppliers should comply with. Freeman et al. , (2004) assert
that ,in there,” revision of the stakeholders theory and ,in the , "corporate objectives revisited", they
elaborated the views of people involved either directly or indirectly among the the stakeholders of the most
affected groups. In the same way, analysts certain that the companies should examine their suppliers and
determine them as stakeholders and not be the only that are delivering ethical behavior or just offering fair
conditions goods. In terms of that their messages should be fair and true as well. Friedman and Miles
(2006) underscored the importance of sharing theory and ideals of key stakeholders and corporate
objectives in order that the stakeholders, in turn, can comprehend what suppliers need to be successful
and contributing to the value creation activities of the corporation. They depict the inevitable interlinkage of
similar industrial enterprises and their livelihood addressee, and they show that success is achieved by
jointly performed task that is based on trustability and honesty. The organizations that are enforcing these
policies need to do an assessment whether the companies that are part of the supply chain and are also
involved in procurement and accountability have the same things. They principally minimize the component
of supervising whether suppliers are mandated to follow the rule of fair labor in their operations and also
advance environmentally friendly tatics and human rights protection. Instead, it may turn out to be an
instrument that community organizers may apply to make the names of individuals in the supply chain
responsible in case they betray supply chain confidential information. Furthermore, a more profound study
identifying and measured the degree of their commitments to the standards of ethics and the state of
leadership in the supply chain as well as, the actions done by the responsible stakeholders can be done.
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3.2 Assess human rights due diligence processes.
Human rights due diligence, in summary, is therefore, determinant. Companies must play the role through
adhering to human rights moral ground within their supply chains no matter how high or low they go.
Frooman (1999) opines the stakeholder involvement systems are essential as they use to deliberate on
some substantial society interests and ethics. He insists of the appalling duty of business to assume the
stance of employees, community members, human right groups before reaching out to the policy and
practice. Furthermore, the authors (Garcia-Castro and Francoeur, 2016) place special focus on the
complexities (complementarities, costs and contingencies) of the stakeholder management, presenting the
key importance of proper due diligence procedures that are used to identify and solve the human rights
challenges. It is the supporters of proper stakeholder management who believe that counteractive
measures to be having a look-out and troubleshoot the rights violations in the making is better than
confronting and dealing with the emerging issues as they take form. Business enterprises' human rights
due diligence means investigating the risks of possible human right abuses from the company's operations
and implementing measures to avert and reduce the occurrences of such negative effects. Thus with this
evaluation process, the stakeholders would be able to determine whether or not the corporate's human
rights due diligence processes have been effective and appropriate to the supply chain of the business.
They could check the presence of compliance rules & regulations like whether the organization creates
committees and other bodies, actually implicate the affected groups, and adapt rules to avoid side effects
or not. Moreover, they have the ability to take the right measures and punish for non-compliance. Thus, the
divergence lies with the fact that by doing this, stakeholders can use it as a tool to make corporations
responsible for the human rights promises that they promised and also propose to have a changed
procedures of due diligence. Therefore, the priority of prospecting in the course of conducting a human
rights due diligence process is a decisive moment when the operation of corporate accountability and
respect for human rights within the global supply chain is concerned.
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3.3 Evaluate traceability and responsible sourcing practices.
The laboratories which adopt these practices achieve traceability and responsibilities among the articles
that they obtain. The paper written by Gariga (2014) concentrates on the "role or contribution" of
stakeholders in the value creation mechanism. She highlights that this is obtained only when proper
capacities are formed towards that direction. In addition to showing sustained interest in stakeholder
participation programs, businesses should be equipped with a combined set of tools and competences to
respond appropriately to stakeholder demands even when they change with time. Traceability refers to the
process of following all chain of the supply to determine mainly the main origin and manufacture conditions.
It is in this concept that they will be able to follow the journey from where the product originated to the end
consumer through the supply process and keep updated on everything related the supply chain. While
buying goods and materials from fair and responsible organizations it an issue of buying from the
merchants that follow the laws and who comply with the ethic and environmental norms. It might be putting
a focus on, for instance, company compliance with decent working standards, environment protection, and
(human) rights recognition throughout all the stages of production chain. The main stakeholders can now
audit if these productions have made them Transparent in their supply chains and if proper sourcing is kept
ahead of the business mindset. In contrast, they can also ensure that this rule is effected, for instance, by
checking how companies have put strong rules and procedures in place along the supply chain so as to
avoid trade with unapproved supply streams. However, it could bring a solution whereby through this
information people can only engage with a particular company when fully informed on where the products
they buy come from. They will then be able to sustain the companies by supporting the transparency that
is needed in the supply chain. Assessments of traceability, ethical sourcing of raw materials and the
dilemma of environmental priorities are among the criteria required to run an adequately ecological supply
chain.
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3.4 Understand third-party auditing and certification mechanisms.
Thus, the fact that third party verification and certification are carried out aims at customers knowing that
the ethics and sustainability requirements are being adhered to during the whole supply chain. From
Freeman and colleagues who were responsible for the further development and the stakeholder theory "the
corporate goal and the care of its stakeholders," we can see that stakeholders are indeed a vital component
of the corporate decision strategy. Such solutions prove to their companies that their (companies‟) diverse
problems and the blurring boundaries of businesses that are metamorphosing are very helpful. This is true
not only for small businesses and medical practice which focus on ordinary citizens, but also for large
corporations and institutions. They also take care of their suppliers and workers by hiring them and
enjoying their services at reasonable prices. The external audit is a methodology that involves auditing
conducted either by management or auditors on a periodic and independent basis, whereas, the
certification process is about having a formal document to either prove or acknowledge adherence to the
formal criteria or standards. Hence investors the confidence when the identify and understand independent
audits among the certification processes which will lead to the genuine trust. As a result this will mean the
perception of the supply chain as honest and accountable from the corporations. The independent are able
to inspect the audit's body certification or accreditation by the bodies that satisfies the qualifications criteria
in order to advise and tell the investors that a given company is worth to invest in an ethical behavior and
sustainability. On the contrary, the authorities may claim that the companies using global supply services
should evaluate their behaviour and not to be disregarded by the society. The survey based third party
audits and certifications become therefore a necessary step towards and the maintenance of integrity,
openness, and responsibility in supply chains.
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4.0 Stakeholder Engagement and Community Relations
4.1 Examine stakeholder mapping and prioritization strategies.
4.2 Assess community development and impact investments.
Even though the corporate social responsibility and impact investment; which are the responsibilities of the
corporation may add a value to the community that is embraced by the said corporation, the community
development should be element that does not hinder the goodwill of the stakeholders. Harrison and Wicks
(2013) have different guidelines for identifying stakeholders and managing them to create stakeholder
positive outcomes that will improve performance exponentially. They affirm that this should not be
interpreted as the shareholders‟ individual interests need to be compromised during such a discussion.
They further explain that people should know that their business will also be recognized by people who are
not staff, suppliers, consumer, and local people. The business only pursues creating sustainable value
creation when it demonstrates through these people that it has a good community understanding and
organizational skills. In this line, he will examine how also financial gains help to materialize when his
stakeholder engagement is implemented, and in return, the many benefits of social development that one
can reap in the long run. This idea is that competitive businesses in cooperation with the community and
having their own project will be more successful and sustainable having their community as the main value.
Also it is very important for business to prevent the possible social and environmental problems. By
financing projects or activities that operate with a purpose beyond generating finances on a short term as
well as having a positive impact on either the environmental issue or social sector stands the impact
investments. Corporate proactivity in funding or doing community development presents a solution to some
social issues, also builds/strengthens community bonds, and as a result oil the popularity and perception of
the brand as being responsible and owning the social and moral responsibility. Here they will be employed
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as a strategy of generating sales, eco conservation and community engagement which will ensure the
growth and development the shareholder and consumers. In this way, accordingly, more than that,
enhanced sustainability will provide the population with shared benefits ensuring the welfare of the
individuals and businesses. In this strategy community development along with social entrepreneurship is
looked into as a focal factor of development being the critical factor which should be considered in the
implementation of such an approach that finally yields the desired change of social norms and attains
sustainable development.
4.3 Evaluate grievance mechanisms and conflict resolution.
To enable conglomerations to recognize the pivotal players and the importance of their issues,
perspectives, and influence, the tools of stakeholding mapping and prioritization have to be placed on the
top of their agenda. Goodpaster (1991) discusses the matter of business ethics inpar with the stakeholder
analysis, considering the necessity not only to care about the different interest of stakeholders and that how
the process of decision making should be done at the corporate level. He says that the entities should
accept to understand that all their actions affect the stakeholders in different mechanisms and therefore see
that they would survive by being accommodative and through sustainability in this context. In Hahn (2015)
too, qualitative type of stakeholder analysis in the field of corporate sustainability research is introduced
here. Hahn draws the attention to the necessity of involvement of all the key major stakeholders when
forming the long term sustainability goals corporation. And helps incorporate them in the decision making
process to make the sustainable standards of the corporation better. Stakeholder Mapping includes
scrutinizing stakeholders of mega-Blue owned Genetic Engineering Corporation, in which many factors
range from their authority, relationship to interests to vary their degree of involvement. The allowance of
firms to set different directions a lot more creatively is the significance of this process. It helps them make
their ideas and strategies very specific and drive home their intended message to the groups that are at the
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receiving end of the messages or the public. Among different importance of the activities such as
prioritization undertaken by the companies, it assists them to guide and work on what is critical to them and
be in the interest of those with more weightage in the business success and sustainability. Moreover, they
can follow different mapping and prioritization approaches as well as engage in overall stakeholder
engagement. They are going to be mainly responsible for pinpointing influential people, having them get
along, and prior to the future, develop solutions for them ahead of time so as this can consequently
increase the supporters and success of our firm in the future.
4.4 Understand public-private partnerships and multi-stakeholder initiatives.
Stakeholders‟ issues and the issues of the conflict cannot be resolved fairly unless the processes of conflict
resolution and complaints evaluation are diligently examined. Goodpaster succinctly listed down in the
1991 publication of business ethics and stakeholder analysis, making a case for the organizations to
integrate the company into a platform where stakeholders put forward their issues and claims. He mainly
brings it to the attention of the business owners that the corporation shall be current and that every
stakeholder who has an issue can be heard and his/ her issues can come to a logical end by being
something that will be thought of in the corporate decision support system. On the other hand, as stated by
Hart and Zingales in 2017, maximizing value for investors should remain as the main aim of firms, yet
managing the relationships with the interested parties should be considered as something relevant to
smoothen business and hence to create value. They allege that such companies can meet their public
obligations through established grievance and conflict resolution mechanisms , and in the efforts, they can
always get rid of any reputational damage or they can put off what could have been court litigation since
the ineffectiveness of such mechanisms can bring more problems . Through a complaint mechanism,
whereby stakeholders could issue their complaints about the company activities, this exercise might lead to
better outcomes to the complainant and provide a platform for effective resolution of complaints. That the
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peace mechanisms leading to the resolution of dispute in the region, offers parties a platform to
communicate and negotiate in a way that the problem is amicably solved and supports constructive
engagement and mutual understanding among the parties. Playing a certain role in something like
witnessing the grievance mechanisms and conflict resolution procedures of an entity, companies can show
curiosity, honesty and desire for fairness to the community. The involvement may direct to the identification
of where the last steps should be done or introduction of new dispute resolution tools, consequently, and
improvement of their process of claims settlement. Stakeholders will be then closer to this company and
trust it.
5.0 Measuring and Reporting Stakeholder Value
5.1 Analyze frameworks for stakeholder value quantification.
The initial step of stakeholder value evaluation is crucial for companies which tend to observe all
segments: groups/individuals directly or indirectly involved in company‟s activities and track various effects
to stakeholder‟s prosperity. Hillman and Keim (2001) illustrate, however, the main stakeholders,
shareholder value and stakeholder management as the principal pillars of a long term value creation. they
argue that to reach the greatest success the Corporations must wholly broaden their view and consider not
simply the shareholder benefit however other issues like employees, customers, suppliers and the society.
Besides stockholders' maximization, distribution of interests and the corporate objective function, the issue
of how to balance the interest of stakeholders and stockholders cannot be easily resolved by the Jensen
(2002). He bases his principle on this idea and then advocates that a company's corporate culture should
include not single-mindedly profit but a possibility of financially beneficial decisions for all stakeholders, not
with the last word. The dissemination procedures of the instant stakeholder value evaluation techniques
through the accounting methods incorporated here for the identification of stakeholders, determination of
the most important matters and the assessment of the consequences after the corporate actions. This set
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of rules essential has different indicators, some interpretational instruments, and other similar instruments
which are important for the stakeholder impact assessment of corporate activities, as a whole. The
advantage of them possessing this knowledge lies in their ability to make the right things from among many
and recognize the transcendence of stakeholders as a whole. On the other hand, the prosperity of all
participants is given full attention while running a business enterprise which in turn will directly profit the
entire community as well. In general, one of the most crucial functions of business is to define the
relationship between corporations and the stakeholders accurately, exactly in terms of transparency,
trustworthiness, and accountability because all these result in a long-term value creation process.
5.2 Assess integrated reporting and value creation.
Discussant should be duly paid attention to as it serves the purpose of integrated reporting that should be
jointly co-interpreted by the firms that are sought to be known by its active process and wise use of their
value creation to the suppliers. Husted and Allen (2011) in the first place do emphasize on corporate social
strategy, stakeholder engagement and competitive advantage, where they argue, the base of the reporting
system which ensures stakeholder trust and accountability, is the foundation. The keepers of the integrated
reporting claim that wholly the records present performance by the companies from financial,
environmental, social and governance views. Furthermore, Jones‟ and Wicks‟ (1999) convergence theory
of stakeholder model is aimed at showing the logic of the connection between the long-term organizational
strategy and stakeholders‟ interests and leading eventually to the success of the firm. They support the
integration of the issues of shareholders, customers and employees in the very basis of the corporate
activities, as it will not only make the companies more successful in the market and popular among people
but also will prevent the further loss of these key actors of the business and therefore will help the
companies to stay afloat for further years. Integrated reporting is far more than just combining the financial
and the environmental, social and governance – ESG – aspects into a comprehensive framework. The
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stakeholders will find it revealing because it provides them with a better representation of the organization's
performance. There would be twofold objectives in the rigorous implementation of reporting tools and
accounts about integrated report and value creating process. On the one hand, it can be used to showcase
the commitment of the corporations to sustainable and value oriented businesses. On the other hand, it
would increase accountability and transparency of the corporate operations in a way of reporting.
Integrated reporting, therefore, organizations have the right to articulate their strategic management
priorities in terms of their relations with various to parties as well as what the company is doing as a socially
and environmentally responsible organization.
5.3 Evaluate impact measurement and performance indicators.
For this purpose, instead of the assessment of outcomes and performance indicators which evaluates the
achievement or failure of the sustainability objectives become a critical and key issue as it is related to the
unsufficiency and incompleteness of the evaluation process and results of the companies‟ value creation
and sustainability goals‟ maintenance. In her article, “The environment performance-stakeholder pressure
relationship: the political context and the role of firm characteristics in environmental performance,”
Kassinis and Vafeas (2006) widen their probe to testify the fine distinction between the environment
performance - stakeholder pressure relationship. In the report, they accordingly consider the critical nature
of thorough environmental impact assessment and management procedures as a process of „blending‟ the
company‟s production demand with the „customers‟ expectations. Furthermore, Mellahi and his associates
(2016) employ a technique, which is highly valuable in non-market strategies area, showing that integration
of various points of view (being another aspect of organization) must always be taken into account for
giving a full understanding of corporate social responsibility. It follows this multifaceted approach which also
seems to add more dimensions to the whole picture. Therefore, the intensity of the actions‟ realism
transcends purely economic objectives to more holistic views. The defining characteristics of the social
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impact measurement metrics is within the scope of measuring outcomes (economical, social and
environmental) that has been caused as a result of corporate activities. This evaluation strategy designates
particular criteria which are customarily used by the organization to compare this progress with the
accomplishments laid out in the respective frameworks and focus on the areas that require greater
attention. The stated performance measures which, in this case, are the ones that ought to be given most
importance have the most impact on you; they are the measuring stick that enables you to see how you are
doing and the levels of he efficiency of the sustainable activities that you have done. Facing the task of
evaluation of effect as an issue of performance management for the sake of persuading both the
stakeholders and the corporations to commit to continuous process of improvement, a method might be
represented with metrics, which can find the spots for enhancement. While increasing the transparency and
credibility of their sustainability is indeed among the most important roles of the Ethical committees, they
must also make sure that their performance in regard to sustainability is communicated less effectively to
the public and the goals they strive to achieve are shown as well. In this way, the importance of their
sustainable commitment is perceived by the stakeholders and this leads to the development of such trust
and confidence.
5.4 Understand external assurance and verification processes
The integrity of information distribution platforms will be maintained in the event of a stakeholder value
creation with the use of internal co-confirmation tools. In their study of 2009, the scholars are uncertain
about the ranks of failure of the factual stakeholder influence strategies which are related to public relation
procedure framework as the main step that leads to the trust and credibility in the publicity and
communications of the company. Thus, the obtained results are the ground which provides the basis for the
fact that the partners must be open and the relationship which they are supposed to develop will last and
be sustained into the future. Usually, the cases are that civilizations get prone to each other when they
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stand up on the common perception of understanding and acceptation. Besides that, Laplume et al. (2008)
point out to what extent the common-stakeholder theory helps business strategy task that is regarded as
paramount for the given company to engage in meaningful and open dialogue with stakeholders. They
persuade the application of techniques that emphasize inclusiveness of stakeholders, responsiveness and
ethics as a https:In the end, the ethical considerations will be in the fore because of the complications
government entities, business entities, or people face in decision-making associated with technology and
their repercussions. Therefore, external review becomes an intermediary between the data verification and
fact check process with the intend to ensure that the information reported is only accurate, consistent and
up to the particularities. More so, confirmations of the validity of business would therefore be a fact to be
confirmed, including the integrity of data offered in relation to value achieved throughout the process.
Businesses can reinforce their bonds with the stakeholders and so even the critical chances of the
reputation risks and market obstacles by incorporating a wholesome, impartial and confirmatory process of
third-party review. The most important thing is that nowadays the media are written and read by people
who expect them to fulfil the promises of ethical journalism, objectivity and governmental responsibility in
their coverage. It entails holding onto to their reputation of truth and honesty. This can be done by
establishing internal audits and ethics awareness programs within organizations because these can
enhance the relationship between the organizations and public over a period of time and create ethical
dilemmas.
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