An integrative framework for stakeholder engagement: reconciling and integrating stakeholders’ conflicting CSR priorities in management decision-making

Abstract

ABSTRACT CSR implementation is inextricably linked with effective stakeholder engagement, and integrating stakeholders’ CSR priorities in management decision-making a prerequisite for effective stakeholder engagement. While the literature points to the need to build such linkages, no mechanism exists that reconciles never mind integrates stakeholders’ (often conflicting) views. Addressing these omissions, we propose that there is a need for a framework that (1) reconciles and integrates the often conflicting priorities of stakeholders; (2) helps to construct a ‘unified’ CSR index inclusive of all stakeholders’ views; (3) fosters consensus-driven management decision-making; and thereby (4) facilitates effective CSR stakeholder engagement and implementation. We construct an ‘AHP-based Integrative Framework for Stakeholder Engagement’. We construct a ‘unified’ combined CSR index for Saudi businesses as well as the wider Saudi society as external stakeholders based on 18 CSR indicators identified as relevant through primary data collection. Based on combined rankings for the 18 CSR indicators, the most desirable ‘common’ CSR attributes are determined for all stakeholders. Notably, the popular notion that the Saudis view CSR in terms of philanthropy as a means of fulfiling their charitable obligations is not supported. The ‘AHP-based Integrative Framework for Stakeholder Engagement’ delivers measurable and transparent consensus-driven objective decision-making in setting CSR priorities inclusive of all (internal and external) stakeholders’ views enabling participatory stakeholder engagement and CSR implementation, as well as objective CSR evaluations and comparisons improving the performance-disclosure gap. While this research focuses on CSR, we demonstrate the ‘AHP-based Integrative Framework for Stakeholder Engagement’ serves as a general framework that delivers effective stakeholder engagement in any management decision-making reconciling and integrating various stakeholders’ often conflicting priorities into common objectives thereby enabling organisations the best possible informed management decisions inclusive of all (internal and external) stakeholders views.