Businesses and their community in times of COVID-19: a stakeholder theory approach

PurposeThe purpose of this study is to contribute to the understanding of how micro and small firm owners/managers cope with an extreme event, as this has implications on how firms make decisions. The study considers self-efficacy and stakeholder theory as tools to gain more in-depth knowledge.Design/methodology/approachThe perspectives of owners/managers of 308 micro and small firms operating in the food, wine and hospitality industries in Italy, one of the most affected nations, were drawn through an online questionnaire.FindingsThe importance of determination, passion, family support and a sense of responsibility towards internal and external stakeholders emerged as fundamental factors helping firms confront the crisis. Five theoretical dimensions that help explain how firm owners/managers make decisions to safeguard their firms during the COVID-19 crisis are identified. Three of these, “motivational”, “stepping up” and “firm-based”, are directly associated with tenets of self-efficacy theory, and two, “human-moral” and “entity-based”, with stakeholder theory. Further complementing this second contribution, a theoretical framework underlining conceptual and practical implications is proposed.Originality/valueThe study delves into the challenges and survival of a key group of firms facing an extreme crisis. The identified dimensions provide useful conceptual depth and practical insights that, together, form part of a proposed framework. For instance, the “human-moral” dimension reflects upon aspects that have wider implications, notably, for firms' employees and the wider society.

This study aims to analyse the determinants of sustainability reporting in public companies in Indonesia using the Stakeholder Theory and Legitimacy Theory approaches. Sustainability reporting is an important indicator in measuring corporate social and environmental responsibility, as well as a means of building legitimacy in the eyes of the public. This study uses a quantitative approach with secondary data taken from annual reports and sustainability reports of companies listed on the Indonesia Stock Exchange (IDX) during the period 2020-2023. The independent variables analysed include institutional ownership, company size, profitability, and independent board of directors. The analysis method used is logistic regression to test the influence of these variables on sustainability reporting disclosure. The results show that company size and institutional ownership have a significant influence on the existence of sustainability reports, supporting the assumption of stakeholder theory that large companies are more exposed to external pressures. Meanwhile, the influence of legitimacy is reflected through the role of an independent board that strengthens the company's transparency and accountability to the public. These findings provide theoretical and practical contributions in strengthening sustainability reporting practices in Indonesia as well as providing input for regulators and stakeholders in formulating sustainability reporting.

This article discusses plant‐closing decisions by multinational enterprises (MNEs) applying a stakeholder theory approach. In particular, we focus on the emergence of “intra‐stakeholder alliances,” that is, alliances among the various stakeholder groups of a specific corporation. We analyze the emergence of stakeholder alliances in reaction to MNEs' decisions to terminate production locally and discuss their influence on the outcomes of such decisions. Our research is inspired by two exceptional case studies of two multinational breweries that announced their decisions to close niche breweries in small towns in Italy and Belgium. In both cases, the initial decision was ultimately reversed through the actions of intra‐stakeholder alliances. We combine insights from stakeholder theory and the social movement literature to analyze the action and influence of intra‐stakeholder alliances in seven cases of plant‐closing decisions. We conclude by formulating four general propositions that can provide guidance to MNE management in plant‐closing decisions. Our findings extend managerial stakeholder theory, show how this approach can improve strategic management analysis, emphasize the importance of the relationships among (local) stakeholders in the (global) value‐creation process, and shed light on the collective action and influence of intra‐stakeholder alliances.

Purpose The purpose of this study is to examine the significance of knowledge management as a tool for firms to adapt to an ongoing unprecedented crisis. Moreover, in considering the knowledge-based view of the firm, the study will ascertain the impacts, lessons learnt and how firms envisage their future under the current unpredictable regime from the viewpoints of firm owners/managers. Design/methodology/approach A qualitative data collection approach was selected, with face-to-face and online interviews undertaken with owners/managers of 33 firms operating in Singapore. Findings The data analysis reveals as many as eight dimensions pertaining to impacts, lessons learnt and the envisioned future of the firms. The relevance of knowledge management emerged, for instance, in supporting firms and staff to overcome initial challenges after the crisis became apparent. Knowledge management was also an exemplar of lessons learnt, through new knowledge development, strengthening links with consumers, through operational skilfulness and awareness, as well as in explaining how firms envision their future. These findings also underscore key tenets of the knowledge-based view of the firm. Originality/value Conceptually, the proposed dimensions stemming from the three examined research questions, together with the propositions and theoretical framework, contribute to a deeper understanding of the links between knowledge management and how firms confront a severe crisis. Empirically, the findings’ highlighted associations with knowledge management elements to illuminate how firms address the impacts of the COVID-19 crisis, as well as the lessons learnt and the envisioned future of firms operating under severe crisis conditions.

Social accountability is a key foundation for the legitimacy and sustainability of non-profit organizations. However, participatory and impact-based social reporting practices have not been fully adopted systematically. This study aims to analyze the influence of a stakeholder approach on the quality of social impact-based reporting in non-profit organizations. Using a quantitative approach and the Partial Least Squares–Structural Equation Modeling (PLS-SEM) method, this study involved 127 respondents from various non-profit organizations in Indonesia that actively publish social reports. The analysis results show that a stakeholder approach that includes participation, dialogue, information disclosure, and responsiveness has a significant influence on the quality of social reporting (β = 0.681; p < 0.001; R² = 46.4%). This finding supports stakeholder theory and strengthens the argument that effective social reporting depends on the active involvement of stakeholders throughout the program management process. Practically, this study suggests the need to strengthen the capacity of participatory impact-based reporting and adopt stakeholder engagement mechanisms as part of organizational governance. Thus, social reporting is not only a technical instrument, but also a strategic means to build legitimacy, transparency, and sustainable relationships with the community.

We use an event study to capture the investor reaction to the first Newsweek Green Rankings in September 2009, a notable, multi-dimensional recent development in the rating of corporate environmental CSR performance. Drawing on stakeholder theory, we develop hypotheses about (a) market investor reaction to the disclosure of new, relevant corporate environmental performance in both the short and longer (6–12-month) term, (b) whether market investors’ reaction reflects industry context, and (c) whether firm-level contextual variables representing firm size, and market legitimacy significantly impacts the investor reaction. We find that, for the sample of the largest 500 US firms ranked by Newsweek, investors react positively both to the raw and within-industry rankings of green performance in terms of both short-term and longer-term (up to 12 months) returns. Moreover, the investor reaction is significantly influenced by contextual variables such as firm size and firm market legitimacy. Our results are compatible with the inference that rating agencies like Newsweek serve a valuable information dissemination function such that investors in better ranked firms anticipate larger future cash flows due to more positive reactions from key stakeholders such as environmentally-conscious customers, employees, NGOs, regulators, and thus reward these firms with stock price increases. Finally, larger, more visible firms benefit more, while firms which have more market legitimacy (represented by past financial performance) benefit less. We believe these findings will be of considerable interest to scholars of environmental corporate social responsibility.

This study aimed to develop an alternative measurement model based on the stakeholder theory that answers the critiques toward the Balance Score Card (BSC). It synthesized variables from previous studies, including Job Satisfaction (JSA), Business Process (BPR), Customer Satisfaction (CSA), and Financial Performance (FPE). Moreover, the study set nine hypotheses representing the relationship between JSA, BPR, CSA, and FPE. The hypotheses were accepted after the Structural Equation Modelling (SEM) analysis of the financial data of the four biggest Indonesian Islamic banks and responses from 200 respondents. This finding confirmed the robustness of the model proposed in this study. The model denotes that the FPE results from the excellent implementation of JSA, BPR, CSA, and the interaction between these variables, which directly impact financial performance.

A great pressure has arisen lately in the business world by movements like occupy Wall Street, or more concerning economic crises started in 2008. Due to this pressure, companies have to be more careful and act more responsibly. In the recent years, Corporate Social Responsibility (CSR) has been seen like a panacea of all stakeholders problems, more and more reports of CSR being published on companies website. However, it has been proven that just to claim actions of social responsibility, does not mean those companies are truly responsible. As expected, this behavior is penalized by a part of stakeholders. In this context, for each firm is important to know which are the most representative stakeholders, and how a certain situation could affect this scale. For explaining this fact, this paper analyzes the case of Brent Spar, pointing how an industrial giant like Shell, using a wrong CSR policy, could lose both money and image capital. In order to do that, in the first part is discussed the CSR from the perspective of stakeholder theory. Although it is present since 1950s in the United States of America and evolved all over the world like an all known concept, CSR does not have yet an universally accepted definition. Therefore, in this article was stated a definition for CSR from the stakeholder theory approach, in order to understand the Brent Spar actions and implications. In the second part of the paper are analyzed the steps taken by both sides, on one hand by Shell and on the other, by some of the stakeholders. The actions have been explained from the CSR paradigm perspective. Finally, it is proved why Brent Spar is a case of CSR failed, and how, by neglecting of some stakeholders categories, a company could pay important costs. Moreover, the paper demonstrates that the image of one company, from a specific area, could affect the all industry field. Therefore, a proper identification of key stakeholders, a good communication with those and flexibility in decision, could be the success factors for companies, and may lead to successful CSR. Correct CSR actions become an imperative in nowadays industrial scenario, being viewed as a change imposed by globalization and by the transnational nature of CSR.

This paper focuses on sustainable initiatives in the maritime industry, specifically energy transition in EU ports. Our research aims to apply the stakeholder theory in port contexts, to examine the influence of different actors on the adoption of carbon–neutral energy generation technologies, from a port-employee perspective. To that aim, the proposed conceptual model is empirically tested through a survey among port employees, following the identification of applicable technologies via a literature review. Specifically, six types of energy generation technologies that advance the goal of carbon neutrality are identified, and likewise, following the stakeholder theory approach, we identified six categories of relevant stakeholders, perceived as external or internal. By means of a multiple regression analysis, we assess the influence of stakeholders identified regarding the carbon–neutral generation technologies. The results corroborate the suitability of the stakeholder approach for assessing port environments. The findings suggest the existence of different perceptions among port employees regarding the various technologies, while stakeholder influence can be either positive or negative depending on the type of technology. Among the stakeholders involved, customers and competitors appear as most influential. The main contribution of our results derive of tackling the differences in perception of carbon neutrality within the European Ports, and the carbon–neutral technologies in ports contributing towards carbon neutrality. By providing a more thorough understanding regarding the influence of diverse stakeholders in promoting carbon neutral energy generation technologies, this study can serve as a guideline for future research and be of value for practitioners in the field.

Integrated reporting (IR) is a new corporate‐reporting system that aims to represent the firm's value creation in the short, medium, and long term. In contrast to other disclosure systems focusing on non‐financial dimensions, including social and environmental aspects, IR is characterized by information connectivity. In recent years, integrated reporting has received increasing interest, both academic and professional. However, report quality is still a critical aspect of IR. Although several studies investigate IR, few focus on quality and its determinants. This study aims to fill this gap by investigating the impact of national culture, an external determinant, from a stakeholder theory perspective. The results show that IR quality is related to five dimensions of Hofstede—power distance, individualism, masculinity, and indulgence negatively and uncertainty avoidance positively. This study contributes to the relevant literature by analysing an additional factor that influences the quality of corporate reports, namely, national culture. This is the first study that investigates national culture as a determinant of integrated‐reporting quality.

This article seeks to review the research that was carried out in the framework of the SuPorts project regarding the application of stakeholder theory on environmental management for three Greek ports. Specifically, the article seeks to explore the need for stakeholder engagement at ports and presents interview data from the ports of Volos, Kavala and Lagos. The interviews aimed at presenting: 1) the ports' level of engagement with their stakeholders regarding environmental issues; 2) what the main barriers for better environmental performance were; 3) how ports perceived stakeholder influence. The latter was assessed through graphs that present stakeholder influence on a series of environmental issues that the ports face. Finally, the article proposes a stakeholder engagement plan for the ports and presents an overview of a roundtable meeting with stakeholders that was held at the Port of Lagos.

This study focuses on stakeholder assessments of mosque management. The researchers identified and investigated stakeholders' perceptions of mosque management using a descriptive qualitative case study of a historical mosque in the Sleman Regency. The concepts of stakeholder theory and accountability were used as part of the analytical framework. The results show that stakeholders view the religious programs and activities of the mosque positively, feeling that they benefit both the mosque and the surrounding community. Stakeholders also feel that the programs reflect the mosque’s commitment to building trust and stakeholder confidence. In terms of accountability, the mosque emphasizes moral, ethical, and spiritual accountability towards God and relationships with God and humans. Financial reporting is transparent, with reports posted publicly each month. Stakeholders believe that the chief administrator carries out his/her responsibilities honestly, openly, and responsibly. Overall, the research demonstrates the importance of considering stakeholder interests and aspirations to improve mosque management performance related to quality of services, transparency, accountability, and contributing to community development.

PurposeUsing stakeholder theory the paper seeks to investigate how technology incubators manage and balance the expectations of stakeholders, and the effect on the shaping of technology incubators and their chances of success.Design/methodology/approachIncubator programmes have been introduced with multiple goals. A case study is conducted in order to examine stakeholders based on their power to influence, the legitimacy of the relationship and the urgency of claim, and how incubators deal with stakeholder expectations.FindingsIncubator management involves balancing a complex set of conflicting goals. Expectations are interdependent, hierarchically organised, and involve sub‐processes related to different stakeholders. Goals are not fitted to an operational context. Consequently, suboptimal solutions are chosen to balance and fulfil expectations sufficiently to ensure survival. Three strategies to balance stakeholder expectations are identified.Research limitations/implicationsThe stakeholder theory approach adopted shows how incubators manage the expectations of their various stakeholders, and so may explain why studies on incubator performance produce diverse results.Practical implicationsThe effectiveness of incubators is difficult to assess due to multiple, and often moving, targets. There is a great risk that incubators aim for the goals that are easiest to measure and focus on short‐term results. Social returns of incubators can be reduced if incubator managers choose suboptimal solutions to balance the demands of different stakeholders.Originality/valueRather than accepting normative assumptions, the paper contributes to the critical analysis of the technology incubator ideal. Through stakeholder analysis the paper demonstrates how incubators are shaped by the struggle to balance conflicting goals.

Introduction/Main Objectives: To examines the effect profitablity on short term market return and agency cost moderates the effect financial performance on short term market return at mining sectors, Indonesia. Background Problems: Does agency costs moderate the profitablity on short term Return. Novelty: In the Cost Agency aspect, one of the important keys to CG and the entry point for disclosing company information to external parties is with a stakeholder theory approach. Research Methods: Data was collected from published financial statements from mining sector listed on ISX over the period 2016–2020. Finnacial performance is measured using both accounting data. Agency cost is measured asset turnover ratio. Testing for eviews apliction and method purposive sampling is used for data analysis. Finding/Results: Theory in explaining the effect profitablity on short term market return . Agency cost has a considerable impact solvablity on firm performance, that is, agency cost moderates the the effect financial performance on short term market return. Conclusion: These results are key evidence from an emerging country, Indonesia to support the stakeholders theory arguments. The results provide significant insights for managers at mining sectors.

Objective To understand the family management and resilience in nephrotic syndrome children to explore the influence of family management on resilience so as to provide a reference for family management and environmental support for chronic disease children. Methods From April 2017 to April 2018, we selected 130 nephrotic syndrome children and main caregivers at a Class Ⅲ Grade A comprehensive children's hospital as subjects by convenience sampling. The investigation was carried out with the general information questionnaire, Chronic Illness Children's Resilience Scale (CICRS) and Family Management measure (FaMM) . A total of 130 questionnaires were sent out and 127 valid questionnaires were collected with 97.69% for the valid recovery rate. Results Among those 127 nephrotic syndrome children, the total score of resilience was (99.84±12.53) . There were 15 (11.81%) children with the high level of resilience, 102 (80.31%) children with medium level and 10 (7.87%) children with the low level. Results showed that the score of child daily life had a positive correlation with the total score of children's resilience (P<0.05) ; scores of family members' fears of disease and difficulty of disease management had negative correlations with the score of children's coping style (P<0.05) ; score of family members' management ability had a positive correlation with the score of children's coping style (P<0.05) ; score of disease burn out was negatively correlated with the score of interpersonal relation (P<0.05) ; score of supporting each other of parents were positively correlated with the scores of children's individual characteristics and children's perceived family influence (P<0.05) . Conclusions Resilience and family management of nephrotic syndrome children need to be improved. Nurses should pay attention to the influence of family support and environmental support on psychological factors in children, and guide children to improve their coping capacity and family members to positively perceive children's school function, interpersonal relation and family environment to improve children's psychological health. Key words: Nephrotic syndrome; Resilience, psychological; Family management; Correlation