Abstract
The increasing attention placed by corporations on sustainable development due to the growing importance attributed to this issue by institutions at an international level, leads to a reconsideration of the concept of the global responsibility of companies as a pre-requisite for effective multi-stakeholder relationships. All levels of responsibility are taken into consideration within this broad spectrum: legal, social, economic and environmental, leading to a more integrated approach to management of reputation risk. This study is a theoretical reflection on the relationship between the interests of stakeholders, the extent of corporate responsibility and management of reputation risk.
Highlights
Great strategic and administrative complexity within companies results in a proportionate corporate global risk which draws the attention of financial and management scholars to the establishment of the concept of global responsibility which creates an effective relationship, based on trust and consent, between the various categories of stakeholders
Corporate social responsibility (CSR) actions can potentially generate goodwill and a better internal climate, or “moral capital” as defined by many authors (Brammer & Millington 2004; Sharfman & Fernando, 2008; Godfrey et al, 2009). This further reflects on the value created and is consistent with CSR’s risk mitigation vision, which is fundamental to the creation of corporate reputation (Fombrun, 2005)
A managerial approach characterised by a multi-level relationship with all stakeholders ensures long-term fidelity based on a solid reputation capable of limiting the various corporate risks, those linked to the environment and the company’s sustainability. This approach is consistent with the stakeholder orientation and with a risk mitigation vision or CSR concept similar to “insurance”
Summary
Great strategic and administrative complexity within companies results in a proportionate corporate global risk which draws the attention of financial and management scholars to the establishment of the concept of global responsibility which creates an effective relationship, based on trust and consent, between the various categories of stakeholders. Opportunities for corporations in their search to create value require strategy focused on meeting the numerous objectives and the relative corporate risks (Salvioni 2003; Jamali 2008; Brown & Forster 2013; Freeman 2017) In this respect, it is necessary to effectively combine requirements of flexibility, cost effectiveness and results, establishing a broader corporate responsibility and meeting the different expectation of the stakeholders. As already mentioned, in order to increase consent and resources becomes relevant: the interdependence between the management of relations with the environment, the capability to establish stakeholder engagement activities, the combination of economic, social and environmental responsibility and the definition of strategies and objectives in line with stakeholders expectations (Figure 1)
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