Exploring the (Mis)alignment of Multiple Stakeholder Role Identities

Abstract

Stakeholder theorists have seldom studied individual stakeholders’ multiple identities. This study employs insights from social identity and self-categorization theories to explore the consequences of multiple stakeholder role identities that are aligned or conflict, both from the stakeholders’ and firm’s perspectives. We focus on the positive and negative consequences of the (mis)alignment of identities on stakeholders’ well-being and on their behaviors toward a firm. We offer four avenues for companies to align further compatible stakeholder role identities – allowing, empowering, extending, and creating – and four strategies to mitigate conflicting stakeholder role identities – emphasizing, compartmentalizing, suppressing, and integrating. Each approach is illustrated using examples and a set of propositions is developed. Our work contributes to the burgeoning field exploring the microfoundations of stakeholder theory and opens up important ways to integrate identity into the stakeholder approach.