Abstract
O bjective – The purpose of this study is to understand how top Brazilian firms think about and communicate value creation to their stakeholders. Design/methodology/approach – We use qualitative content analysis methodology to analyze the sustainability or annual integrated reports of the top 25 Brazilian firms by sales revenue. Findings – Based on our analysis, these firms were classified into three main types of stakeholder value creation models: narrow, broad, or transitioning from narrow to broad. We find that many of the firms in our sample are in a transition state between narrow and broad stakeholder value creation models. We also identify seven areas of concentration discussed by firms in creating value for stakeholders: better stakeholder relationships, better work environment, environmental preservation, increased customer base, local development, reputation, and stakeholder dialogue. Practical implications – This study shows a trend towards broader stakeholder value creation models in Brazilian firms. The findings of this study may inform practitioners interested in broadening their value creation models.
Highlights
This study shows a trend towards broader stakeholder value creation models in Brazilian firms
One of the fundamental questions in stakeholder theory is for whom managers and organizations seek to create value, a topic that has been much debated within various literatures (e.g., Freeman, Harrison, & Wicks, 2007; Freeman, Wicks, & Parmar, 2004; Sundaram & Inkpen, 2004)
Using qualitative content analysis of the parts of these reports most germane to our analysis – the CEO/President’s message; the message from the Board of Directors or chairman of the Board; mission, vision, and values statements; and the materiality matrix – we find that a large proportion of the firms are in a transition state between narrow and broad stakeholder value creation orientations
Summary
One of the fundamental questions in stakeholder theory is for whom managers and organizations seek to create value, a topic that has been much debated within various literatures (e.g., Freeman, Harrison, & Wicks, 2007; Freeman, Wicks, & Parmar, 2004; Sundaram & Inkpen, 2004). Related to this question is how organizations create value for stakeholders and whether some stakeholders have higher claims for managerial attention in this regard than others (Mitchell, Agle, & Wood, 1997). An organization’s choice of value creation strategy – whether implicit or explicit and intentional or emergent – has implications for its stakeholder management and strategic management processes
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