When do societal stakeholders matter for agency‐CEOs? The role of stakeholder arrangements and social media attention

Abstract

AbstractPublic agencies have to deal with accountability demands from various societal stakeholders. Stakeholders may address their accountability demands via formal stakeholder arrangements but can also use social media for account‐holding purposes. This contribution analyzes to what extent these different venues of social accountability affect the perceived relevance of societal stakeholders to agency‐CEOs—their so‐called “stakeholder orientation.” By combining quantitative and qualitative data, this study shows that agency‐CEOs' stakeholder orientation is strongly associated with actual social media attention. In contrast, the relationship between formal stakeholder arrangements and stakeholder orientation is weak. Qualitative insights from focus group discussions suggest that the associations between social media attention and stakeholder orientation can be explained by mediatization processes within agencies and the reputational risks of social media storms. Overall, the findings support that social media attention is the most important catalyst for stakeholder orientation, rather than stakeholder arrangements.