Stakeholders Are Human: The Micro-foundations of Stakeholder Theory and an Application to the Value Distribution Problem
Series
Humanizing Business. Issues in Business Ethics
Type
book section
Date Issued
2022-05-31
Author(s)
Editor(s)
Dion, M.
Freeman, R.E.
Dmytriyev, S.D.
Abstract (De)
Since stakeholder theory revolves around the management of firm-stakeholder relationships, it requires a profound understanding of stakeholders and their human nature. Insights from (social) psychology and other behavioral disciplines can therefore benefit stakeholder theory enormously. However, research that explores such micro-foundations of stakeholder theory is still scarce. To highlight resulting limitations in our understanding of stakeholders and their relationships with firms, this chapter serves three purposes. First, it provides selected examples of insightful micro-level research to illustrate the ability of micro-theory to inform stakeholder theory. Topics include organizational justice, reciprocity and generalized exchange, ethics and values, cooperation and conflict, trust, relational bonding, and culture. Second, this chapter suggests some micro-theoretical topics that represent promising avenues for future research. Included are expectancy theory, escalating commitment, cognition, sensemaking, goal setting (framing), and exchange rules. Third, this chapter illustrates the potential impact of micro-foundations research on stakeholder theory by applying goal framing and exchange rules to a central problem in stakeholder management, viz. the question of how much value a firm needs to allocate to a stakeholder in order to motivate his/her ongoing contribution to value creation. This micro-theoretical approach advances our understanding of the value distribution problem.
Language
English
Keywords
Stakeholder theory
Organizational justice
Reciprocity
Trust
Escalating commitment
Sensemaking
Organizational justice
Reciprocity
Trust
Escalating commitment
Sensemaking
HSG Classification
contribution to scientific community
HSG Profile Area
Global Center for Entrepreneurship + Innovation
Book title
Humanizing Business. Issues in Business Ethics
Publisher
Springer
Volume
53
Subject(s)
Eprints ID
270140