Does Stakeholder Management have a Dark Side?
- Carmelo CennamoAffiliated withDepartment of Strategic Management, Instituto de Empresa Business School
- , Pascual BerroneAffiliated withDepartment of Strategic Management, IESE Business School, University of Navarra Email author
- , Luis R. Gomez-MejiaAffiliated withDepartment of Management, Arizona State University
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This article is a first attempt to line out the conditions under which executives might have a real self-interest in pursuing a broad stakeholder management (SM) orientation to enlarge their power. We suggest that managers have wider latitude of action under an SM approach, even when this is instrumental to financial performance. The causally ambiguity of the performance effects of idiosyncratic relationships with stakeholders not only makes SM strategy difficult for competitors to imitate but also increases managerial discretion. When managers use this situation for their own benefit, they can undermine the purported goals of the SM approach. By analyzing some of the factors that might lead to such disfunctionalities, this article advances a theory of the potential dark side of SM.
Key wordscausal ambiguity corporate governance managerial discretion stakeholder management stakeholder theory
- Does Stakeholder Management have a Dark Side?
Journal of Business Ethics
Volume 89, Issue 4 , pp 491-507
- Cover Date
- Print ISSN
- Online ISSN
- Springer Netherlands
- Additional Links
- causal ambiguity
- corporate governance
- managerial discretion
- stakeholder management
- stakeholder theory
- Industry Sectors
- Author Affiliations
- 1. Department of Strategic Management, Instituto de Empresa Business School, Maria de Molina, 12, 28006, Madrid, Spain
- 2. Department of Strategic Management, IESE Business School, University of Navarra, Camino del Cerro del Águila, 3, 28023, Madrid, Spain
- 3. Department of Management, Arizona State University, Main Campus, PO Box 874006, Tempe, AZ, 85287-4006, U.S.A.