Advertisement

Journal of Business Ethics

, Volume 91, Supplement 2, pp 171–192 | Cite as

Stakeholders Pressures and Strategic Prioritisation: An Empirical Analysis of Environmental Responses in Argentinean Firms

  • D. A. Vazquez-Brust
  • C. Liston-Heyes
  • J. A. Plaza-Úbeda
  • J. Burgos-Jiménez
Article

Abstract

This article focusses on corporate attitudes to stakeholder environmental pressures in Argentina. It uses a cross section survey of 505 CEOs of Argentinean firms to gather information on environmental attitudes and a stakeholder theory framework to design and interpret the statistical analyses. It is underpinned by theoretical and empirical findings in the literature on stakeholder management, targeting in particular studies that deal with corporate social responsibility (CSR) in Latin America. Its general aim is to gain a deeper empirical understanding of the coherence between managers’ perceptions of stakeholder pressures and the importance they are given in corporate CSR strategies through an empirical investigation of environmental management (EM) decisions. In doing so, it uncovers general differences in the way firms perceive and treat groups of stakeholders. It also detects variations across firms, observing that some are typically proactive in their response to stakeholder pressures whilst others are less responsive. Profiling the various stakeholder networks and the corporate response strategies in this way encourages the development of stakeholder-focussed policies and corporate strategies that emphasise communications, awareness and a clear sense of direction. It concludes that CSR appears to be more effective in the protection of the environment than previously reported. Although this study focusses on EM in Argentina, the findings are more generally applicable.

Keywords

corporate social responsibility environmental management environmental strategy stakeholder management stakeholder pressures 

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. Aaltonen K., K. Jaakko and O. Tuoumas: 2008, ‘Stakeholder Salience in Global Projects’, International Journal of Project Management 26, 509–516.CrossRefGoogle Scholar
  2. Aguilera, R. V., Rupp, D. E., Williams, C. A. and J. Ganapathi: 2007. ‘Putting the S back in Corporate Social Responsibility: a Multilevel Theory of Social Change in Organizations’, Academy of Management Review, 32, 836–863.Google Scholar
  3. Benn, S., D. Dunphy and A. Martin: 2008, ‘Governance of Environmental Risk: New Approaches to Managing Stakeholder Involvement’, Journal of Environmental Management (in press). doi: 10.1016/j.jenvman.2008.05.011.
  4. Birdsall, N. and D. Wheeler: 1992, ‘Trade Policy and Industrial Pollution in Latin America: Where are the Pollution Havens?’, in P. Low (ed.), International Trade and the Environment, World Bank Discussion Paper 159 (World Bank, Washington DC), pp. 159–167.Google Scholar
  5. Black, L.D. and C. Hartel: 2004, ‘The Five Capabilities of Socially Responsible Companies’. Journal of Public Affairs, 4 (2), 125-144.CrossRefGoogle Scholar
  6. Bowen, N.: 2000, ‘Environmental Visibility: A Trigger of Green Organizational Response?’ Business Strategy and the Environment, 9, 92-107.CrossRefGoogle Scholar
  7. Brenner, S. N. and P. L. Cochran: 1991, ‘The Stakeholder Model Of The Firm: Implications For Business And Society Research’, in F. J. Mahon (ed.), Proceedings of the Second Annual Meeting of the International Association for Business and Society (International Association for Business and Society, Sundance), pp. 449–467.Google Scholar
  8. Buysse, K. and A. Verbeke, A.: 2003, ‘Proactive Environmental Strategies: A Stakeholder Management Perspective’, Strategic Management Journal, 24 (5), 453-470.CrossRefGoogle Scholar
  9. Carroll, A.B.: 1979, ‘A Three-Dimensional Model of Corporate Performance’, Academy of Management Review , 4 (4), 497-505.CrossRefGoogle Scholar
  10. Carter, S. M.: 2006, ‘The Interaction of Top Management Group, Stakeholder, and Situational Factors on Certain Corporate Reputation Management Activities’, The Journal of Management Studies, 43(5), 1145-1176.CrossRefGoogle Scholar
  11. Céspedes-Lorente, J.; J. De Burgos-Jiménez and M. J. Álvarez-Gil: 2003, ‘Stakeholders′Environmental Influence. An Empirical Analysis in The Spanish Hotel Industry’, Scandinavian Journal of Management , 19, 333-358.CrossRefGoogle Scholar
  12. Cetindamar, D. and K. Husoy: 2007, ‘Corporate Social Responsibility Practices and Environmentally Responsible Behaviour: The Case of the United Nations Global Impact’. Journal of Business Ethics, 76 (2), 163-176.CrossRefGoogle Scholar
  13. Chudnovsky, D., G. Pupato and V. Gutman: 2005, Environmental Management and Innovation in Argentine Industry: Determinants and Policy Implications, Documento Tecnico N° 36 (Fundación CENIT, Buenos Aires).Google Scholar
  14. Clarkson, M. B. E.: 1991, ‘Defining, Evaluating, and Managing Corporate Social Performance: A Stakeholder Management Model’, in J. E. Post (ed.), Research in Corporate Social Performance and Policy (JAI Press, Greenwich), pp. 331–358.Google Scholar
  15. Clarkson, M.B.E.: 1995, ‘A Stakeholder Framework for Analyzing and Evaluating Corporate Social Performance’, Academy of Management Review, 20, 92-117.CrossRefGoogle Scholar
  16. Coakes, S. J. and L. G. Steed: 1999, SPSS: Analysis without anguish. (John Wiley and Sons, Queensland).Google Scholar
  17. Dahlman, F., S. Brammer and A. Millington: 2008, ‘Environmental Management in the United Kingdom: new survey evidence’, Management Decisions, 46 (2), 264-283. CrossRefGoogle Scholar
  18. Darier, E.: 1999, Discourses of the Environment, (Blackwell Publishing Ltd, Oxford).Google Scholar
  19. Dasgupta, S., H. Hettige and D. Wheeler: 2000, ‘What Improves Environmental Performance: Evidence from the Mexican Industry’. Journal of Environmental Economics and Management, 39(1), 39-66.CrossRefGoogle Scholar
  20. Dasgupta, S., B. Laplante and C. Meisner: 2001, ‘Environmental News in Argentina, Chile, Mexico and the Philippines’, Local Environment 5, 351-359.CrossRefGoogle Scholar
  21. Delmas, M. and M. Toffel: 2008, ‘Organizational Responses to Environmental Demands: Opening the Black Box’, Strategic Management Journal, 29 (10), 1027-1042.CrossRefGoogle Scholar
  22. Drago, W.: 1998, ‘Predicting Organisational Objectives: Role of Stakeholder Influence and Volatility of Environmental Sectors’. Management Research, 21 (9), 16-28.Google Scholar
  23. Dryzek, J.S.: 1997, The Politics of the Earth (Oxford University Press, Oxford).Google Scholar
  24. Dutton, J.E. and R. B. Duncan: 1987, ‘The Creation of Momentum for Change through the Process of Strategic Issue Diagnosis’. Strategic Management Journal, 8 (3), 279-295.CrossRefGoogle Scholar
  25. Eskeland, G. S. and E. Jimenez: 1992, ‘Policy Instruments for Pollution Control in Developing Countries’, The World Bank Research Observer, 7 (2), 145-169.CrossRefGoogle Scholar
  26. Etzion, D.: 2008, ‘Research on Organizations and the Natural Environment, 1992- Present: A Review’, Journal of Management, 33, 637-664.CrossRefGoogle Scholar
  27. Fassin, Y.: 2008, ‘The Stakeholder Model Refined’, Journal of Business Ethics, 84, 113-135.CrossRefGoogle Scholar
  28. Freeman, R. E.:1984, Strategic Management: A Stakeholder Approach , (Pitman Publishing, Boston).Google Scholar
  29. García-Johnson, R.: 2000, Exporting Environmentalism: U S Multinational Chemical Corporations in Brazil and Mexico, (MIT Press, Cambridge, MA).Google Scholar
  30. Gonzalez-Benito, J. and O. Gonzalez-Benito: 2006, ‘A Review of Determinants Factors of Environmental Proactivity’, Business Strategy and the Environment, 15 (2), 87-103.CrossRefGoogle Scholar
  31. Grynspan, R. and B. Kliksberg: 2008, ‘Corporate Social Responsibility in Latin America: Not a Waste of Time or Money’, Foreign Policy July/August, 167–169.Google Scholar
  32. Guidi, M.: 2008, ‘Rethinking Corporate Social Responsibility: A Case Study in Argentina from the Point of View of the Civil Society’, Nómadas: Revista Crítica de Ciencias Sociales y Jurídicas 19(3), http://redalyc.uaemex.mx/redalyc/pdf/181/18101919.pdf.
  33. Guidi, M., J. Hillier and H. Tarbert.: 2008, ‘Maximizing the Firm’s Value to Society through Ethical Business Decisions: Incorporating “Moral Debt” Claims’. Critical Perspectives on Accounting, 19(4), 603-619.CrossRefGoogle Scholar
  34. Haslam, P. A.: 2004. ‘The Corporate Social Responsibility System in Latin America and the Caribbean’, FOCAL Policy Papers; FPP-04-1, March, http://www.focal.ca/pdf/csr_04.pdf.
  35. Henriques, I. and P. Sadorsky: 1996, ‘The Determinants of an Environmental Responsive Firm: An Empirical Approach’, Journal of Environmental Economics and Management, 30 (3), 381-395.CrossRefGoogle Scholar
  36. Henriques, I. and P. Sadorsky: 1999, ‘The Relationship between Environmental Commitment and Managerial Perceptions of Stakeholder Importance’. Academy of Management Journal , 42 (1), 87-99.CrossRefGoogle Scholar
  37. Hochstetler, K.: 2002, ‘After the boomerang: Environmental Movement and Politics in the La Plata River Basin’, Global Environment Politics, 2, 35-58.CrossRefGoogle Scholar
  38. Hochstetler, K.: 2003, ‘Fading Green? Environmental Politics in the Mercosur Free Trade Agreement’, Latin American Politics and Society, 45 (4), 1-32.CrossRefGoogle Scholar
  39. Hunt, C.B. and E. R. Auster: 1990, ‘Proactive Environmental Management: Avoiding The Toxic Trap’, Sloan Management Review , 31 (2), 7-18.Google Scholar
  40. Kaiser, F. G., S. Wolfing and U. Fuhrer: 1999, ‘Environmental Attitude and Ecological Behavior’, Journal of Environmental Psychology, 19, 1-19.CrossRefGoogle Scholar
  41. King, A. and M. Lenox: 2000, ‘Industry Self-regulation without Sanctions: The Chemical Industry′s Responsible Care Program’, Academy of Management Journal , 43 (4), 698-716.CrossRefGoogle Scholar
  42. Knox, S., S. Maklan and P. French: 2005, ‘Corporate Social Responsibility: Exploring Stakeholder Relationships and Programme Reporting across Leading FTSE Companies’, Journal of Business Ethics, 61(1), 7–28.CrossRefGoogle Scholar
  43. Madsen, H. and Ulhoi, J.P.: 2001, ‘Integrating Environmental and Stakeholder Management’, Business Strategy and the Environment , 10: 77-88.CrossRefGoogle Scholar
  44. Martínez-Alier, J.: 2002, The Environmentalism of the Poor. A study of Ecological Conflicts and Valuation. (Edward Elgar Publishing: Cheltenham).Google Scholar
  45. Mastrandonas, A. and P. T. Strife: 1992, ‘Corporate Environmental Communications: Lessons from Investors’, Columbia Journal of World Business, 27(3, 4), 234-240.Google Scholar
  46. Mitchell, R.K.; B. R. Agle and D. J. Wood: 1997, ‘Toward A Theory Of Stakeholder Identification and Salience: Defining The Principles Of Who And What Really Counts’. Academy of Management Review, 22 (4), 853-886.CrossRefGoogle Scholar
  47. Montiel, I.: 2008, ‘Corporate Social Responsibility and Corporate Sustainability: Separate Pasts, Common Futures’, Organization Environment, 21: 245-269.CrossRefGoogle Scholar
  48. Murillo-Luna, J.L.; C. Garcés-Ayerbe, C. and P. Rivera-Torres: 2008, ‘Why do Patterns of Environmental Response Differ? A Stakeholders’ Pressure Approach’. Strategic Management Journal, 29 (11), 1225-1240.CrossRefGoogle Scholar
  49. Newell, P. and A. Muro: 2006, ‘Corporate Social and Environmental Responsibility in Argentina: The Evolution of an Agenda’, Journal of Corporate Citizenship, 24, 49-68.Google Scholar
  50. Observatorio de la Responsabilidad Social Corporativa: 2008, ‘Indicadores Temáticos de RSC’, http://www.observatoriorsc.org.
  51. Orlitzky, M., F.L. Schmidt and S.L. Rynes: 2003, ‘Corporate Social and Financial Performance: A Meta-analysis’, Organization Studies 24: 403–41.CrossRefGoogle Scholar
  52. Peinado-Vara, E.: 2006, Corporate Social Responsibility in Latin America. Journal of Corporate Citizenship, 21, pp. 61-69.Google Scholar
  53. Perrini, F., A. Russo and A. Tencati: 2007, ‘CSR Strategies of SMEs and Large Firms. Evidence from Italy’, Journal of Business Ethics, 74(3), 285–300.CrossRefGoogle Scholar
  54. Plaza-Ubeda, J. A., J. Burgos-Jiménez, D. A. Vazquez-Brust and C. Liston-Heyes: 2009, ‘The Win-Win Paradigm and Stakeholder Integration’, Business Strategy and the Environment 18(8), 487–499.Google Scholar
  55. Polonsky, M.J.: 1995, ‘A Stakeholder Theory Approach to Designing Environmental Marketing Strategy’, Journal of Business and Industrial Marketing, 10, 29-46.CrossRefGoogle Scholar
  56. Post, J.E., L. E. Preston and S. Sachs: 2002, Redefining The Corporation: SM and Organizational Wealth’, (Stanford University Press: Stanford).Google Scholar
  57. Pratt, L. and E. Fintel: 2002, ‘Environmental Management as an indicator of Business Responsibility in Central America’, in P. Utting (ed.), The Greening of Business in Developing Countries: Rhetoric, Reality and Prospects (Zed Books in association with UNRISD, London), pp. 41–57.Google Scholar
  58. Pumpim de Oliveira, J.A. and M.A. Gardetti: 2006, ‘Analysing Changes to Prioritise Corporate Citizenship’, The Journal of Corporate Citizenship, 21, 71- 83.Google Scholar
  59. Retolaza, J. L., M. Ruiz, M and L. San-Jose: 2009, ‘CSR in Business Start-Ups: An Application Method for Stakeholder Engagement’, Journal of Corporate Social Responsibility and Environmental Management 16, 324–336Google Scholar
  60. Richardson, T.: 1996, ‘Foucaldian Discourse: Power in Truth in the Policy Process’, European Planning Studies, 4 (3), 279-292.Google Scholar
  61. Rivera-Camino, J.: 2007, ‘Re-evaluating Green Marketing Strategy: a Stakeholder Perspective’, European Journal of Marketing, 11/12: 1328-1358.CrossRefGoogle Scholar
  62. Roome, N.: 1992, ‘Developing Environmental Management Systems’, Business Strategy and the Environment, 1, 11-24.CrossRefGoogle Scholar
  63. Rowley, T.J.: 1997, Moving Beyond Dyadic Ties: A Network Theory Of Stakeholder Influences. Academy Of Management Review , 22 (4), 887-910.CrossRefGoogle Scholar
  64. Ruiz-Tagle, M. T.: 2003, ‘New Approaches to Environmental Regulation in Less Developed Countries: The Case of Chile’, Ph.D. Dissertation, University of Cambridge.Google Scholar
  65. Scherer, A. G. and G. Palazzo: 2007, ‘Towards a Political Conception of Corporate Responsibility. Business and Society Seen from a Habermasian Perspective’, Academy of Management Review, 32(4):1096-1120.Google Scholar
  66. Schmidheiny, S. (2006): ‘A View of Corporate Citizenship in Latin America’. Journal of Corporate Citizenship, 21, 21-24.Google Scholar
  67. Sharma, S.: 2000, ‘Managerial Interpretations and Organizational Context as Predictors of Corporate Choice of Environmental Strategy’, Academy of Management Journal, 43, 4, 681-687.CrossRefGoogle Scholar
  68. Sharp, S.: 1999, ‘Local Policy for the Global Environment: In search of a New Perspective’, Environmental Politics, 8 (4) 137-159.Google Scholar
  69. Sirgy, M.J.: 2002, ‘Measuring Corporate Performance by Building on the Stakeholders’ Model of Business Ethics’, Journal Of Business Ethics, 35, 143-162.CrossRefGoogle Scholar
  70. Soderbaum, P.: 1999, ‘Values, Ideology and Politics in Ecological Economics’, Ecological Economics 28, 161-170.CrossRefGoogle Scholar
  71. Torres-Baumgarten, G. and V.Yucetepe: 2009, ‘Multinational Firms’ Leadership Role in Corporate Social Responsibility in Latin America’, Journal of Business Ethics, 85, 217-224.CrossRefGoogle Scholar
  72. Ulhøi, J. P. and H. Madsen.: 2005, ‘The Firm- Nature Relationship: Past Experiences and Future Challenges’, in S. Sharma and J. A. Aragón-Correa (eds.), Corporate Environmental Strategy and Competitive Advantage (Edward Elgar, Cheltenham), pp. 210–232.Google Scholar
  73. Van der Laan, G., H. Van Ees and A. Van Witteloostuijn: 2008, ‘Corporate Social and Financial Performance: An Extended Stakeholder Theory, and Empirical Test with Accounting Measures,’ Journal of Business Ethics, 79, 299-310.CrossRefGoogle Scholar
  74. Vazquez-Brust, D. A.: 2007, ‘An Attitudinal-Discursive Approach to Environmental Performance: The Case of Argentina’s Polluting Firms’, Ph.D. Dissertation, Royal Holloway University of London.Google Scholar
  75. Vazquez-Brust, D. A: and C. Liston-Heyes: 2008, ‘Corporate Discourse and Environmental Performance in Argentina’. Business Strategy and the Environment, 17, 179-193.CrossRefGoogle Scholar
  76. Vazquez-Brust, D. A. and C. Liston-Heyes: 2010, `Environmental Management Intentions: An Empirical Investigation of Argentina's Polluting Firms', Journal of Environmental Management 91, 1111–1122Google Scholar
  77. Vazquez-Brust, D., J. A. Plaza-Úbeda, C. Natenzon and J. Burgos-Jiménez: 2009, ‘The Challenges of Businesses’ Intervention in Areas with High Poverty and Environmental Deterioration: Promoting an Integrated Stakeholders’ Approach in Management Education’, in C. Wankel and J. Stoner (eds.), Management Education for Global Sustainability (Information Age Publishing, New York), pp. 175–206.Google Scholar
  78. Vives, A: 2006, Social and Environmental Responsibility in Small and Medium Enterprises in Latin America, Journal of Corporate Citizenship, 21, 39-50.Google Scholar
  79. Walsh, J. P., K. Weber, and J. D. Margolis: 2003. Social issues and management: Our lost cause found. Journal of Management, 29: 859-881.Google Scholar
  80. Wartick, S.L. and P. L. Cochran: 1985, ‘The Evolution of The Corporate Social Performance Model’, Academy of Management Review , 10: 758-769.CrossRefGoogle Scholar
  81. Wong, L. T., and G. E. Fryxell: 2004, ‘Stakeholder influences on Environmental Management Practices: A study of Fleet Operations in Honk Kong (SAR)’, China. Transportation Journal, 43(4), 22-35.Google Scholar
  82. Zakhem, A.: 2008, ‘Stakeholders Management Capability: A Discourse-Theoretical Approach’, Journal of Business Ethics, 79: 395-405.CrossRefGoogle Scholar

Copyright information

© Springer Science+Business Media B.V. 2010

Authors and Affiliations

  • D. A. Vazquez-Brust
    • 1
  • C. Liston-Heyes
    • 2
  • J. A. Plaza-Úbeda
    • 3
  • J. Burgos-Jiménez
    • 3
  1. 1.Centre for Business Relationships, Accountability, Sustainability and Society (BRASS)Cardiff UniversityCardiffU.K.
  2. 2.School of ManagementRoyal Holloway, University of LondonEghamU.K.
  3. 3.Department of Business Administration, Faculty of Business and EconomicsUniversity of AlmeríaAlmeriaSpain

Personalised recommendations