Business Commons^™

Instrumental Stakeholder Theory Makes Ethically Based Relationship Building Palatable To Managers Focused On The Bottom Line, Jeffrey S. Harrison, Will Felps, Thomas M. Jones

Management Faculty Publications

We appreciate the opportunity to engage in this dialogue with Weitzner and Deutsch (2019) to clarify the meaning and intent of some of the arguments found in our article, “How Applying Instrumental Stakeholder Theory Can Provide Sustainable Competitive Advantage” (Jones, Harrison, & Felps, 2018). We are grateful for the high praise from the authors regarding the rigor and logic of our applications of resource-based criteria to instrumental stakeholder theory (IST). We begin this response by highlighting a few areas of agreement, followed by some points where we disagree.

Stakeholder Theory, Robert A. Phillips, Jay B. Barney, R. Edward Freeman, Jeffrey S. Harrison

Management Faculty Publications

Though there is clearly a “family resemblance” to the work that is typically done under its bailiwick, stakeholder theory continues to resist precise circumscription. Like the organizations it attempts to understand, the boundaries of the theory remain contentious. While various attempts have been made to clearly define the parameters of stakeholder theory (i.e., Clarkson Center for Business Ethics, 1999; Donaldson & Preston, 1995; Freeman, et al., 2010; Jones & Wicks, 1999; Phillips, 2003; Phillips, Freeman & Wicks, 2003), none of these efforts has gained universal acceptance. The following, which combines ideas from a variety of well-known sources (Freeman, 1984; Freeman, …

Sustainable Wealth Creation: Applying Instrumental Stakeholder Theory To The Improvement Of Social Welfare, Thomas M. Jones, Jeffrey S. Harrison

Management Faculty Publications

This chapter briefly reviews core ideas and research results in the existing instrumental stakeholder theory (IST) literature and then applies the IST concept to the simultaneous pursuit of two objectives—advancing social welfare, the presumed goal of morally legitimate social systems in general, and preserving the key elements of shareholder wealth enhancement—the traditional goal of the corporation. In so doing, we expand the range of ethical approaches to IST beyond deontological principles (e.g., treat stakeholders fairly; be trustworthy in dealing with stakeholders) present in extant versions of IST, to a consequentialist focus (i.e., a utilitarian concern for “the greatest good for …

The Performance Implication Of Obsessive Work Passion: Unpacking The Moderating And Mediating Mechanisms From A Conservation Of Resources Perspective, Dejun Tony Kong, Violet T. Ho

Management Faculty Publications

Work passion is an important determinant of work performance. While harmonious work passion (HWP) shows its consistent predictive value, obsessive work passion (OWP) appears to have a mixed relationship with work performance. To address this puzzle, we integrate research on OWP and emotional exhaustion with conservation of resources (COR) theory. Specifically, we argue that OWP determines emotional exhaustion, whose relationship with work performance is attenuated by leader-member exchange (LMX). By conducting a field study with a sample of 262 U.S. employees, we found supportive evidence, even when controlling for psychological detachment from work. The findings somewhat reconcile the inconsistent results …

How Applying Instrumental Stakeholder Theory Can Provide Sustainable Competitive Advantage, Thomas M. Jones, Jeffrey S. Harrison, Will Felps

Management Faculty Publications

Instrumental stakeholder theory considers the performance consequences for firms of highly ethical relationships with stakeholders, characterized by high levels of trust, cooperation, and information sharing. While research suggests performance benefits, an obvious question remains: If instrumental stakeholder theory-based stakeholder treatment is so valuable, why isn't it the dominant mode of relating to stakeholders? We argue that the existing instrumental stakeholder theory literature has three shortcomings that limit its ability to explain variance in performance. (1) Little theory exists around how instrumental stakeholder theory-based stakeholder management could provide sustainable competitive advantage. (2) The literature has largely neglected the potential downsides (i.e., …

Moocs And The Online Delivery Of Business Education: What's New? What's Not? What Now?, Jonathan W. Whitaker, J. Randolph New, R. Duane Ireland

Management Faculty Publications

Although the past 2 decades have produced much promise (and accompanying research) on the use of information technology (IT) in business school courses, it is not entirely clear whether IT has truly "transformed" management education. There are compelling arguments on both sides. On one hand, advocates for the transformative role of IT can point to several success stories. On the other hand, skeptics of the role of IT in management education can also point to support for their view. This lack of consensus has led researchers in Academy of Management Learning & Education to call for scholars to confront the …

The Second Glass Ceiling Impedes Women Entrepreneurs, Douglas A. Bosse, Porcher L. Taylor Iii

Management Faculty Publications

The glass ceiling phenomenon that impedes the advancement of talented women professionals into senior executive roles inside large corporations is widely recognized in society, studied in the management literature, taught in business schools, and tangibly felt by many women executives. Outside the corporate setting, we show that a second glass ceiling exists for women entrepreneurs and women small business owners. This second glass ceiling is a gender bias that obstructs women-owned small firms from accessing the financial capital required to start new firms and fuel the growth of existing firms. This paper (1) defines the second glass ceiling phenomenon, (2) …

Stakeholder Theory: The State Of The Art, Bidhan L. Parmar, R. Edward Freeman, Jeffrey S. Harrison, Et Al.

Management Faculty Publications

A variety of forces are changing the way managers and executives make sense of their responsibilities. Globalization has brought a larger variety of participants into contemporary businesses, technological innovation has increased the pace of change, and managers are discovering that their actions have the potential to affect a broader range of people all over the globe (Clement, 2005). Additionally, the pursuit of corporate objectives can be easily disrupted by the actions of unexpected groups. These challenges, driven by change and interconnectedness, reveal a need for managers and academics to re-think the traditional ways of conceptualizing the responsibilities of the firm. …

Paul M. Klekner (B), Roger R. Schnorbus

Robins School of Business White Paper Series, 1980-2022

This is a fictitious case study, including the name of the restaurant and the people involved.

Paul Klekner graduated first in his class from the Culinary Institute of America (CIA) in 1998; his fellow students named him the chef most likely to succeed in the future. After graduation, he and his wife, Sarah, moved back to his home in Richmond, Virginia where he was employed as a chef at several restaurants including Bottega and Old Original Bookbinders. In 2003, he decided to open his own restaurant, Rogerios, in the Tobacco Row section of Richmond. With an inheritance of $300,000 he …

What Stakeholder Theory Is Not, Robert A. Phillips, R. Edward Freeman, Andrew C. Wicks

Management Faculty Publications

The term "stakeholder" is a powerful one. this is due, to a significant degree, to its conceptual breadth. The term means many different things to many different people and hence evokes praise or scorn for a wide variety of scholars and practitioners of myriad academic disciplines and backgrounds. Such breadth of interpretation, though one of stakeholder theory's greatest strengths, is also one of its most prominent theoretical liabilities as a topic of reasoned discourse. Much of the power of stakeholder theory is a direct result of the fact that, when used unreflectively, its managerial prescriptions and implications are nearly limitless. …

Assessing Intended Employee Behavior In Exit Interviews: Attitudinal And Status Effects, Robert A. Giacalone, Ron A. Dibattista, David Duhon

Robins School of Business White Paper Series, 1980-2022

In order to assess the effects that attitudes toward particular aspects of work life and status (management vs . non-management) might have on the intended willingness to discuss issues during exit interviews, managerial and non-managerial workers were asked to evaluate their attitudes toward particular aspects of work life, as well as their willingness to discuss these issues during an exit interview. Results showed that status alone did not affect willingness to discuss issues, but that attitudes and status had an interactive effect on willingness.

The Comparative Effectiveness Of Impression Management Tactics On The Recommendation Of Grievant Punishment: An Exploratory Investigation, Robert A. Giacalone, Hinda Greyser Pollard

Robins School of Business White Paper Series, 1980-2022

They study applied the literatures on extra-legal variables and self-presentation toward an understanding of judgment biases in arbitration. Subjects were provided with a written case of a grievance over the firing of an employee for drinking on the job. The extra-legal variable of previous record was manipulated by providing subjects with a case in which the grievant had previously been drinking on the job or had never done so before. This was crossed with the manipulation of the impression management variable in which the subjects read either the grievant's use of tactics known as an account or an apology. …

Discussion Willingness In The Exit Interview: A Role-Play Field Investigation, Robert A. Giacalone

Robins School of Business White Paper Series, 1980-2022

The study sought to determine the effect of feelings on willingness to discuss issues during exit interviews. Using a role play methodology, subjects were asked to role play either positive or negative feelings toward their company. They were then asked to role play how willing they would be to discuss particular work-related issues. Results show that while diverging feelings toward the company yield few differences in willingness to discuss issues, differing feelings toward the interviewer yielded greater willingness to discuss issues. Additionally, it was found that on a number of issues, greatest willingness to discuss was evident when there was …

Selecting A Strategy For Determining Information Requirements, Mohammed H. Omar

Robins School of Business White Paper Series, 1980-2022

There is and continues to be an awareness in society that accurate and timely information is a vital resource of any organization, and that an effective management information system is a means of providing the needed information. In an answer to the question: why do organizations process information? Daft [6] presents two answers. Organizations process information to reduce uncertainty and equivocality. As information increases, uncertainty decreases. In situations where organizations are faced with a high degree of uncertainty, a large number of questions has to be asked and more information needs to be acquired to learn the answers. The assumption …

The Impact Of Office Automation On Quality Worklife, Mohammed H. Omar, Charlotte A. Fugett

Robins School of Business White Paper Series, 1980-2022

The proliferation of office automation in the workplace environment has been accompanied by a wave of growing concern over the potential negative side effects on the quality of worklife of user employees. Issues'which have surfaced include: visual, postural and other health hazards; increased work stress; and adverse impact on the overall quality of life. The purpose of this paper is to describe some of these problems and report on both the findings and recommendations of various studies that have been conducted on these issues. This paper is also intended to emphasize the vital role that authorities involved in the management …

The Hidden Challenges Of Retail Expansion, Larry N. Bitner, Judith D. Powell

Robins School of Business White Paper Series, 1980-2022

Successful small retailers invariably are tempted to test the adage "more is better." While the expansion allure is more than many can resist, it must be tempered by the realization that many hidden challenges await the unsuspecting entrepreneur.

Success of the new organization will required not only ore but a different kind of effort than used in managing the single store. First, successful operation will now depend on delegating operating decision to professional managers. The autonomy given these managers in a complex decision and may be placed anywhere within a three dimensional continuum depending on the desired image, supervision, and …

Corporate Diseases Of Excellence, J. Kenneth Matejka, D. Neil Ashworth

Robins School of Business White Paper Series, 1980-2022

Corporations, like people, develop various afflictions during their evolution. Sometimes these ailments are from outdated habits; sometimes they are caused by frailties; sometimes they are just the product of youth or age; and occasionally they result from tremendous exertions of energy in the pursuit of being the best, which are followed by eventual breakdowns.

This article will examine what we consider to be the top 5 corporate diseases of excellence—those management maladies which prevent the majority of U.S. corporations from being great and stop the successful corporations from being even better. The common thread running through all 5 afflictions is …