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How much is too much? The limits to generous treatment of stakeholders

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  • Harrison, Jeffrey S.
  • Bosse, Douglas A.

Abstract

Firms must allocate some minimum amount of value to stakeholders in order to retain access to the resources they provide. Stakeholder theory suggests managers optimize firm-level performance by allocating more than this minimum amount. However, how much is too much? This article addresses the misleading notion that more is always better when it comes to the treatment of stakeholders and, in doing so, provides needed refinement of the boundary of stakeholder theory's predictions. The upside for managers is guidance in distinguishing between the types of value-allocating behaviors that will lead to greater value creation in their firms and actions that are likely to reduce value overall.

Suggested Citation

  • Harrison, Jeffrey S. & Bosse, Douglas A., 2013. "How much is too much? The limits to generous treatment of stakeholders," Business Horizons, Elsevier, vol. 56(3), pages 313-322.
    • Handle: RePEc:eee:bushor:v:56:y:2013:i:3:p:313-322
    DOI: 10.1016/j.bushor.2013.01.014
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    References listed on IDEAS

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    Cited by:

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    4. José-Luis Godos-Díez & Roberto Fernández-Gago & Laura Cabeza-García, 2019. "How Does Reciprocity Affect Undergraduate Student Orientation towards Stakeholders?," Sustainability, MDPI, vol. 11(21), pages 1-15, October.
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    8. Hasan, Iftekhar & Kobeissi, Nada & Liu, Liuling & Wang, Haizhi, 2016. "Corporate social responsibility and firm financial performance: the mediating role of productivity," Bank of Finland Research Discussion Papers 7/2016, Bank of Finland.
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    13. Megan F. Hess & Andrew M. Hess, 2016. "Stakeholder-Driven Strategic Renewal," International Business Research, Canadian Center of Science and Education, vol. 9(3), pages 53-67, March.
    14. Chiu, Sana (Shih-chi) & Hoskisson, Robert E. & Tony Kong, Dejun & Li, Andrew & Shao, Ping, 2023. "Predicting primary and secondary stakeholder engagement: A CEO motivation-means contingency model," Journal of Business Research, Elsevier, vol. 160(C).
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    16. Richard A. Bettis & Constance E. Helfat & J. Myles Shaver & Xiaoping Zhao & Audrey J. Murrell, 2016. "Revisiting the corporate social performance-financial performance link: A replication of Waddock and Graves," Strategic Management Journal, Wiley Blackwell, vol. 37(11), pages 2378-2388, November.
    17. Mousa Mohamed, 2018. "The Phenomenon of Climate Change in Organization and HR-Related Literature: A Conceptual Brief Analysis," Valahian Journal of Economic Studies, Sciendo, vol. 9(1), pages 101-108, April.
    18. Iftekhar Hasan & Nada Kobeissi & Liuling Liu & Haizhi Wang, 2018. "Corporate Social Responsibility and Firm Financial Performance: The Mediating Role of Productivity," Journal of Business Ethics, Springer, vol. 149(3), pages 671-688, May.
    19. Magrizos, Solon & Apospori, Eleni & Carrigan, Marylyn & Jones, Rosalind, 2021. "Is CSR the panacea for SMEs? A study of socially responsible SMEs during economic crisis," European Management Journal, Elsevier, vol. 39(2), pages 291-303.
    20. repec:zbw:bofrdp:2016_007 is not listed on IDEAS
    21. Kirsten Martin & Robert Phillips, 2022. "Stakeholder Friction," Journal of Business Ethics, Springer, vol. 177(3), pages 519-531, May.
    22. Bill Francis & Iftekhar Hasan & Liuling Liu & Haizhi Wang, 2019. "Employee Treatment and Contracting with Bank Lenders: An Instrumental Approach for Stakeholder Management," Journal of Business Ethics, Springer, vol. 158(4), pages 1029-1046, September.
    23. Carl Rhodes & Robert Westwood, 2016. "The Limits of Generosity: Lessons on Ethics, Economy, and Reciprocity in Kafka’s The Metamorphosis," Journal of Business Ethics, Springer, vol. 133(2), pages 235-248, January.
    24. Mousa Mohamed, 2018. "The Phenomenon of Climate Change in Organization and HR- Related Literature: A Conceptual Brief Analysis," HOLISTICA – Journal of Business and Public Administration, Sciendo, vol. 9(1), pages 113-121, May.

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