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Innovative Stakeholder Relations: When “Ethics Pays” (and When it Doesn’t)

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  • Harting, Troy R.
  • Harmeling, Susan S.
  • Venkataraman, S.

Abstract

Business ethicists are eager to connect the ethical treatment of stakeholders with financial rewards. However, little attention has been paid to the cultural and industry context that influences how stakeholders are regarded by the firm, and how innovative strategies for engaging stakeholders can help a firm outperform its competitors. By reconnecting stakeholder theory to its roots in the field of strategy, we provide a framework for understanding the dynamic interplay between stakeholder relationships, innovation, and competitive advantage. The result is a set of testable propositions aimed at better characterizing when and how “ethics pays” (Paine 2003).

Suggested Citation

  • Harting, Troy R. & Harmeling, Susan S. & Venkataraman, S., 2006. "Innovative Stakeholder Relations: When “Ethics Pays” (and When it Doesn’t)," Business Ethics Quarterly, Cambridge University Press, vol. 16(1), pages 43-68, January.
    • Handle: RePEc:cup:buetqu:v:16:y:2006:i:01:p:43-68_00
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    Citations

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    Cited by:

    1. Jill A. Küberling-Jost, 2021. "Paths of Corporate Irresponsibility: A Dynamic Process," Journal of Business Ethics, Springer, vol. 169(3), pages 579-601, March.
    2. Harris, Jared D. & Sapienza, Harry J. & Bowie, Norman E., 2009. "Ethics and entrepreneurship," Journal of Business Venturing, Elsevier, vol. 24(5), pages 407-418, September.
    3. Sonia Chien-I Chen & Chenglian Liu & Ridong Hu, 2020. "Fad or Trend? Rethinking the Sustainability of Connected Health," Sustainability, MDPI, vol. 12(5), pages 1-22, February.
    4. Robert Giacalone & Mark Promislo, 2010. "Unethical and Unwell: Decrements in Well-Being and Unethical Activity at Work," Journal of Business Ethics, Springer, vol. 91(2), pages 275-297, January.
    5. Kevin Clark & Narda Quigley & Stephen Stumpf, 2014. "The Influence of Decision Frames and Vision Priming on Decision Outcomes in Work Groups: Motivating Stakeholder Considerations," Journal of Business Ethics, Springer, vol. 120(1), pages 27-38, March.
    6. Michel Renault & Yvan Renou, 2007. "Processus d'individuation, éthique et pragmatisme. A la recherche de fondements théoriques pour appréhender la firme partenariale," Post-Print halshs-00202148, HAL.
    7. Christopher Isike & Alice Ajeh, 2017. "Stakeholder Engagement as a Core Management Function: Analysing the Business Value of Stakeholder Engagement for Nigerian Business Organizations," Journal of Economics and Behavioral Studies, AMH International, vol. 9(1), pages 46-55.
    8. 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.

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