IDEAS home Printed from https://ideas.repec.org/a/cup/buetqu/v27y2017i01p71-98_00.html
   My bibliography  Save this article

Political Stakeholder Theory: The State, Legitimacy, and the Ethics of Microfinance in Emerging Economies

Author

Listed:
  • Olsen, Tricia D.

Abstract

How does the state influence stakeholder legitimacy? And how does this process affect an industry’s ethical challenges? Stakeholder theory adopts a forward-looking perspective and seeks to understand how managers can address stakeholders’ claims to improve the firm’s ability to create value. Yet, existing work does not adequately address the role of the state in defining the stakeholder universe nor the implications this may have for subsequent ethical challenges managers face. This article develops a political stakeholder theory (political ST) by weaving together the political economy, stakeholder theory, and legitimacy literatures. Political ST shows how state policies influence stakeholder legitimacy and, in turn, affect an industry’s ethical challenges. This article integrates the concept of agonism to address the perennial tension between markets and states and its implications for firms and their managers. Political ST is then applied to the case of microfinance, followed by a discussion of the contributions of this approach.

Suggested Citation

  • Olsen, Tricia D., 2017. "Political Stakeholder Theory: The State, Legitimacy, and the Ethics of Microfinance in Emerging Economies," Business Ethics Quarterly, Cambridge University Press, vol. 27(1), pages 71-98, January.
    • Handle: RePEc:cup:buetqu:v:27:y:2017:i:01:p:71-98_00
    as

    Download full text from publisher

    File URL: https://www.cambridge.org/core/product/identifier/S1052150X16000592/type/journal_article
    File Function: link to article abstract page
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Susana C. Esper & Luciano Barin-Cruz & Jean-Pascal Gond, 2024. "Engaging Stakeholders During Intergovernmental Conflict: How Political Attributions Shape Stakeholder Engagement," Journal of Business Ethics, Springer, vol. 191(1), pages 1-27, April.
    2. Dang, Quyen Thao & Jasovska, Pavlina & Rammal, Hussain Gulzar, 2020. "International business-government relations: The risk management strategies of MNEs in emerging economies," Journal of World Business, Elsevier, vol. 55(1).
    3. Enrico Bellazzecca & Olga Biosca, 2022. "Intended and unintended effects of specialized regulation on microfinance institutions’ double‐bottom line management," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 93(4), pages 977-999, December.
    4. Sahibzada, Irfan Ullah & Rizwan, Muhammad Suhail & Qureshi, Anum, 2022. "Impact of sovereign credit ratings on systemic risk and the moderating role of regulatory reforms: An international investigation," Journal of Banking & Finance, Elsevier, vol. 145(C).
    5. Qian, Wei & Parker, Lee & Zhu, Jingyu, 2024. "Corporate environmental reporting in the China context: The interplay of stakeholder salience, socialist ideology and state power," The British Accounting Review, Elsevier, vol. 56(1).
    6. Tricia D. Olsen & Laura Bernal-Bermúdez, 2024. "Uncovering Economic Complicity: Explaining State-Led Human Rights Abuses in the Corporate Context," Journal of Business Ethics, Springer, vol. 189(1), pages 35-54, January.
    7. K. P. Saraswathy Amma & Gopalakrishnan Kannan & Lakshmi Parthasarathy, 2019. "Do regulations and governance quality impact performance of MFIs in India?," DECISION: Official Journal of the Indian Institute of Management Calcutta, Springer;Indian Institute of Management Calcutta, vol. 46(1), pages 3-14, March.
    8. Tricia D. Olsen & Harry J. Van Buren, 2024. "Agonistic Respect and the Ethics of Employment Relationships," Journal of Business Ethics, Springer, vol. 193(2), pages 271-284, August.
    9. Dingzu Zhang & Luqi Liu, 2022. "Does ESG Performance Enhance Financial Flexibility? Evidence from China," Sustainability, MDPI, vol. 14(18), pages 1-22, September.
    10. Marek Hudon & Marc Labie & Patrick Reichert, 2020. "What is a Fair Level of Profit for Social Enterprise? Insights from Microfinance," Journal of Business Ethics, Springer, vol. 162(3), pages 627-644, March.
    11. Henry Adobor, 2023. "Contested concept, competing narratives, and coercive policy intervention: A study of government intervention in the illegal artisanal mining sector in Ghana," Journal of International Development, John Wiley & Sons, Ltd., vol. 35(7), pages 1814-1832, October.
    12. Dawood Ashraf & Muhammad Suhail Rizwan & Barbara L’Huillier, 2022. "Environmental, social, and governance integration: the case of microfinance institutions," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 62(1), pages 837-891, March.
    13. Mark Anthony Camilleri, 2017. "Corporate sustainability and responsibility: creating value for business, society and the environment," Asian Journal of Sustainability and Social Responsibility, Springer, vol. 2(1), pages 59-74, September.
    14. Benites-Lazaro, L.L. & Mello-Théry, N.A., 2019. "Empowering communities? Local stakeholders’ participation in the Clean Development Mechanism in Latin America," World Development, Elsevier, vol. 114(C), pages 254-266.
    15. Thabo Gerald Maleka & Gibson Nyirenda & Michael Bamidele Fakoya, 2017. "The Relationship between Waste Management Expenditure and Waste Reduction Targets on Selected JSE Companies," Sustainability, MDPI, vol. 9(9), pages 1-20, August.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cup:buetqu:v:27:y:2017:i:01:p:71-98_00. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Kirk Stebbing (email available below). General contact details of provider: https://www.cambridge.org/beq .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.