Stakeholder Engagement: Beyond the Myth of Corporate Responsibility

Stakeholder Engagement: Beyond the Myth of Corporate Responsibility

2007 | Michelle Greenwood
The article "Stakeholder Engagement: Beyond the Myth of Corporate Responsibility" by Michelle Greenwood aims to challenge the common assumption that stakeholder engagement is inherently a responsible practice. Traditionally, stakeholder engagement is seen as a form of corporate responsibility, with the belief that more engagement equates to greater responsibility. However, Greenwood argues that this "more is better" view oversimplifies the complex relationship between engagement and corporate responsibility. She suggests that stakeholder engagement can be understood in various ways and from different theoretical perspectives, and it may or may not involve a moral dimension, making it a morally neutral practice. The article explores the literature on social reporting and human resource management to critique the simplistic "more is better" theme. It delves into the construct of stakeholder engagement, highlighting its multifaceted nature and the varying interpretations it can have. Greenwood clarifies the responsible treatment of stakeholders, addressing issues such as stakeholder identification and conflicting claims. She proposes a model that reflects the complex interaction between stakeholder engagement and corporate responsibility, allowing for the possibility of corporate irresponsibility. The article also examines the role of employees as primary stakeholders, emphasizing their high power and legitimacy. High-road human resource management practices, which aim to engage and empower employees, are discussed, but Greenwood argues that engaging with employees does not necessarily make an organization more responsible. The article concludes by advocating for a more nuanced understanding of stakeholder engagement and its relationship with corporate responsibility.The article "Stakeholder Engagement: Beyond the Myth of Corporate Responsibility" by Michelle Greenwood aims to challenge the common assumption that stakeholder engagement is inherently a responsible practice. Traditionally, stakeholder engagement is seen as a form of corporate responsibility, with the belief that more engagement equates to greater responsibility. However, Greenwood argues that this "more is better" view oversimplifies the complex relationship between engagement and corporate responsibility. She suggests that stakeholder engagement can be understood in various ways and from different theoretical perspectives, and it may or may not involve a moral dimension, making it a morally neutral practice. The article explores the literature on social reporting and human resource management to critique the simplistic "more is better" theme. It delves into the construct of stakeholder engagement, highlighting its multifaceted nature and the varying interpretations it can have. Greenwood clarifies the responsible treatment of stakeholders, addressing issues such as stakeholder identification and conflicting claims. She proposes a model that reflects the complex interaction between stakeholder engagement and corporate responsibility, allowing for the possibility of corporate irresponsibility. The article also examines the role of employees as primary stakeholders, emphasizing their high power and legitimacy. High-road human resource management practices, which aim to engage and empower employees, are discussed, but Greenwood argues that engaging with employees does not necessarily make an organization more responsible. The article concludes by advocating for a more nuanced understanding of stakeholder engagement and its relationship with corporate responsibility.
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[slides and audio] Stakeholder Engagement%3A Beyond %0Athe Myth of Corporate Responsibility