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Stakeholder‐Centric Governance and Corporate Social Performance: A Cross‐National Study
Author(s) -
Shahzad Ali M.,
Rutherford Matthew A.,
Sharfman Mark P.
Publication year - 2015
Publication title -
corporate social responsibility and environmental management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.519
H-Index - 73
eISSN - 1535-3966
pISSN - 1535-3958
DOI - 10.1002/csr.1368
Subject(s) - stakeholder , corporate governance , business , stakeholder theory , shareholder , agency (philosophy) , accounting , principal–agent problem , perspective (graphical) , stakeholder engagement , corporate social responsibility , public relations , finance , political science , sociology , social science , computer science , artificial intelligence
Because prior research has largely adopted an agency theory perspective and focused extensive effort on examining shareholder‐centric corporate governance mechanisms and their outcomes for shareholders or select groups of stakeholders, relatively little work has focused on whether governance structures can maximize outcomes for all stakeholders. We adopt an integrated, stakeholder‐agency theory perspective to explore a set of corporate governance mechanisms that potentially can help firms generate greater engagement with a broad array of stakeholders. We test the relationship between stakeholder‐centric governance and corporate social performance using a sample of 342 firms in 24 countries over four years and find that certain corporate governance mechanisms can indeed be construed as ‘stakeholder‐centric’ as they positively impact corporate social performance. Copyright © 2015 John Wiley & Sons, Ltd and ERP Environment