Joint Management-Stakeholder Committees: A New Path to Stakeholder Governance?

Corporate Governance: International Journal of Business in Society, Forthcoming

Posted: 16 Jun 2011 Last revised: 19 Jan 2018

See all articles by Heiko Spitzeck

Heiko Spitzeck

Fundação Dom Cabral

Erik G. Hansen

Johannes Kepler University (JKU) Linz

David Grayson

Cranfield University, School of Management, Doughy Centre for Corporate Responsibility

Date Written: 2011

Abstract

Purpose: This paper describes the emerging practice of Joint‐Management‐Stakeholder‐ Committees (JMSCs) in which corporate executives take decisions in collaboration with stakeholders.

Design/methodology/approach: To identify firms involving stakeholders in their governance arrangements, we analysed 51 companies regularly participating in the Business in the Community ́s Corporate Responsibility Index in the UK. We then analyzed the data provided by the index as well as corporate reports to evaluate the impact of JMSCs on corporate decisionmaking.

Findings: This research finds that JMSCs strongly influence corporate governance mechanisms such as monitoring, measurement as well as policy development of firms.

Research limitations/applications: Our analysis builds on corporate responses given to the questionnaire sent by the Corporate Responsibility Index as well as corporate reports. Future research is encouraged to triangulate findings with stakeholder opinions on the effectiveness of JMSCs.

Practical implications: JMSCs prove to be an effective tool to involve stakeholders in corporate decisionmaking processes. Due to their effectiveness JMSCs are more likely to create trust between firms and their stakeholders.

Originality/value: This paper is the first empirical investigation into the effectiveness of engaging stakeholders in Joint‐Management‐Stakeholder Committees, demonstrating the impact and effectiveness of such engagement.

Keywords: corporate responsibility, corporate governance, governance structures, stakeholder, stakeholder governance

JEL Classification: M14

Suggested Citation

Spitzeck, Heiko and Hansen, Erik G. and Grayson, David, Joint Management-Stakeholder Committees: A New Path to Stakeholder Governance? (2011). Corporate Governance: International Journal of Business in Society, Forthcoming. Available at SSRN: https://ssrn.com/abstract=1865196

Heiko Spitzeck (Contact Author)

Fundação Dom Cabral ( email )

Avenida Princesa Diana 760, Alphaville
Nova Lima, 34000000
Brazil
+551172769574 (Phone)

HOME PAGE: http://www.fdc.org.br

Erik G. Hansen

Johannes Kepler University (JKU) Linz ( email )

Linz
Austria

HOME PAGE: http://www.jku.at/iqd/content/e288348

David Grayson

Cranfield University, School of Management, Doughy Centre for Corporate Responsibility ( email )

Bedfordshire, MK43 0AL
United Kingdom

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