A Practice Approach to Modelling Stakeholder Attributes and Their Dynamic Behaviour

61 Pages Posted: 7 Mar 2016

See all articles by Panagiotis Andrikopoulos

Panagiotis Andrikopoulos

Centre for Financial and Corporate Integrity (CFCI), Coventry University

Nick Webber

University of Warwick - Warwick Business School

Date Written: December 17, 2014

Abstract

We describe a unifying theoretical framework for stakeholder analysis, establishing a rigorous mathematical formulation that can be used to frame both qualitative and quantitative research. Stakeholders are modeled as interactive practices; legitimacy arises through a projection mechanism. Five attributes contributing to stakeholder salience emerge from the framework.

Three are identified with power, legitimacy, and urgency, well known from classical stakeholder theory; the remaining two represent resistance to change within an organization. Individuals seek to maximize esteem while minimizing pressure. A novel mechanism transforms wealth into esteem; wealth forms only part of an individual' total utility. The key idea, that of a personal practice, is presented and discussed. The paper suggests general accounting proxies for the five attributes in a generic firm and its stakeholders and draws a number of a policy implications.

Keywords: stakeholder theory, dynamics modelling, interactive practices, isomorphism, legitimacy

JEL Classification: D21, D60, D71, L21

Suggested Citation

Andrikopoulos, Panagiotis and Webber, Nick, A Practice Approach to Modelling Stakeholder Attributes and Their Dynamic Behaviour (December 17, 2014). Available at SSRN: https://ssrn.com/abstract=2742712 or http://dx.doi.org/10.2139/ssrn.2742712

Panagiotis Andrikopoulos (Contact Author)

Centre for Financial and Corporate Integrity (CFCI), Coventry University ( email )

Priory Street
Coventry, CV1 5FB
United Kingdom
+44(0)247 765 7920 (Phone)

Nick Webber

University of Warwick - Warwick Business School ( email )

Coventry CV4 7AL
United Kingdom
+(44) 24 7652 4664 (Phone)

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