Stakeholder Influence Capacity and the Variability of Financial Returns to Corporate Social Responsibility

  title={Stakeholder Influence Capacity and the Variability of Financial Returns to Corporate Social Responsibility},
  author={Michael L. Barnett},
  journal={Corporate Social Responsibility (CSR) eJournal},
  • Michael L. Barnett
  • Published 1 July 2005
  • Business, Economics
  • Corporate Social Responsibility (CSR) eJournal
Should corporations serve as agents of social change? For more than 30 years, scholars have attempted to make a "business case" that demonstrates that corporations should because they can earn positive financial returns from social responsibility. However, the business case remains unproven. This paper argues that research on the business case must account for the path dependent nature of firm-stakeholder relations, and develops the construct of stakeholder influence capacity (SIC) to fill this… 

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