Innovative Stakeholder Relations

Business Ethics Quarterly 16 (1):43-68 (2006)
Business ethicists are eager to connect the ethical treatment of stakeholders with financial rewards. However, little attention hasbeen paid to the cultural and industry context that influences how stakeholders are regarded by the firm, and how innovative strategiesfor engaging stakeholders can help a firm outperform its competitors. By reconnecting stakeholder theory to its roots in the field of strategy, we provide a framework for understanding the dynamic interplay between stakeholder relationships, innovation, and competitive advantage. The result is a set of testable propositions aimed at better characterizing when and how “ethics pays” (Paine 2003)
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DOI 10.5840/beq20061612
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