Abstract

This paper investigates the relationship between Stakeholder Engagement (SE) and Corporate Social Responsibility (CSR), approaching CSR as a complex system made up of components and interactions. Adopting a System Thinking approach to analyze CSR in a stakeholders-company network, explorative research is conducted through three stages: (1) a critical literature review aimed to identify the components of the CSR system model, (2) the development of the dataset and of the Causal Loop Diagram (CLD) model, (3) the analysis of the CSR behavior in light of the ‘system archetypes’ underpinning the system. The analysis reveals both the structure and the dynamics of CSR and explain its behavior in light of the stakeholder engagement network variables. Findings from this research underscore the existence of six feedback loops, which characterize the relation CSR-SE. The ‘company-stakeholder fit’ acts as a growth engine for the stakeholder engagement network, however other balancing dynamics (e.g., detriment of business objectives) require a tradeoff between Social and Business orientation. This paper contributes to a more profound understanding of the relation between CSR and stakeholder engagement, showing in particular the link between CSR and SE under the assumption of stakeholder-company network. The insights provided serve as a guide for managers and policymakers to navigate the complex dynamics of SE to inform effective strategies of CSR based on network structural actions.