With limited resources and attention, managers have sought ways to categorize and prioritize stakeholders. The underlying assumption is that some stakeholders matter more than others. However, in the information age, stakeholders are increasingly interconnected, where a firm’s actions toward one stakeholder are visible to others and can affect members of the stakeholder ecosystem. Actions by a firm toward any of its stakeholders can signal its trustworthiness and determine to what degree other stakeholders will assume vulnerability and engage in future exchange (...) relationships. In this conceptual article, I present a model of stakeholder connectedness and describe the conditions in which a firm’s actions toward one stakeholder can build or erode trust across stakeholders. This work contributes to current tensions in stakeholder theory by elucidating how the treatment of a single stakeholder, or a narrow group of stakeholders, can have cascading effects on a broader group of stakeholders. (shrink)

Recently, scholars have argued that disclosure of personal information is an effective mechanism for building high-quality relationships. However, personal information can focus attention on differences in demographically diverse teams. In an experiment using 37 undergraduate teams, we examine how sharing personal information by ethnically similar and ethnically distinct newcomers to a team affects team perceptions, performance, and behavior. Our findings indicate that the disclosure of personal information by ethnically distinct newcomers improves team performance. However, the positive impact on team performance (...) comes at a cost to the newcomers, who are perceived as less competent by others and experience heightened social discomfort in team interactions. Ironically, what benefits the ethnically diverse team may undermine its ethnically distinct members. This study highlights how the management of diversity may sometimes require making trade-offs between individual interests and those of the team. (shrink)

In a fast-paced and interconnected global economy, a crisis is an eventuality for most organizations. Leading during a crisis can be particularly challenging because a crisis can disrupt a firm’s purpose, undermine the motivation of employees, and can encourage unethical behavior. In this article, I focus on managing a crisis of purpose. I articulate a framework that elaborates ways in which leaders find and pursue ethical purposes during times of crisis and why these specific purposes motivate employees and encourage organizational (...) resilience. Drawing on modern scholars’ theory of eudaimonia, I propose that leaders can find ethical purposes by framing crisis as opportunities for growth, authenticity, meaning and excellence. When leaders establish and pursue ethical purposes, they can motivate individuals and promote organizational resilience. (shrink)