Do Stakeholder Orientation and Environmental Proactivity Impact Firm Profitability?

Franck Brulhart (), Sandrine Gherra and Bertrand Quelin

No 1241, HEC Research Papers Series from HEC Paris

Abstract: The impact of socially responsible corporate behavior on economic performance is a major preoccupation of managers today. This article explores the links between narrowly defined constructs: stakeholder orientation, environmental proactivity and profitability, from the perspectives of stakeholder theory and resource-based theory. We collected data on the food and beverage, and household and personal products, industries. Using structural equation modeling, this paper makes two contributions. We found a negative link between companies simply having a higher stakeholder orientation and profitability. Importantly, however, environmental proactivity not only had a positive impact on profitability, but also appeared to mediate the relationship between stakeholder orientation and profitability. In other words, if a company is more environmentally proactive, it will be more attentive to a broad array of stakeholders, and this will in turn contribute positively to profitability.

Keywords: environmental proactivity; firm profitability; resource-based theory; stakeholder theory; stakeholder orientation (search for similar items in EconPapers)
JEL-codes: L10 (search for similar items in EconPapers)
Pages: 43 pages
Date: 2017-11-28
New Economics Papers: this item is included in nep-env
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Citations: View citations in EconPapers (3)

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Related works:
Journal Article: Do Stakeholder Orientation and Environmental Proactivity Impact Firm Profitability? (2019)
Working Paper: Do Stakeholder Orientation and Environmental Proactivity Impact Firm Profitability? (2019)
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Persistent link: https://EconPapers.repec.org/RePEc:ebg:heccah:1241

DOI: 10.2139/ssrn.3078850

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