How stakeholder-management can support financial and social performance

Abstract

Organizations have conflicting stakeholder-expectations; they are increasingly expected to engage in social practices, but have to remain profitable at the same time. It is a challenge for organizations to comply to both sides of expectation at the same time. The research-question this study therefore aims to answer is: “How does stakeholder-management support the CSPCFP link for Dutch organizations in the logistic sector?” To answer this research question two organizations within the logistic sector have been investigated in a qualitative study-design. The most important stakeholders for the organizations in the logistic sector are the ones that support them in creating financial value; customers, members, suppliers and shareholders of the organization. In order to guarantee the best possible outcomes from the relations with these stakeholders, the organizations attempt to seek long-term relationships. Having sustained relationships with stakeholders help the organization in creating both commercial and operational value, which can both support the organization in creating financial value. Along with benefits for financial value, stakeholderrelations also bring contributions to the organization’s social performance; the organization engages in social practices in order to manage stakeholder-expectations and by the continuous improvement of organizational processes in collaboration with stakeholders. To conclude; stakeholder-relations encourage the organization in the logistic to invest in social practices by attaching financial value to these practices. In order to achieve the best outcome of its stakeholder-relations the organization should seek stakeholder-relations that contribute to long-term benefits, and attempt to continuously improve these relations to secure potential benefits on the short-term