- Title
- Broad or Narrow Stakeholder Management? A Signaling Theory Perspective
- Creator
- Fu, Limin; Boehe, Dirk M.; Orlitzky, Marc O.
- Relation
- Business & Society Vol. (In Press)
- Publisher Link
- http://dx.doi.org/10.1177/00076503211053018
- Publisher
- Sage Publications
- Resource Type
- journal article
- Date
- 2021
- Description
- To mitigate risk, should companies signal a broad range of environmental, social, and governance (ESG) initiatives or instead focus on only a few ESG issues? Drawing on signaling theory, we propose that a broad array of ESG initiatives generates not only signal consistency but also accelerating signal costs. Our empirical results support the resultant hypothesis of a curvilinear relationship between ESG scope and equity risk. In addition, this U-shaped curve seems to become steeper when firms face multiple media-reported ESG controversies. Overall, our study qualifies the conventional wisdom that firms can reduce equity risk by attending to a wide variety of stakeholders and highlights the moderating (signal-amplifying) impact of the firm’s media environment. [Final citation details to be advised.]
- Subject
- corporate social performance (CSP); corporate social responsibility (CSR),; environmental, social and governance (ESG) performance; signaling theory; stakeholder management; SDG 4; SDG 12; Sustainable Development Goals
- Identifier
- http://hdl.handle.net/1959.13/1445201
- Identifier
- uon:42529
- Identifier
- ISSN:0007-6503
- Language
- eng
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