Abstract*

We analyze how stakeholders such as investors, customers, managers, and employees affect organizations when they are pro-social. Our findings challenge the notion that pro-social stakeholders necessarily benefit organizations’ sustainability. Instead, we demonstrate that conflicts of interest arising from differences in stakeholders’ prosocial
preferences can result in pro-social stakeholders losing control rights and influence, which ultimately harms organizations’ sustainability. Our results shed light on recent trends in stakeholder engagement and provide conditions under which pro-social stakeholders benefit or harm organizations’ sustainability.

*Co-authored with Th. Geelen (Copenhagen Business School) and J. Hajda (HEC Montréal).

General information

This will be a hybrid seminar. If you are interested in joining this seminar, please send an email to the secretariat of the Finance Group at Amsterdam Business School at finsec-abs@uva.nl.