Meeting Stakeholder Needs: Who Should Managers Pay Close Attention To? Evidence from Listed Chinese Manufacturing Companies

Journal article


Oino, I. and Yekini, L. 2024. Meeting Stakeholder Needs: Who Should Managers Pay Close Attention To? Evidence from Listed Chinese Manufacturing Companies. Sustainability. 16 (9), pp. 1-19. https://doi.org/10.3390/su16093806
AuthorsOino, I. and Yekini, L.
Abstract

Meeting the needs of stakeholders, as an element of CSR, requires a delicate balance of meeting these needs and ensuring profitability. Guided by the legitimacy theory and the stakeholder theory, this paper assesses the significance of meeting stakeholder needs and examines the types of stakeholders that managers pay close attention to. Using a fixed-effects model on 859 Chinese manufacturing firms and a regression analysis, the results show a positive link between corporate social responsibility (CSR) activities and organisational financial performance via both accounting and market measures in the Chinese manufacturing market. Furthermore, the primary objective of companies is to maximise shareholder returns while also meeting societal needs. The results also indicate that responsibility to shareholders and employees and growth potential have significant positive impacts on a company’s market value. This research demonstrates the need for companies to engage in CSR activities, as this can establish an elevated level of financial performance. Furthermore, attention needs to be paid to other stakeholders in corporate CSR activities to engage them and sustain their commitments towards an organisation’s productivity, growth, and sustainability. This is the first study to examine the power of influence from different stakeholders using legitimacy theory. Secondly, it is the first study to evaluate this influence using the Chinese manufacturing industry, which is, arguably, one of the largest in its field.

Keywordsperformance; corporate; social; responsibility; stakeholders; firms
Year2024
JournalSustainability
Journal citation16 (9), pp. 1-19
PublisherMDPI
ISSN 2071-1050
Digital Object Identifier (DOI)https://doi.org/10.3390/su16093806
Web address (URL)https://www.mdpi.com/2071-1050/16/9/3806
Publisher's version
License
File Access Level
Open
Output statusPublished
Publication dates
Online01 May 2024
Publication process dates
Deposited26 Jun 2024
Permalink -

https://repository.derby.ac.uk/item/q7063/meeting-stakeholder-needs-who-should-managers-pay-close-attention-to-evidence-from-listed-chinese-manufacturing-companies

Download files


Publisher's version
sustainability-16-03806.pdf
License: CC BY 4.0
File access level: Open

  • 12
    total views
  • 4
    total downloads
  • 0
    views this month
  • 0
    downloads this month

Export as

Related outputs

Future Opportunities for Port City Development: A Reciprocal Evaluationfor Competitive Advantage for Malaysian Seaports
Zain, R.M., Jeevan, J., Salleh, N.H.M., Ngah, A.H., Ramli, A., Zain, M.Z.M., Yekini, L. and Dirie, A.N 2024. Future Opportunities for Port City Development: A Reciprocal Evaluationfor Competitive Advantage for Malaysian Seaports. Journal of Maritime Research . 21 (1), pp. 1-18.
Strategic Leadership and Firm Performance: The Mediating Role of Ambidexterity in Professional Services SMEs
Ambilichu, C., Omoteso, K. and Liafisu Sina 2022. Strategic Leadership and Firm Performance: The Mediating Role of Ambidexterity in Professional Services SMEs. European Management Review. pp. 1-19. https://doi.org/https://doi.org/10.1111/emre.12548
NGO accountability on environmentalism: a literature review of relevant issues and themes
Yekini, Liafisu Sina and Yekini, Kemi, C 2021. NGO accountability on environmentalism: a literature review of relevant issues and themes. in: Emerald Publishing.
Audit committee and audit quality: An empirical analysis considering industry expertise, legal expertise and gender diversity
Alhababsah, Salem and Yekini, Liafisu Sina 2021. Audit committee and audit quality: An empirical analysis considering industry expertise, legal expertise and gender diversity. Journal of International Accounting, Auditing and Taxation. 42, pp. 1-17. https://doi.org/10.1016/j.intaccaudtax.2021.100377
The determinants of CEO turnover: evidence from French listed companies
Boussaada, R, Yekini, Liafisu Sina and Makhlouf, M 2018. The determinants of CEO turnover: evidence from French listed companies. Research in Management Science. https://doi.org/10.3917/resg.129.0029
Corporate social responsibility performance and tax aggressiveness
Chijoke-Mgbame, M.A, Yekini, Liafisu Sina, Kemi, Y.C and Mgbame, C.O 2017. Corporate social responsibility performance and tax aggressiveness. Journal of Accounting and Taxation. https://doi.org/10.5897/JAT2017.0266
Examination of information load following IFRS adoption in an emerging market: evidence from Nigeria.
Okwuosa I, Yekini, Liafisu Sina and Oyemade B 2017. Examination of information load following IFRS adoption in an emerging market: evidence from Nigeria. International Accounting and Finance Research Journal.
The impact of mergers and acquisitions on shareholders’ wealth: evidence from Nigeria
Abeleje, R and Yekini, Liafisu Sina 2014. The impact of mergers and acquisitions on shareholders’ wealth: evidence from Nigeria. The Scottish Journal of Arts, Social Sciences and Scientific Studies.
Investigating the link between CSR and Financial Performance – Evidence from Vietnamese Listed Companies
Ho Ngoc, T.T and Yekini, Liafisu Sina 2014. Investigating the link between CSR and Financial Performance – Evidence from Vietnamese Listed Companies. British Journal of Arts and Social Sciences.
Impact of board independence on the quality of community disclosures in annual reports.
Yekini, K.C, Adelopo, I, Andrikopoulos, P and Yekini, Liafisu Sina 2019. Impact of board independence on the quality of community disclosures in annual reports. The Accounting Forum. https://doi.org/10.1016/j.accfor.2015.05.004
An Evaluation of Management Perspectives of Sustainability Reporting In The Nigerian Oil Industry.
Uzonwanne, G, Yekini, K, Yekini, Liafisu Sina and tobo, P 2014. An Evaluation of Management Perspectives of Sustainability Reporting In The Nigerian Oil Industry. Journal of Management and Sustainability. https://doi.org/10.5539/jms.v4n2p70
Psychopathic traits of corporate leadership as predictors of future stock returns
Wisniewski, Tomasz Piotr, Yekini, Liafisu Sina and Omar, Ayman 2019. Psychopathic traits of corporate leadership as predictors of future stock returns. European Financial Management. https://doi.org/10.2139/ssrn.2984999
Stock market returns and the content of annual report narratives.
Yekini, Liafisu Sina and Wisniewski, Tomasz 2015. Stock market returns and the content of annual report narratives. Accounting Forum. https://doi.org/10.1016/j.accfor.2015.09.001
Market reaction to the positiveness of annual report narratives
Yekini, Liafisu Sina, Wisniewski, Tomasz Piotr and Millo, Yuval 2015. Market reaction to the positiveness of annual report narratives. The British Accounting Review. 48 (4), pp. 415-430. https://doi.org/10.1016/j.bar.2015.12.001