Corporate Citizenship and Stakeholder Engagement : Maintaining an Equitable Power Balance

Abstract

This paper proposes an engagement oriented corporation-stakeholder relationship in Corporate Social Responsibility (CSR) programmes. It is a proposition which poses the two connected questions of how to move from solely public relation driven stakeholder management to social development oriented stakeholder participation (engagement) and how Stakeholder Engagement can be measured. On the backdrop of Arnstein’s (1969) citizenship participation model and reasons for Stakeholder Engagement framework, the paper argues that Stakeholder Engagement is attainable and measurable. It argues that though Arnstein’s citizenship participation model was originally intended for the relationship between government and local communities, the ever rising power of corporations makes the principle adaptable and transferable to corporate-stakeholder relationship. It proposes that by placing the reasons for stakeholder participation against levels of participation it will be possible to develop an inclusive Stakeholder Engagement model, render Stakeholder Engagement measurable and contribute in laying a foundation for developing a proactive approach to sustainable CSR that positively benefits both the company and society.