Università degli Studi di Verona

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1 Università degli Studi di Verona Sara Moggi PhD, Research Fellow Business Department University of Verona Bergamo, 4 th December

2 any group or individual who can affect or is affected by the achievement of the organization s objectives (Freeman 184:46) Persons, groups, neighborhoods, organizations, institutions and even the natural environment are generally thought as potential stakeholders (Mitchell et al. 1997, p.855) 2

3 Political, Economical, Social System POLITICAL ECONOMY THEORY Common Values of the hosting system LEGITIMACY THEORY Stakeholders STAKEHOLDER THEORY 3

4 Stakeholder salienceis the degreeto which managers give priorityto competing stakeholder claims It goes beyond the question of stakeholder identification, because the dynamicsinherent in each relationship involve complex considerations that are not readily explained by the stakeholder framework as it currently stands. -actual -potential -involountary 4

5 1) Stakeholder POWERto influence the organization 2) The LEGITIMACYof the stakeholder s relationship with the organization 3) The URGENCYof the stakeholder s claim on the organization >>> DYNAMIC MODEL<<< 5

6 1) POWER 1) 2) LEGITIMACY 3) URGENCY The power is "the probability that one actor within a social relationship would be in a position to carry out his own will despite resistance" (Weber, 1947). '[it is] the ability of those who possess power to bring about the outcomes they desire' " (Salancik & Pfeffer, 1974: 3) - Coercive power= based on the physical resources of force - Utilitarian power= based on material or financial resources - Normative power= based on symbolic resources 6

7 1) POWER 2) LEGITIMACY 3) URGENCY Legitimacyis "a generalized perception or assumption that the actions of an entity are desirable, proper, or appropriate within some socially constructed system of norms, values, beliefs, and definitions" (Suchman,1995: 574). Legitimacy is a desirable social good 7

8 Urgency is "a call for immediate attention" Urgency exists only when two conditions are met: (1) when a relationship or claim is of a timesensitive nature; (2) when that relationship or claim is important or critical to the stakeholder. 1) POWER 2) LEGITIMACY 3) URGENCY Urgency is based on the following two attributes: (1) Time sensitivity= the degree to which managerial delay in attending to the claim or relationship is unacceptable to the stakeholder (2) Criticality = the importance of the claim or the relationship to the stakeholder. 8

9 Model based on 3 assumptions: 1. Managers that want to achieve a defined goal, consider the different stakeholder classes 2. Managers perception dictate stakeholders salience 3. Stakeholder are classified on the evaluation of the three attributes 9

10 Political, Economical, Social System POLITICAL ECONOMY THEORY Common Values of the hosting system LEGITIMACY THEORY Stakeholders STAKEHOLDER THEORY 10

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12 AIM: Study on the role of social and environmental reporting in at universities CONTEXT: This study is a part of wider research - National Group of interest on Social Accounting in Universities 12

13 Among 96 Universities, 26 have a SER ( 27% ) KIND OF REPORTS 13

14 University YEAR Libera Università di BOLZANO 2010 Scuola Normale Superiore di PISA 2004/2006 Scuola Superiore di Studi Universitari e Perf. S.Anna di PISA 2002/ /2004 Università Cà Foscari VENEZIA Università degli Studi del MOLISE 2011 Università degli Studi del SALENTO 2009/2010 Università degli Studi del SANNIO di BENEVENTO Università degli Studi di BARI ALDO MORO Università degli Studi di CAGLIARI Università degli Studi di CASSINO e del LAZIO MERID Università degli Studi di FERRARA Università degli Studi di FIRENZE 2006 Università degli Studi di MACERATA Università degli Studi di PAVIA 2010 Università degli Studi di Roma la Sapienza 2010 Università degli Studi di SALERNO Università degli Studi di TRIESTE Università degli Studi INSUBRIA Varese-Como

15 Multiple case studies SER presence Best practicein term YES NO of SER and sustainable practices Polar cases Attention to USR YES NO University D University E University F University G University C University H University A University B 8 Universities (1private) 16 semi-structured interviews and 1 focus group key informants: rectors/vicechancellors, students representative and employees involved in the process 15

16 The managementcould used SER to gain legitimacy, in terms of the social contract (Shocker and Sethi, 1973) between students local community (main stakeholders declared during the interviews) and Universities. SER emerged to reach or support this legitimacy (Deegan and Blomquist, 2006), but legitimacy in not enough In fact the influence of the other attributes change underlined how different stakeholders can changethe role of SER 16

17 After the first period of introduction (usually after the first year) the SER change its role! The role depends on the real usersof the tool that are the real salience of stakeholders in university The SER assumes different roles driven by the powerful stakeholder needs (various social contracts) (Neu et al., 1998), that are the real users of the tool. On the contrary, if it is notperceived as something useful, the process is no longer implemented or another tool is used 17

18 If the powerful stakeholders are employees, SER become an important tool for the organization identity; that could be hampered by this subject if the process increases the red tape If the powerful stakeholder is the board (board of directors or senate), SER becomes the central instrument for the measurement system and also for planning and control. Important tool for the definition of the long term strategies. If the powerful stakeholders is the main funds supporter (e.g. in a private university), this requires this kind of reporting for obtaining a clearer idea of the resources used. 18

19 SER in universities assume different roles in different periods and it depends on the stakeholders salience. So Universities starting this path may to take into consideration the three dimensions of salience for each stakeholder Also the definition of a new standardfor SER in higher education should permit the flexible role of this tool. Future research: how the environment and the context influence the kind of powerful stakeholder and consequently the role of SER?; what would happen in other organizations that have also a social utility? 19

20 Map the stakeholder groups Consider the dimension of salience Identify the tool for a dialog with stakeholders 20

21 Università degli Studi di Verona References Mitchell, Ronald K., Bradley R. Agle, and Donna J. Wood. "Toward a theory of stakeholder identification and salience: Defining the principle of who and what really counts." Academy of management review 22.4 (1997): Suchman, Mark C. "Managing legitimacy: Strategic and institutional approaches." Academy of management review 20.3 (1995): Sara Moggi, PhD, Research Fellow Department of Business Administration University of Verona Italy sara.moggi@univr.it Mobile: