Stakeholder Identification and Salience in Corporate Philanthropy: Strategic Management for Sustainability

Siti Sara Ibrahim, Abd Halim Mohd Noor, Roshayani Arshad, Mohd Ali Muhmmad Don

Abstract


The Corporate philanthropic (CP) efforts are considered to have very short-lived positive effects upon society. Involvement in corporate philanthropy activities is deemed vital to maintaining sustainability within a corporation as well the surrounding community. In fact, the government recently propagated sustainable socio-economic well-being as one of a national agenda through promoting a collaborative approach between the government, private organization and the social sector to address social disparities by looking at new ways of delivering social service for sustainability purposes. This strategic collaborative approach is known as “Social Private and Public Partnership” or SPPP in which is also an initiative under The National Blue Ocean Strategy (NBOS) as well translated under the 11th Malaysia Plan (RMK-11). However, it is important to ascertain which stakeholders deserve priority to best provide the long-term advantages of corporate philanthropy in a sustainable manner. The current study has the purpose of contributing to the approaches of stakeholder salience (involving attributes of urgency, power and legitimacy) and stakeholder identification in the model established by Mitchell to facilitate the identification and prioritization of stakeholders’ best suited to CP practices. Analysis reveals that; entities in community, NGOs or social societies, customer and employees are the key stakeholder of Islamic Financial Institution (IFIs). The findings of the current study are vital in subsequent studies related to stakeholder management study which focuses on firm-stakeholder relationship.


Keywords


Stakeholder Management, Power, Legitimacy, Urgency, Corporate Philanthropy, Sustainability

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References


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