Using infomediaries to build effective networks between business and society

Abstract

Purpose

This paper sets out to present an innovative model for managing stakeholder relationships in the networked society.

Design/methodology/approach

In the proposed network model, socially‐responsible investment organizations (SRIOs) collaborate with corporations to enhance the flow of information through the network, providing a key focal point and filter for information to and from the various stakeholders of the corporation.

Findings

Illustrations show SRIOs becoming a catalyst towards best practices, emphasizing strategic options, monitoring functions, benchmarking peer firms, and providing stronger linkages to the global environment.

Research limitations/implications

The model is illustrated with anecdotal evidence.

Practical implications

Utilizing SRIOs as intermediaries in the relationship between businesses and their multiple stakeholders is attractive because SRIOs possess the capabilities and skills of experts and matchmakers. The implications of increased access to information and greater valuation of corporate social responsibility are projected as a result of the SRIOs' role as expert, driving greater accountability with increased access to information. It is also seen as a direct result of the SRIOs' role as matchmaker, providing more explicit valuation of corporate social responsibility.

Originality/value

In the global economy, the concept of “managing stakeholders” may be an anachronism. As the importance of corporate social responsibility grows, efforts to address corporations' social responsibilities are increasingly challenged by: the complexity of globalization; the immediacy of digital networks; and the blurring of organizational boundaries.

Citation

Johnson, V.E. and Brennan, L.L. (2007), "Using infomediaries to build effective networks between business and society", Corporate Governance, Vol. 7 No. 3, pp. 301-311. https://doi.org/10.1108/14720700710756571