Managing social risk through stakeholder partnership building : empirical descriptive process analysis of stakeholder partnerships from British Petroleum in Colombia and Hoechst in Germany for the management of social risk
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Abstract
This thesis sets out to provide a systematic study of stakeholder partnership building of BP in
Colombia and Hoechst in Germany in the context of social risk management. Each company
built an NGO and a community partnership that became an integral part of firms' strategy. In
examining and evaluating the two companies and the four stakeholder partnerships, the
leading research question of how firms build stakeholder partnerships is answered. The
present study seeks to identify the characteristics of stakeholder partnership building, as well
as to isolate the similarities and differences of this process. Additionally, it is an attempt to
define the features of the firms' social risk navigation as context of this research project.
The thesis is divided into four parts. The first part introduces the research phenomenon,
reviews conceptual foundations, and elaborates methodological issues. The case studies of
BP and Hoechst are subdivided into internal processes of social integration and reintegration
with regard to the two companies, and external processes of partnership building with regard
to the four stakeholder partnerships that are chronologically presented in part two. Part three
conceptualises stakeholder partnership building in terms of navigating social risk and
partnership alchemy. Finally, part four comprises the research synopsis and reflection.
Business and society, stakeholder theory, and strategic relationships are the theoretical
areas that contributed to the framework for analysing partnership building. Two longitudinal
in-depth case studies provide qualitative data for the processual analysis. The empirical data
are categorised, aggregated and compared, in order to extract research findings.
The contribution of this research is the extension of behavioural stakeholder theory. It
develops is a stakeholder partnership building theory that comprises three parts. First, the 4-Ps of stakeholder partnership building are identified. Second, variables are isolated that
describe these elements of partnership alchemy. Finally, four patterns of stakeholder
partnership building are identified. As a result, the research presents four propositions for
partnership building. Based on the analysis of firms' navigation of social risk, a fifth
proposition distinguishes between firm-specific and partnership-specific partnership building.
The empirical data provides a contribution to knowledge in its own right by providing detailed
insight into the practice of social risk management through stakeholder partnership building