Stakeholder Engagement and Shared Vision for Social Performance

A statement of corporate purpose signifying that corporations are responsible for providing economic benefits to all stakeholders (not just shareholders) was signed by CEOs of more than 180 largest firms of US in 2019. Although stakeholder and Institutional theories explain that continuous participation from internal and external stakeholder and Stakeholder Pressure effect firm’s sustainability, the marketing literature primarily focuses on customer engagement and shareholder’ involvement. This study explores how Stakeholder Engagement, Stakeholder Pressure, and a shared organizational vision influence the Social Performance of the FMCG sector. Data was collected from marketing managers, corporate social responsibility managers, and sustainability directors by using random sampling, representing a sample size of 210 respondents. The findings reveal that actively engaging stakeholders significantly boosts firms’ ability to deliver positive social outcomes. However, the study also shows that excessive pressure from stakeholders can reduce this positive effect, as it may shift the organization’s focus from long-term social impact. Having a shared sustainable vision is an integral enabler to bring Social Performance with the right Stakeholder Engagement. These findings highlight the importance of strategic stakeholder management and offer practical guidance for decision makers and policymakers of the FMCG sector.