The Power of Interactions. Exploring Stakeholder Adoption of pro-social practices from purpose-driven companies

The management literature has recently focused on reimagining capitalism through the lens of corporate purpose. Although many scholars have theoretically conceptualised this discourse and its connection to stakeholder theory, empirical studies are needed to further contribute to this ongoing debate. As society demands greater responsibility and ethical conduct, understanding stakeholder engagement with purpose-driven companies is crucial. This qualitative research aims to explore the complex relationship between purpose-driven companies and their stakeholders. The study focuses on understanding the various factors that influence stakeholder adoption of pro-social practices promoted by purpose-driven companies and the interaction mechanisms through which this adoption takes place. We are obtaining these insights from an extensive data collection that included 30 semi-structured interviews with key stakeholders, three participant observations, and a meticulous analysis of secondary data, such as organizational documents, industry reports, and existing literature. The preliminary findings of our study shed light on several key factors and ways that characterize the adoption of pro-social practices by stakeholders. These factors include organizational culture, leadership support, communication strategies, and the perceived alignment with stakeholder values. Our research highlights also the importance of fostering collaborative relationships between purpose-driven through both formal and informal interaction mechanisms. Formal mechanisms include structured stakeholder engagement processes; on the other hand, formal mechanisms involve structured interactions, which establish clear expectations and obligations between companies and stakeholders. We aim to contribute to both theoretical advancement and practical implications for stakeholder theory and the literature on corporate purpose. Our analysis aims to reveal how purpose-driven companies can engage with stakeholders to achieve shared purposes and create positive social change. Purpose-driven companies can contribute to the common good by fostering transparency, accountability, and trust. Ongoing dialogue and collaboration between companies and their stakeholders are necessary to ensure alignment with evolving societal expectations and values. Ultimately, fostering a mutual relationship between purpose-driven companies and their stakeholders can pave the way for the adoption of pro-social practices and driving positive societal impact.