Why the Business Case Won't Save the World
Chapter 10: Why Stakeholders Ignore Firm Misconduct: A Cognitive View
This article explains inconsistency in stakeholder punishment for firm misconduct. It does so by developing a cognitive view of the process by which stakeholders allocate their limited attention. This cognitive view outlines individual and situational factors that produce variation in a stakeholder’s likelihood of noticing that an act of misconduct has occurred, in how the stakeholder will assess misconduct if he or she does notice it, and in the stakeholder’s decision to punish a firm if he or she judges it to have engaged in misconduct.
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