March 05, 2026
Understanding the Stakeholder Model of Corporate Social Responsibility
By James W. Sunday, Ph.D., CMA, and Jessica L. Evanko, Ph.D., CPA
Corporate social responsibility (CSR) is a topic that has drawn much attention from both academics and practitioners over the past few decades. While researchers have described the strategic importance of CSR and the mechanisms of how it brings financial benefits to an organization, executives around the world continue to test the business value of CSR involving ethical considerations into their operations and decision-making that may lead to improved performance and success.
Additionally, the evolution of CSR continues with questions surrounding its relevance as well as its merits. Some of the largest industries have instituted CSR programs that have faced deserved criticism, distracting us from the societal harm at the core of their businesses. Furthermore, in today’s environment, the concept has been examined closer than ever, with investors and corporate leaders facing pressures to step back from politically charged social issues such as climate change, sustainability, and diversity, equity and inclusion (DEI).
In their 2024 article in Today’s CPA, Frank Badua and Ashish Ghimire highlight the importance of ethical corporate culture and how accountants often lack guidance on how to measure or use it. In that article, the authors discuss CSR being measured by activities such as environmental, social equity and governance initiatives with benefits for organizations looking to attract and retain top talent. Among those benefits are work environment, job satisfaction and employee well-being.
This article discusses key trends that showcase investment into CSR initiatives while adapting to new external demands. It brings to light research based on the stakeholder model that emphasizes a company’s responsibilities to both internal and external stakeholders, with examples of organizational best practices for CPAs and other accountants to consider. Finally, this article highlights the challenges and opportunities regarding the implementation of the CSR stakeholder model approach.
Key CSR Trends
The 2025 State of Corporate Purpose report published in May of 2025 by Benevity Impact Labs is based on a survey of over 500 corporate professionals and highlights the key trends in CSR initiatives. Overall, this report finds that CSR remains a strategic contributor to business success. In addition, corporate social impact is maturing amid heightened pressure to prove ROI and increased stakeholder collaboration with companies more than ever meeting the expectation that they will play a key role in driving social change. Among the survey findings during this defining moment of corporate purpose and responsibility:
- 88% of leaders say their impact strategies are future-proofing their business with corporate purposing becoming more strategic, business-aligned and outcomes-oriented;
- 92% of leaders say they are investing in social impact programs because it is good for business;
- 91% say they are making sure their programs support their corporate strategy and values.
Although data shows that CSR remains a critical strategy for many organizations, attempting to achieve corporate and social goals can be challenging as companies often have limited resources. For example, the median CSR team size in an enterprise of 10,000-50,000 employees is just four people. Moreover, while 76% expect more employee activism in the coming year, 70% of survey respondents believe companies will be quieter about ESG, DEI and climate-related initiatives.
In the face of these pressures and shift in strategies, however, corporate leaders still believe that investing in impact is good for business. Leaders overall recognize the risks of retreating from corporate social responsibility not only as it relates to its bottom line, but also with regards to employee engagement and community and societal impact.
The Stakeholder Model
In 2009, the Journal of Business Ethics published an article by Duygu Turker that investigates the various dimensions of CSR and how CSR affects organizational commitment of employees. This study focuses on the responsibilities an organization has to its various stakeholders, which includes social and nonsocial stakeholders (i.e., society, environment, future generations), employees, customers and the government. (See Table 1.)
Table 1. The Stakeholder Model of CSR
Furthermore, each stakeholder group has a set of items the study uses to measure CSR. For instance, an organization could measure its responsibility to social and nonsocial stakeholders by examining whether it participates in the activities that aim to protect and improve the quality of the natural environment, makes investments to create a better life for the future generations or promotes the well-being of society.
For employees, an organization could determine whether it encourages its employees to participate in volunteer activities or for them to develop their skills and careers. For customers, CSR can be measured by how well an organization protects consumer rights and that customer satisfaction is highly important for the company. And for the government, the organization can determine whether it always pays its taxes on a regular and continuing basis and that it complies with the legal regulations completely and promptly.
The findings of the study revealed that CSR to social and nonsocial stakeholders, employers and customers were significant predictors of organizational commitment and thus affecting the self-esteem and work attitudes of its employees.
Organizational Best Practices
Although corporate firms have been under pressure to operate in the framework of ethical corporate values for quite some time, debate does continue around the idea that corporate entities have some responsibilities toward society, apart from merely fulfilling their economic and legal obligations. The previous study stresses that organizations should emphasize their corporate social responsibilities not only to placate pressure or to signify their corporate citizenship, but for their own organizational benefit. Table 2 emphasizes Texas-based organizations understanding the importance of developing enduring relationships with their stakeholders. Under each category of stakeholders mentioned is a description included in each company’s sustainability and impact reporting found on their websites over the past year. Click here to see Table 2.
Challenges and Opportunities
There are several challenges for companies trying to successfully incorporate CSR initiatives into their operations. However, with every challenge comes an opportunity. Each challenge with a subsequent opportunity on how to successfully incorporate the stakeholder model of CSR into the organization's business process is outlined below.
Current Political and Regulatory Environment
Challenge: As previously mentioned, there are a number of external pressures causing corporate leaders to step back from instituting certain initiatives that may be politically sensitive in nature. In addition, there are always regulatory pressures companies must adhere to from a number of sources including government regulations, industry standards and even what consumers may expect. A failure to comply can cause an organization to suffer legal and financial penalties.
Opportunity: While there was some concern that corporate leaders were going to retreat from CSR in the current politically charged environment, the 2025 State of Corporate Purpose report underscores the belief many organizations have that investment in CSR is good for business. Corporate leaders must insist on continuing and advocating for CSR initiatives in their organizations, specifically by using the stakeholder model approach to keep them keenly aware of their responsibilities toward the environment, future generations, employees, customers, and the government. Accountants should also not be afraid to contribute to policy debates and advocate for specific policy outcomes which, if successful, can lead to more favorable tax policies or reduced regulatory burdens positively impacting the financial performance of their firms. The government component of the stakeholder model of CSR, for example, should serve as a valuable reminder that it needs to comply with all legal regulations.
Defining Goals and Measurement Metrics
Challenge: Because CSR consists of a business model that looks beyond profitability to include other social dimensions, it is not easily measurable. In addition, there is yet to be a clear conceptual or even theoretical argument regarding how and why CSR can bring financial benefits to a firm. This can present a challenge for organizations in how they not only define their goals as they relate to incorporating CSR, but also whether or not they are successful in doing so.
Opportunity: Organizations can measure their CSR performance by tracking key metrics across the various stakeholder groups discussed previously. For example, organizations can track their carbon footprint, charitable giving, and community involvement as well as collect data on employee engagement and customer satisfaction through surveys and other feedback methods. One specific and detailed way an organization can establish a relationship between sustainable practices and financial performance is using the balanced scorecard approach. The balanced scorecard is a performance management tool and while many aspects take time to learn, management accountants within an organization especially can take the lead within their firms by instituting an approach that will work best with a company’s strategic goals, corporate culture, and socially responsible actions.
Determining How to Satisfy All Stakeholders
Challenge: Different stakeholders often have competing needs and expectations. What is good for one stakeholder may not be good for another. For example, meeting the needs of the government by adhering to costly regulations or unexpected tax burdens may result in an increase in prices to the customer or a pullback of charitable contributions to alleviate the shortfall in revenue. Thus, a challenge often arises on how to satisfy all stakeholders.
Opportunity: The stakeholder model approach to CSR discussed in this article is specifically designed to remind corporate leaders of the importance of satisfying the needs of social and nonsocial stakeholders, employees, customers, and the government. Executives often cannot afford to pay attention to everyone, but they can implement strategies to maximize stakeholder satisfaction and manage relationships effectively. This can involve identifying and understanding stakeholders by involving them in decision making, managing expectations by setting realistic goals, and being willing to adapt by continuously evaluating stakeholder relationships and analyzing feedback. Accountants can also familiarize themselves with the codes of conduct of the four major professional organizations which provide a solid framework for ethical behavior when dealing with different stakeholders (see The Significance of Codes of Conduct in Professional Organizations - Standards for Ethical Practice, Today’s CPA)
Sustaining Corporate Social Responsibility in a Changing Landscape
CSR will continue to be a topic of interest to scholars and practitioners with relevance to organizations, no matter the current political and cultural environment. Moreover, how an organization satisfies its obligations to its stakeholders will always be of importance. While there are challenges associated with addressing the needs of these stakeholders, opportunities are available for organizations to fulfill their responsibilities to those individuals and entities.
The concept of stakeholder engagement in an organization is not new. However, the idea of prioritizing CSR in light of the current challenges is something that may not have been previously considered. The key trends outlined in the 2025 State of Corporate Purpose report show that organizations are still serious about their social responsibilities. In addition, many corporations are showcasing an uncanny ability to satisfy the needs of their various stakeholders. Whether or not investment in CSR is at a crossroads, understanding the needs of stakeholders will always be an important consideration impacting the overall success of a business.
About the Authors: James W. Sunday, Ph.D., CMA, is an assistant professor of finance in the William G. McGowan School of Business at King’s College, PA. He may be contacted at jamessunday@kings.edu.
Jessica L. Evanko, Ph.D., CPA, is an associate professor of accounting in the William G. McGowan School of Business at King’s College, PA. She may be contacted at jessicaevanko@kings.edu.
Bibliography
Badua, F., and Ghimire, C. (2024) “How Accountants Can Leverage Corporate Culture” Today’s CPA. 2024.
Benevity Impact Labs (2025, May 14). 2025 State of Corporate Purpose https://benevity.com/state-of-corporate-purpose-2025?utm_medium=pr&utm_source=globenewswire&utm_campaign=socp-2025
Garner, S. A. (2025) “The Significance of Codes of Conduct in Professional Organizations - Standards for Ethical Practice” Today’s CPA. 2025
Turker, D. 2009. How corporate social responsibility influences organizational commitment. Journal of Business Ethics 89 (2): 189-204.
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