CSP, on the other hand, has been ill-defined and measured in a wide range of ways. Many past studies have used different measures as proxies for CSP, which inadequately reflect its breadth as a concept. We argue for a reformulation of the question that emphasizes the link between social performance and the way an organization is managed, i.e., that explicitly focuses on stakeholder relations. A Stakeholder Approach . Classifications of stakeholders can further be understood as primary or secondary, with primary stakeholders the market-driven ones, including customers, suppliers, employees, and investors, and possibly the environment because of the need for raw materials.
Secondary stakeholders are more ancillary, for example, communities and governments.
That is, we are interested in considering the relationship between perceived quality of management and stakeholder relations. Quality of management can conceivably be understood, at least in part, as the firm's overall reputation for being soundly run. Importantly, this reframing of the basic research question places financial performance, considered now as a measure of the way owners or shareholders are treated, with other stakeholders as part of the constellation of constituents to which successful companies need to pay attention. The hypothesis is supported by evidence from strategic management. Real expectations for the firm seem to be broader than traditional measures of financial performance alone.