Abstract

Management of multinational enterprises is a complex and challenging task. This complexity also exists inmanaging value chains and interactionsamong interest groups. The objective of this paper is to highlight andpresent a theoretical framework on challenges that multinational corporations (MNC) face when integrating theirstakeholders in management processes. In a multinational corporation, value-based management and long termvalue creationrequire the consideration of all stakeholders in the strategic decision-making process. Involvingstakeholders is not only an activity aligned with social responsibility but also necessary for ensuring effectivecorporate governance. Establishing an appropriate strategy for stakeholder engagement raises several challengesfor multinational firms. An extensive literature review resulted in the development of aconceptual frameworkwhich can be used for addressing these challenges. The essential issues of this framework are presented in fourcategories: relationships, environmental context, management (including structure and strategy issues) andstakeholder engagement. Future research might involve a large scale survey to enhance our understanding of theissue and empirically test our theoretical framework.

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