The Influence of Organizational Justice on Firm Performance: A Stakeholder Management Perspective^*

The relationship between stakeholders and organizations has been gaining more focus in strategic organizational management. The scenario of increased accountability required by society and by the competitive business environment itself demands ethical, fair, and sustainable practices from companies. In this sense, effective and fair stakeholder management becomes relevant. Thus, stakeholder theory proves to be a valid theoretical perspective for this challenge. In its conceptualization, stakeholder theory has pointed out different issues for strategic management practices, and how to treat the stakeholder fairly has been one of the concerns of the proponents of the theory (Bosse, Phillips, & Harrison, 2009). In this regard, principles of organizational justice have been incorporated into stakeholder management models. The authors argue that organizational justice, including its basic dimensions of distributive justice, procedural justice, and interactional justice, can positively impact the bottom line of organizations through synergy in value creation and by encouraging reciprocal behavior between the firm and stakeholders.