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This paper shows that local mutual funds lead firms to engage in corporate social activities locally – corporate community investment (CCI).

Using an extensive US sample of 3,691 firms for the period of 2005–2018, we find that mutual funds investing in local firms tend to increase CCI. To address endogeneity concerns, we employ an instrumental variable (IV) approach with the S&P 500 Index and Russell 1000/2000 Indexes, which suggests a causal effect of local mutual funds on CCI. Our robustness tests include alternative measures of CCI and local ownership as well as different samples using sole-HQ firms, time lags and a matching sample analysis. In addition, we employ alternative approaches for causality tests.

We find that mutual funds investing in local firms tend to increase CCI. In addition, our results indicate that CCI tends to increase firm performance measured with Tobin’s Q and operating cash flow, especially in the consumer-oriented industries where customer relations are critical. The findings imply that CCI is considered as building reputational and relationship capital in communities (i.e. strategic intangibles related to stakeholders). Local mutual funds can help firms develop such strategic intangibles that promote shareholder value.

Our study is the first to investigate the role of local institutional shareholders as a driving force of a firm’s community investments.

This study aims to investigate the impact of stakeholders’ nonfinancial resources (NFRs) on companies’ profitability, filling a significant gap in the literature regarding the role of NFRs in value creation.

Data from 76 organizations from 2017 to 2019 were collected and analyzed. Four primary NFRs and their key value drivers were identified, representing core elements that support different dimensions of a company’s performance. Statistical tests examined the relationship between stakeholders’ NFRs and financial performance measures.

When analyzed collectively and individually, the results reveal a significant positive influence of stakeholders’ NFRs on a firm’s profitability. Higher importance assigned to NFRs correlates with a higher return on sales.

This study contributes to the literature by empirically bridging the gap between stakeholder theory and the resource-based view, addressing the intersection of these perspectives. It also provides novel insights into how stakeholders’ NFRs impact profitability, offering valuable implications for research and managerial practice. It suggests that managers should integrate nonfinancial measures of NFRs within their performance measurement system to manage better and sustain companies’ value-creation process.

Business process management (BPM), as a pillar of information systems (IS) research, has become more complex with the advent of new technologies, emphasizing the need for moral and ethical perspectives. To foster moral behavior and responsible action, including ethical values in IT systems and processes can be a solid option. By incorporating a socio-technical perspective, we are able to analyze the various aspects of BPM and organizational processes and the incorporated values. We find an overall acknowledgment of the importance of values and ethics in BPM.

This publication explores ethical values within BPM through a systematic literature review (SLR). The study aims to identify the ethical dimensions inherent in BPM and their practical implications in process management and task execution. The methodological approach adopted is a SLR (Boell and Cecez-Kecmanovic, 2015), adapting the PRISMA guidelines (Page et al., 2021) to identify 82 articles from 21 top IS journals suggested by Lowry et al. (2013).

A descriptive framework is developed to explain the use and application of ethical values within business processes. This framework enables practitioners and researchers to categorize and understand the various ethical considerations involved in BPM. It provides a structured approach highlighting the interrelation between process perspectives and ethical values, demonstrating how different BPM approaches may have varying ethical implications. We compare past and future research in business processes, identifying areas for further investigation and theoretical development. A historical analysis of values and literature also helps contextualize contemporary discussions on ethics in BPM, shedding light on the evolution of ethical considerations within this domain.

Our study contributes to a more nuanced understanding of BPM, highlighting the importance of considering ethical values and socio-technical perspectives in designing and implementing business processes. These findings contribute to understanding the values associated with different types of processes and their employment and highlight potential areas for future research. Our study provides ethics-oriented research in IS with novel insights by examining BPM from an ethical value perspective. We contribute to the BPM literature by examining which values are applied in which process types from which perspective. In addition, our research suggestions provide food for thought for both research streams.