Introduction
Over the last 200 years, the influence of business corporations on our
society has grown quickly and tremendously. No wonder that the corporate purpose
they should serve is discussed by many people with different backgrounds,
including:
- Academics in the fields of economics, law, political science and sociology,
- Business ethics and philosophic scientists,
- Political parties, labor unions, various communities, environmentalists,
and
- Media and the general public.
In countries with a market economy it is generally agreed that companies
should pursue economic profitability. However many people would likewise agree
that organizations also have certain social responsibilities. Profitability
and responsibility can and should be combined in an ideal world, however it
is clear that they are at least partially contradictory.
On the one hand, businesses must make profits for surviving. Specifically,
corporations must provide a higher return on their equity capital than would
be realized by the shareholders if they deposited their money on a risk-free
bank account. The profits that are made create trust from investors and are
usually reflected in higher share-prices, which make it easier for the company
to realize its goals. The profits are not only a result, but also a source
of corporate competitive health and wealth.
On the other hand, companies are networks of parties and people working
together towards a shared goal and not merely 'economic machines'. Employees
nowadays represent a major part of the value of any company (intellectual
capital). To motivate people to work hard for the interests of the company,
a level of trust must be built with them. Likewise it is important for trust
to develop between the organization and its external environment (customers,
suppliers, government, and interest groups). Such trust can only grow from
the perceived secure feeling, that the interests of all individuals and stakeholders
are taken into account.
The Stakeholder Value Perspective
The Stakeholder Value Perspective (also: Stakeholder Values
Perspective) emphasizes responsibility over profitability and sees
organizations primarily as coalitions which must serve all parties
involved.
Stakeholder Value advocates believe that the success of an organization
should be measured by the satisfaction among all stakeholders. And they see
stakeholder management both as an end/purpose and as a means. They believe
that social responsibility is an organizational matter. Also they claim that
society is best served by organizations pursuing joint interests and economic
symbiosis.
A company is not an instrument of its shareholders. But it is a coalition
between various resource suppliers, with the intention of increasing their
common wealth. Advocates of this perspective refuse to give shareholders a
higher moral claim on the organization than providers of other resources.
Recognizing the moral claims of stakeholders other than the shareholders
introduces other values than financial value in the spectrum of what needs
to be pursued by the organization. Stakeholder management is not merely instrumental
to create shareholder value, but normative. By posessing strongly motivated
employees, and by nurturing high levels of trust with all parties surrounding
the organization, the pursuing of the joint interests of all stakeholders
is not only more fair, but it will also maximize the health of the society.
|
Stakeholder Capitalism (Freeman)
Stakeholder Management...
|
|
|
|
|
|
|
7 Perspectives of Looking at Stakeholders
Clustering Stakeholders...
|
|
|
|
|
|
|
Doing Well by Doing Good?
The Correlation Between Corporate Social Responsibility and Corporate Financial Performance...
|
|
|
|
|
|
|
Reasons Why People are Doing Voluntary Work
Expectancy Theory, Corporate Social Responsibility, Stakeholder Perspective, Volunteers...
|
|
|
|
|
|
|
The Maturity Stages of Corporate Responsibility
Organizational Development, Corporate Responsibility Maturity...
|
|
|
|
|
|
|
|
|
The Purpose of Business: Stockholder versus Stakeholder Theories
Stakeholder Analysis; Stakeholder Commitment...
|
|
|
|
|
|
What is a Business For?
Definition of Corporate Succes...
|
|
|
|
|
|
Strategy, Society and CSR
CSR Strategy, Competitive Advantage, Strategic Corporate Social Responsibility, Strategy and Society...
|
|
|
|
|
|
The Strategic Role of Public Relations and Communication in Business
Public Relations, Strategic Management, Corporate Responsibility, Stakeholder Management, Stakeholder Analysis...
|
|
|
|
|
|
The Dawn of Conscious Capitalism
Conscious Capitalism, Value-driven Consumer, Socially Responsible Investing, Corporate Responsibility...
|
|
|
|
|
|
CSR Implementation and Communication Model (Schmeltz)
CSR Communication, CSR Implementation, CSR Strategy, Corporate Identity, Corporate Values, CSR Stages,...
|
|
|
|
|
|
Introduction Into Welfarenomics
Welfarenomics...
|
|
|
|
|
|
Ethics in Corporate Governance
Ethics, Corporate Governance...
|
|
|
|
|
|
Introduction to Stakeholder Management
Introduction to Stakeholder Management...
|
|
|
|
|
|
News about Stakeholder Perspective
|
|
|
|
|
News about Stakeholders Responsibility
|
|
|
|
|
Videos about Stakeholder Perspective
|
|
|
|
|
Videos about Stakeholders Responsibility
|
|
|
|
|
Presentations about Stakeholder Perspective
|
|
|
|
|
Presentations about Stakeholders Responsibility
|
|
|
|
|
Books about Stakeholder Perspective
|
|
|
|
|
Books about Stakeholders Responsibility
|
|
|
|
|
More about Stakeholder Perspective
|
|
|
|
|
More about Stakeholders Responsibility
|
|
|
|
|
|
Compare with the Stakeholder Value Perspective:
Shareholder Value Perspective
| Value Based Management |
Strategic Management
| Strategic Intent
| Ashridge Mission
Model | Core Competence
| Clarkson Principles
| Intrinsic
Stakeholder Commitment |
Stakeholder Analysis
| Stakeholder Mapping
| Strategic
Stakeholder Management |
Moral Purpose
| Seven Surprises
| Spiral Dynamics
Return to Management Hub: Change & Organization | Communication & Skills | Decision-making & Valuation | Ethics & Responsibility | Finance & Investing | Human
Resources | Knowledge & Intangibles | Leadership
| Marketing |
Program & Project Management
| Strategy |
Supply Chain & Quality
More Management Methods, Models and Theory
|
|
|
Special Interest Group Leader
|
|
|
|
|
|
|