This article attempts to provide an account of both the fundamental normative implications of stakeholder theory and the theory s range of application that both stakeholder advocates and critics can agree upon. Essec business school encourages students and participants in. We conclude by outlining a fourth pragmatist argument that. Objections to friedmans shareholderstockholder theory. Pdf a stakeholder approach to strategic management. Semantic scholar extracted view of the stakeholder theory by charles fontaine et al. Stakeholder theory stakeholder stakeholder management stakeholder engagement plan stakeholder analysis toolkit spectres stakeholder interest tool spectre stakeholder interest tool strategic management stakeholder approach 1984freeman pdf strategic management stakeholder approach freeman pdf business and society ethics sustainability and stakeholder management practical theory. International journal of applied institutional governance volume 1 issue 1 the stakeholder theory in the modern global business environment tony ike nwanji phd researcher on corporate governance kerry e. Stakeholder theory has infiltrated many disciplines in some very useful ways. Stakeholder theory has been a prevalent part of organizational and information systems is research for some time.
Chapter 1 is based on freeman, wicks, and parmar, stakeholder theory as. Its publication proved to be a landmark moment in the development of stakeholder theory. However, under stakeholder theory, csr is said to exacerbate the problem of capitalism and ethics parmar et al. A stakeholder approach to strategic management by r. Edward freeman published his landmark book, strategic management. We sketch three primary arguments from ethical theory for adopting managing for stakeholders. A stakeholder approach, a work that set the agenda for what we now call stakeholder theory. See freeman et al 2010 for a detailed history of the stakeholder idea. Numerous and frequentlyupdated resource results are available from this search. This is only a partial representation of ed freeman s published works on stakeholder theory. Edward freeman originally detailed the stakeholder theory of organizational management and business ethics that addresses morals and values in managing an.
The stakeholder theory of the corporation western washington. Regarding the etymology of stakeholder theory, freeman 1984, discover the. Corporate social responsibility and stakeholder theory symphonya. This paper draws heavily on freeman, harrison, wicks, parmar, and decolle, stakeholder theory. We then suggest that traditionally the stakeholder approach to strategic management has several related characteristics that serve as distinguishing features. Freeman argues that the duty of managers within a corporation is not to shareholders or stockholders i. A stakeholder approach, this work assembles a collection of contributions by the most. In tracing the intellectual roots of stakeholder theory, its.
Among these, stakeholder theory or stakeholder thinking has emerged as a new narrative to understand and remedy three interconnected business problemsthe problem of understanding how value is created and traded, the problem of connecting ethics and capitalism, and the problem of helping managers think about management such that. Widely acknowledged as a world leader in business ethics and strategic management, r. Download it once and read it on your kindle device, pc, phones or tablets. We conclude by outlining a fourth pragmatist argument that suggests we see managing for stakeholders as a new narrative about business that lets us. Teori stakeholder stakeholder theory ramizes dalam bukunya cultivating peace, mengidentifikasi berbagai pendapat mengenai stakeholder. Edward freeman s stakeholder theory holds that a companys stakeholders include just about anyone affected by the company and its workings. Stakeholder theory and the corporate objective revisited. Among these, stakeholder theory or stakeholder thinking has emerged as a new narrative to understand and remedy three interconnected business problemsthe problem of. Putnam h 2002 the collapse of the factvalue dichotomy and other essays. Cambridge core strategic management stakeholder theory by r. But the problem with stakeholder theory is that there is no clear definition yet, there are several kinds of explanations depending on the author from the article. In particular, part 1 is about the origins of stakeholder theory, mention of ansoff etc. In this article, we try to outline this development by carrying out a meta.
The common good, stakeholder theory and the theory of the firm 1 antonio argandona, iese business school, spain the common good, stakeholder theory and the theory of the firm. That view is in opposition to the longheld shareholder theory proposed by economist milton friedman that in capitalism, the only stakeholders a company should care about are its shareholders and thus, its bottom line. Freeman, harrison and zyglidopoulos discuss the foundation concepts and implementation of stakeholder management as well as the advantages this approach provides to firms and their managers. This article presents an exploratory foray into the theory and practice of multistakeholder cooperatives, and it does so in four sections. Reliable information about the coronavirus covid19 is available from the world health organization current situation, international travel. Edward freeman born december 18, 1951 is an american philosopher and professor of business administration at the darden school of the university of virginia, particularly known for his work on stakeholder theory 1984 and on business ethics.
In the intervening years, the literature on stakeholder theory has become vast and diverse. They present a number of tools that managers can use to implement stakeholder thinking, better understand stakeholders and create value with and for them. A stakeholder approach kindle edition by freeman, r. For the last 30 years a growing number of scholars and practitioners have been experimenting with concepts and models that facilitate our understanding of the complexities of todays business challenges.
The purpose of a stakeholder approach to strategic management is to actively plan a new direction for the firm. Edward freeman originally detailed the stakeholder theory of organizational management and business ethics that addresses morals and values in managing an organization. Stakeholder theory and the corporate objective revisited organization science 153, pp. A stakeholder approach originally published in 1984 and reprinted by cambridge university press in 2010. Edward freeman s foundational work continues to inspire scholars and. View enhanced pdf access article on wiley online library. Howell professor of governance and regulation issn. From the seminal work of freeman 1984 that introduced it as a set of managerial principles, stakeholder theory has evolved and today is a widely used lens to analyse different settings. While stakeholder theorists acknowledge a blend of. Stakeholder theory as an ethical approach to effective. Multistakeholder governance in cooperative organizations.
The nature of stakeholder theory and its fundamental normative prescriptions are the subject of much confusion and academic debate. Stakeholder theory by freeman 1984 provides us with a framework that can be used to map out the stakeholders of all different types of businesses. Theory and practice fran ackermann and colin eden this article explores how top management teams can increase the robustness of their strategies by attending to important concepts emerging from the stakeholder literature. After 25 years from its inception by freeman in 1984, the stakeholder approach enjoys support from a growing community of researchers and practitioners. A stakeholder approach, cambridge university press, new york. Introduction one often reads in the literature that firms must be managed not only for shareholders but, more generally, for stakeholders freeman 2008. It builds on concrete facts and analysis, and thus is descriptive, but. Use features like bookmarks, note taking and highlighting while reading strategic management. Preston university of maryland the stakeholder theory has been advanced and justified in the man agement literature on the basis of its descriptive accuracy, instrumen tal power, and normative validity. Protesting students invoking stakeholder theory at shimer college in 2010 the stakeholder theory is a theory of organizational management and business ethics that accounts for multiple constituencies impacted by business entities like employees, suppliers, local communities, creditors, and others. Analysis of three themes emanating from this literature leads to the development of.
Edward freeman s foundational work continues to inspire scholars and students. Stakeholder theory is gaining lots of success in the literature. Honoring the twentyfifth anniversary of one of the most influential books in the history of business strategy and ethics, r. Oclcs webjunction has pulled together information and resources to assist library staff as they consider how to handle coronavirus. There are even different names for this theory, like stakeholder model, stakeholder management, stakeholder theory. A stakeholder approach was first published in 1984 as a part of the pitman series in business and public policy.