Who defined stakeholder theory?
Stakeholder theory was first described by Dr. F. Edward Freeman, a professor at the University of Virginia, in his landmark book, “Strategic Management: A Stakeholder Approach.” It suggests that shareholders are merely one of many stakeholders in a company.
Why you should use a stakeholders theory for business ethics?
Well, stakeholder theory suggests that a healthy competitive environment benefits everyone, including other stakeholders such as customers. There are plenty of other stakeholders you could identify such as suppliers, unions, trade associations, political groups, etc.
What is a stakeholder theory used for?
Stakeholder theory addresses business ethics, morals and values when managing stakeholders involved with a project or organization. It seeks to optimize relations with stakeholders, thereby improving efficiencies throughout the project or organization.
Is stakeholder theory really ethical?
Stakeholder theory claims to promote moral values in business and this claim is generally accepted. Yet, literature shows that the theory is fundamentally strategic and only incidentally normative.
What are the benefits of using stakeholder theory approach in ethical decision making How does this approach work?
The stakeholder-based approach to ethical decision making provides a framework for evaluating the options or alternatives available. This approach also requires understanding the potential impact on each of the stakeholders before choosing a direction.
What are the stakeholders in stakeholder ethics?
Stakeholder groups include, for example, communities, customers, employees, the environment, financiers (e.g., shareholders), governments, and suppliers.
What are the ethical obligations of stakeholders?
The ethical responsibility of a stakeholder is to make known his or her preferences to the companies he or she purchases from or relies on. Such communication can lead to an increased commitment on the part of corporations to improve.