Abstract
One of the central uses of stakeholder theory, in its original form, was as a counterpoint to the idea that corporations should be managed in the interests of shareholders. As the theory developed the debate was often framed in terms of “shareholders vs. stakeholders.” While developing “theories of the firm” is an interesting and useful project, focusing solely on “theory of the firm” obscures a more important contribution of stakeholder theory. The purpose of this brief essay is to set forth what I consider to be the central insight of stakeholder theory: the jointness of stakeholder interests.
Originally published in: J Bus Ethics, 96, 7–9 © Springer Science Business Media B.V., 2010
Reprint by Springer, https://doi.org/10.1007/s10551-011-0935-5
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Notes
- 1.
Bill George (2003, p. 104).
References
George, B. 2003. Authentic Leadership: Rediscovering the Secrets to Creating Lasting Value. Hoboken: Jossey-Bass.
Näsi, J. 1995. What is Stakeholder Thinking? A Snapshot of Social Theory of the Firm. In Understanding Stakeholder Thinking, ed. J. Näsi, 19–32. LSR-Julkaisut Oy: Helsinki.
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The ideas in this article have been developed in a number of publications, foremost of which is R. Edward Freeman, Jeffrey Harrison, and Andrew Wicks, Managing for Stakeholders: Survival, Reputation and Success, Yale University Press, 2007, and R. Edward Freeman, “Managing for Stakeholders,” in T. Beauchamp, N. Bowie, and D. Arnold (eds.) Ethical Theory and Business, 8th edition, Pearson, 2008. I am grateful to editors, publishers, and co-authors for their support, and allowing me to further develop these ideas here.
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Freeman, R.E. (2023). Managing for Stakeholders: Trade-Offs or Value Creation. In: Dmytriyev, S.D., Freeman, R.E. (eds) R. Edward Freeman’s Selected Works on Stakeholder Theory and Business Ethics. Issues in Business Ethics(), vol 53. Springer, Cham. https://doi.org/10.1007/978-3-031-04564-6_15
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