A New Approach to CSR: Company Stakeholder Responsibility

  • R. Edward Freeman
  • S. Ramakrishna Velamuri


Assume that the CEO of Firm A is asked the following: ‘Well, I know that your company makes products that consumers like, and that those products make their lives better. And I know that suppliers want to do business with your company because they benefit from this business relationship. I also know that employees really want to work for your company, and are satisfied with their remuneration and professional development. And, let’s not forget that you’re a good citizen in the communities where you are located;2 among other things, you pay taxes on the profits you make. You compete hard but fairly. You also make an attractive return on capital for shareholders and other financiers. However, are you socially responsible?’


Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.


  1. Damon, W. (2002) ‘The Moral Advantage.’ Optimize. Available on the Internet at: http://www.optimizemag.com/issue/003/ethics.htm.
  2. Donaldson, T. and Preston, L. (1995) ‘The Stakeholder Theory of the Corporation: Concepts, Evidence, and Implications.’ Academy of Management Review. 20: 65–91.Google Scholar
  3. Freeman, R. E. (1984) Strategic Management: A Stakeholder Approach, Boston: Pitman Publishing Inc.Google Scholar
  4. Freeman, R. E. (2005 in press), ‘The Development of Stakeholder Theory: An Idiosyncratic Approach’ in Ken G. Smith and Michael A. Hitt (eds) The Oxford Handbook of Management Theory: The Process of Theory Development, Oxford: Oxford University Press.Google Scholar
  5. Freeman, R. E. and J. McVea. (2001) ‘A Stakeholder Approach to Strategic Management.’ In M. Hitt, R. E. Freeman, and J. Harrison (eds), Handbook of Strategic Management, 189–207, Oxford: Blackwell.Google Scholar
  6. Freeman, R. E., Martin, K., Parmar, B., Cording, M. and Werhane, P., (2005 in press), ‘Leading through Values and Ethical Principles’, in C. Cooper and R. Burke (eds) Inspiring Leaders, Oxford: Oxford University Press.Google Scholar
  7. Freeman, R. E., Phillips, R., Harrison, J. and Wicks, A. (2005) Managing For Stakeholders. Olsson Center Working Papers. The Darden School. University of Virginia.Google Scholar
  8. Gardner, H., Czikszentmihalyi, M. and Damon, W. (2000) ‘The Good Work Project: a Description’, unpublished document.Google Scholar
  9. Haaland-Matlary, J. (2005) ‘Kjernekar: Ethical Integrity in a Chaotic World.’ IESE Business School Alumni Magazine, 96 (Jan–March): 12–15.Google Scholar
  10. Slinger, G. (1998) ‘Spanning the Gap: The Theoretical Principles Connecting Stakeholder Policies to Business Performance’, Centre for Business Research, Department of Applied Economics, Working Paper, University of Cambridge.Google Scholar
  11. Wicks, A. C., Freeman, R. E., and Parmar, B. (2005) ‘Business Ethics in an Era of Corporate Crisis.’ Darden School Working Paper.Google Scholar

Copyright information

© R. Edward Freeman and S. Ramakrishna Velamuri 2006

Authors and Affiliations

  • R. Edward Freeman
  • S. Ramakrishna Velamuri

There are no affiliations available

Personalised recommendations