Analysing business ethics and corporate social responsibility philosophy essay this paper will explain the stakeholder and stockholder theories of corporate management and argue in favor of the stakeholder theory on the basis of the harms the shareholder argument poses in terms of both social responsibility and the stability of the. This essay examines links, similarities, and dissimilarities between stakeholder theory and it is essential to note that the unit of analysis for stakeholder theory is not the company itself but the relationships between an organization and its stakeholders (freeman et al, 2010) ferent versions as descriptive/empirical stakeholder. Analytic aspects of stakeholder theory the analytical perspective to stakeholder theory covers two dimensions: (1) the descriptive perspective and (2) the instrumental perspective both were discussed in the study by donaldson and preston (1995), and later renamed by reed (2002) as positive and strategic. Stakeholder analysis is based on the belief that certain reciprocal relationships exist between an organization and certain groups and individuals (ginter, swayne, and duncan 1989.
The panels and faculty-led sessions focused on areas of current research and opportunities for future research, addressing topics such as using qualitative methods to advance stakeholder theory, criticisms and responses to stakeholder theory, stakeholder theory and philosophy, applying stakeholder theory in organizations, and stakeholder theory. Essay on the stakeholder theory by thomas donaldson - a stake holder, in general is defined as an individual or organization likely affected by the performance of an organization. A typology based on the division of stakeholder theories into normative, descriptive, and instrumental is rejected on the grounds that the latter two designations refer to second order theories rather than divisions within stakeholder theory and the first is a designation which, for the purposes of business ethics, applies to all stakeholder. 2) stakeholder theory is instrumental in offering a framework for investigating the links between conventional firm performance and the practice of stakeholder management 3) although stakeholder theory is descriptive and instrumental, it is more fundamentally normative.
Reading time: 4 minutes this post summarizes a 1995 academic paper by thomas donaldson and lee e preston, called “the stakeholder theory of the corporation: concepts, evidence, and implications”from time-to-time, i will highlight important papers like this to make them more easily accessible. Stakeholder engagement over stakeholder management, a greater consideration of stakeholder power structures within and across collaboration, and the application of stakeholder theory to a problem domain rather than a focal organization. Approach to the stakeholder concept is the so called descriptive stakeholder theory this theory is concerned with how managers and stakeholders actually behave and how they view their actions and roles. Stakeholder theory is an important part of modern business ethics many scholars argue for a normative instead of an instrumental approach to stakeholder theory recent examples of such an approach show that problems appear with respect to the ethical foundation as well as the specification of the.
The stakeholder theory is meant to break the confusing circle (avoiding problems), is a strategic management process and not management planning process, is about the survival of the firm, is focusing on long-term success and relationships with stakeholders, builds on concrete facts and analysis whereby stakeholders are not ‘just’ given and. Stakeholder theory is also connected with the literature of corporate sustainability and csr, since it provides a suitable theoretical framework for analyzing the relationship between business and society (clarkson, 1995 donaldson and preston, 1995 waddock and graves, 1997a. Of fiduciary theory enjoy widespread support: shareholder theory and stakeholder theory shareholder theorists argue that managers must act in accordance with the interests of a corporation‘s shareholders, but stakeholder theorists believe managers must act in.
Note, however, that post, preston and sachs, who take a more instrumental than normative view of stakeholder theory, embrace a wider enumeration of stakeholders, including regulatory authorities, governments and unions. A stakeholder group will have to be justified on ethical basis, well beyond any instrumental attempt 2 argandońa, a (1998) the stakeholder theory and the common good journal of business. Distinguish between descriptive, instrumental and normative aspects or usages of stakeholder theory in donaldson and preston’s (1995, 70f) terms, the corporate perspective of stakeholder theory.
Stakeholder theory in a complex and intersubjective moral world we also show how stakeholder theory offers a compelling recipe for moral problem solving in a pragmatic, pluralistic world. Stakeholder theory is a fundamental theory about how business works at its best and how it could work it is concerning on the value creation and trade on how to manage a business effectively. Stakeholder theory is a fundamental theory about how business works at its best and how it could work it is concerning on the value creation and trade on how to manage a business effectively a consequences of focusing on organization or company’s stakeholder is that the shareholder.
The history of business ethics and stakeholder theory in america the first part of your reading in daniel terris’ book will include an overview of lockheed martin’s organization and will lay out the research plan that terris used to obtain information necessary for his work. 2 distinctions in descriptive and instrumental stakeholder theory: a challenge for empirical research abstract stakeholder theory is one of the most influential theories in business ethics. First, a distinction is made between research connected with descriptive and with instrumental stakeholder theory as defined by donaldson & preston in the narrow or broad sense second, a distinction is made between research that interprets descriptive and instrumental stakeholder theories as either hypotheses or research areas. The history of business ethics and stakeholder theory in america assignment overviewassignment overviewthe first part of your reading in daniel terris’ book will include an overview of lockheed martin’s organization and will lay out the research plan that terris used to obtain information necessary for his work.