By R. Edward Freeman
ISBN-10: 0521137934
ISBN-13: 9780521137935
ISBN-10: 0521190819
ISBN-13: 9780521190817
From the writer of the landmark 1984 name, Strategic administration: A Stakeholder process, comes a reaction to the consequent literature within the intervening years. Stakeholder concept: The cutting-edge examines this physique of study and assesses its relevance for our realizing of contemporary enterprise. starting with a dialogue of the origins and improvement of stakeholder conception, it exhibits how this corpus of thought has inspired various diverse fields, together with strategic administration, finance, accounting, administration, advertising, legislations, overall healthiness care, public coverage, and atmosphere. It additionally beneficial properties in-depth discussions of 2 vital components that stakeholder idea has helped to form and outline: enterprise ethics and company social accountability.
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Extra info for Stakeholder Theory: The State of the Art
Example text
These questions go beyond objective value maximization. Second, Jenson claims that total firm value maximization makes society better off. He also admits that for this to be true some special conditions must be in place. He says, When monopolies or externalities exist, the value maximizing criterion does not maximize social welfare. By externalities I mean situations in which the decisionmaker does not bear the full cost or benefit consequences of his or her choices; water and air pollution are classic examples.
First, Jensen states that purposeful corporate behavior requires a single value objective function. He gives the example of a manager who is forced to choose between maximizing profit or market share – given that every incremental increase in market share comes at higher cost. Here he believes that managers are forced to choose between the two goals and that value maximization offers them an objective principle for making the trade-off. He continues, 16 We review this literature in Chapters 4 and 8.
Smith would come under pressure to do something about it, and if Smith lived in a relatively free society, community members could claim that Smith has damaged them, and sue for relief, either through the courts, or via legislation. Venkataraman has suggested that the conflicts that exist between actors in the factor markets will ultimately be sorted out by the entrepreneurial process (the strong or weak force). But, alternatively, we can look at these conflicts from the standpoint of Smith and the stakeholders in Smith Bread Company.
Stakeholder Theory: The State of the Art by R. Edward Freeman
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