Stakeholder Theory

Topics: Stakeholder theory, Strategic management, Stakeholder Pages: 33 (9561 words) Published: January 18, 2012
The Stakeholder Theory

Charles Fontaine Antoine Haarman Stefan Schmid

- December 2006 -

Stakeholder Theory of the MNC

Index
1. Introduction ........................................................................................3 2. Basic idea of the Stakeholder Theory and Definition ....................3 2.1. 2.2. 2.3. 2.4. 2.5. The stakeholder concept – popular and trendy..........................................................................4 Different definitions of Stakeholder .............................................................................................5 What is a Stakeholder? ..................................................................................................................6 Who are Stakeholders? ..................................................................................................................6 History of the Stakeholder Theory................................................................................................7

3. Contribution of Freeman to the stakeholder literature ..................9 3.1. 3.2. Freeman Strategic Management ...................................................................................................9 Freeman’s essential book: A stakeholder approach .............................................................. 10

4. Normative, instrumental, and descriptive stakeholder theory....13 4.1. Introduction................................................................................................................................... 13

4.2. Normative theory.......................................................................................................................... 14 4.2.1. Objective................................................................................................................................ 14 4.2.2. The action of a company should be ‘ethic’........................................................................... 15 4.2.3. Freeman’s normative theory ................................................................................................. 15 4.3. Analytic theory.............................................................................................................................. 17 4.3.1. Introduction............................................................................................................................ 17 4.3.2. Strategic management: Freeman (1984) and Savage et Al. (1991)................................... 18 4.3.3. Stakeholder identification: Mitchell, Agle and Wood (1997)................................................ 21 4.3.4. Friedman and Miles (2002)................................................................................................... 22

5. The stakeholders: from theory to practice....................................24 5.1. 5.2. 5.3. 5.4. The Corporate Social Responsibility theory ............................................................................ 24 The three main current of the CSR ............................................................................................ 26 The different CSR strategies ...................................................................................................... 28 The Limits of the theory and its application ............................................................................ 30

6. Conclusion .......................................................................................33

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Stakeholder Theory of the MNC

1. Introduction
In our work we want to explain the principle ideas of the stakeholder theory. The fact that the stakeholder concept has achieved widespread popularity among academics, media and managers we think that it is an important task to bring some system into all those confusing approaches around to the stakeholder concept. At the beginning we will comment on the basic idea of the stakeholder theory. We will also try to give a clear...

References: Aggeri Frank, Acquier Aurelien, (2005). “La Theories des Stakeholders pemet-elle de render compte des pratiques en matiere de RSE”, XIV Conference Internationale de Management Strategique, Anger 2005 Ansoff, H. I. (1965). Corporate Strategy. New York: McGraw-Hill. Aoki, M. (1984). The Co-operative Game Theory of the Firm. Oxford: Clarendon Press. Caron Michel, Quairel-Lanoizelée Françoise (2004). Mythes et réalités de l’entreprise responsable. Clarkson, M.B.E, (1995). “A Stakeholder Framework for Analyzing and Evaluating Corporate Social Performance”, Academy of Management Journal, 20/1: 92-118. Commission Green Paper 2001. “Promoting a European Framework for Corporate Social Responsibility” Dodd, E. M., Jr. (1932). “For Whom Are Corporate Managers Trustees?” Harvard Law Review, 45:1145-63. Reproduced in M. B. E. Clarkson (ed.) (1998) The Corporation and its Stakeholders: Classic and Contemporary Reading. Toronto: University of Toronto Press. Donaldson and Preston, L.E. (1995). “The Stakeholder Theory of Corporation: Concepts, Evidence and Implication”, Academy of Management Review, 20/1: 65. Freeman, R.E (1984). “Strategic Management: A stakeholder Approach”. Boston, MA: Pitman. Freeman, R.E (1999). “Response: Divergent Stakeholder Theory”, Academy of Management Review, 24/2: 233-36. Freeman, R.E (2004). “A Stakeholder Theory of Modern Corporations”, Ethical Theory and Business, 7th edn. Freeman, R.E and Evan, W.M. (1990). “Corporate Governance: A stakeholder Interpretation”, Journal of Behaviour Economics, 19: 337-59. Friedman, Milton (1970), New York Times Magazine of the 13th September Friedman, A.L. and Miles, S. (2001). “Developing a Stakeholder Theory”, Journal of Management and Studies, 39/1: 1:21. Friedman, A.L. and Miles, S. (2006). “Stakeholders: Theory and Practice”, Oxford University Press. .
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Stakeholder Theory of the MNC
Elkington, John (2002). The Sustainability Advantage: Seven Business Case Benefits of a Triple Bottom Line. Jones, T.M. (1995). “Instrumental Stakeholder Theory: A Synthesis of Ethics and Economics”. Academy of Management Review, 24/2: 206:19. Migué Jean-Luc, “De la responsabilité sociale de l 'entreprise” , Le québecois libre No 31 . Mitchel R.K, J.D. Wood, B. R. Agle (1997),” Towards a theory of stakeholders identification and salience: defining the principle of who and what really counts”, Academy of Management Review, vol. 22, n°4, p. 853-887. Pfeffer Jeffrey, Salancik Gerald (1978). The Resource Dependence Theory of The external control of organizations. Porter, M. (1980). Competitive Strategy: Techniques for Analyzing Industries and Competitors. New York: Free Press. Roberts, R. W., Mahoney, L. (2004). “Stakeholder Concept of the Corporation: Their Meaning and Influence in Accounting Research”, Business Ethics Quarterly, 14/3: 399-431. Savage, G.T., Nix, T.W, Whithead, C.J., and Blair, J.D, (1991). “Strategies for Assessing and Managing Organizational Stakeholders”, Academy of Management Executives, 5/2: 61-75 Trochon, J-Y (2003). Les nouveaux risques de l 'entreprise face à la mondialisation, approche juridique, RDAI, n° 8, pp. 854 Younkins Edward W., Friedman Milton. “Pragmatic and incremental libertarianism”, Le québécois libre No 176.
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