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Page 1 of 6

  • 4 - Stakeholder Approaches to Corporate Sustainability

  • from Part I - Corporate Sustainability: Approaches
  • Edited by Andreas Rasche, Copenhagen Business School, Mette Morsing, Principles for Responsible Management Education (PRME), UN GlobalCompact, United Nations, Jeremy Moon, Copenhagen Business School, Arno Kourula, Amsterdam Business School, University of Amsterdam
  • Book:
    Corporate Sustainability
    Published online:
    09 March 2023
    Print publication:
    30 March 2023, pp 75-95

  • Summary

    The ability of business to meaningfully engage with those groups and individuals who it affects, and is affected by – its stakeholders – is a critical component in humanity’s pursuit of net zero, sustainable development for all. This chapter explores and unpacks stakeholder approaches to corporate sustainability and responsible business.

    It starts off by framing the big picture of why a stakeholder approach – one that accounts for the interdependencies between business, society and nature – is increasingly pivotal during the uncertain and ambiguous times of the 2020s. Following on, the chapter introduces the core features of a stakeholder approach to corporate sustainability. The third section looks at different stakeholder models. It illustrates stakeholder model development in business settings over time, as well as the influence of the cultural context, such as the one found in the Nordic countries, to foster a stakeholder mindset in business.

    The fourth and final section considers stakeholder theory in the age of sustainability, with particular coverage given to the implications of new Information Communication Technologies (ICT) for successful stakeholder engagement strategies.

    Weaved in throughout this chapter, and parallel to the online case study, are a number of examples designed to illustrate how a stakeholder approach manifests in the ‘real world’.

  • Toward a Theory of Marginalized Stakeholder-Centric Entrepreneurship

  • Rashedur Chowdhury, Saras D. Sarasvathy, R. Edward Freeman
  • Journal:
    Business Ethics Quarterly / Volume 34 / Issue 1 / January 2024
    Published online by Cambridge University Press:
    19 January 2023, pp. 1-34
    Print publication:
    January 2024
    • Article
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  • The neglect of marginalized stakeholders is a colossal problem in both stakeholder and entrepreneurship streams of literature. To address this problem, we offer a theory of marginalized stakeholder-centric entrepreneurship. We conceptualize how firms can utilize marginalized stakeholder input actualization through which firms should process a variety of ideas, resources, and interactions with marginalized stakeholders and then filter, internalize, and, finally, realize important elements that improve a variety of related socioeconomic, ethical, racial, contextual, political, and identity issues. This input actualization process enables firms to innovate with marginalized stakeholders and develop marginalized stakeholder capabilities. To this end, firms fulfill both their moral and entrepreneurial claims to marginalized stakeholders.

  • The Promise of Pragmatism: Richard Rorty and Business Ethics

  • Sareh Pouryousefi, R. Edward Freeman
  • Journal:
    Business Ethics Quarterly / Volume 31 / Issue 4 / October 2021
    Published online by Cambridge University Press:
    30 April 2021, pp. 572-599
    Print publication:
    October 2021

  • Pragmatists believe that philosophical inquiry must engage closely with practice to be useful and that practice serves as a source of social norms. As a growing alternative to the analytic and continental philosophical traditions, pragmatism is well suited for research in business ethics, but its role remains underappreciated. This article focuses on Richard Rorty, a key figure in the pragmatist tradition. We read Rorty as a source of insight about the ethical and political nature of business practice in contemporary global markets, focusing specifically on his views about moral sentiments, agency, and democratic deliberation. Importantly for business ethicists, Rorty’s approach sets in stark relief our moral responsibility as useful, practical thinkers in addressing the societal challenges of our time. We use “modern slavery” as an empirical context to highlight the relevance of Rorty’s approach to business ethics.

  • Part II - Stakeholder Theory and Society

  • Edited by Jeffrey S. Harrison, University of Richmond, Jay B. Barney, University of Utah, R. Edward Freeman, University of Virginia, Robert A. Phillips, York University, Toronto
  • Book:
    The Cambridge Handbook of Stakeholder Theory
    Published online:
    01 May 2019
    Print publication:
    09 May 2019, pp 75-144

  • Summary

    This chapter examines the Shareholder Primacy Norm (SPN) as a widely acknowledged impediment to corporate social responsibility (CSR), including how this relates to Stakeholder Theory. We start by explaining the SPN and then review its status under US and UK law and show that it is not a legal requirement, at least under the guise of shareholder value maximization. This is in contrast to the common assertion that managers are legally constrained from addressing CSR issues if doing so would be inconsistent with the economic interests of shareholders. Nonetheless, while the SPN might be muted as a legal norm, we show that it is certainly evident as a powerful social norm among managers and in business schools— reflective, in part, of the sole voting rights of shareholders on corporate boards and of the dominance of Shareholder Theory. We argue that this view of CSR is misguided, not least when associated with claims of a purported legally enforceable requirement to maximize shareholder value. We propose two ways by which the influence of the SPN among managers might be attenuated: extending voting rights to non-shareholder stakeholders or extending fiduciary duties of executives to non-shareholder stakeholders.

The Cambridge Handbook of Stakeholder Theory
  • Edited by Jeffrey S. Harrison, Jay B. Barney, R. Edward Freeman, Robert A. Phillips
  • Published online:
    01 May 2019
    Print publication:
    09 May 2019
  • In the decades since R. Edward Freeman first introduced stakeholder theory, which views firms in terms of their relationships to a broad set of partners, the stakeholder approach has drawn increasing attention as a model for ethical business. Edited by Freeman, alongside other leading scholars in stakeholder theory and strategic management, this handbook provides a comprehensive foundation for study in the field, with eighteen chapters covering some of the most important topics in stakeholder theory written by respected and highly cited experts. The chapters contain an overview of the topic, an examination of the most important research on the topic to date, an evaluation of that research, and suggestions for future directions. Given the pace of new scholarship in the field, this handbook will provide an essential reference on both foundational topics as well as new applications of stakeholder theory to entrepreneurship, sustainable business, corporate responsibility, and beyond.
Stakeholder Theory

Stakeholder Theory
  • Concepts and Strategies
  • R. Edward Freeman, Jeffrey S. Harrison, Stelios Zyglidopoulos
  • Published online:
    18 August 2018
    Print publication:
    30 August 2018
  • The stakeholder perspective is an alternative way of understanding how companies and people create value and trade with each other. Freeman, Harrison and Zyglidopoulos discuss the foundation concepts and implementation of stakeholder management as well as the advantages this approach provides to firms and their managers. They present a number of tools that managers can use to implement stakeholder thinking, better understand stakeholders and create value with and for them. The Element concludes by discussing how managers can create stakeholder oriented control systems and by examining some of the important stakeholder-related issues that are worthy of future scholarly and managerial attention.

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