Stakeholder Management Principles are broader concept of corporate
management that supersedes the traditional ownership model.
Traditionally, companies have been viewed as being only responsible to
their owners, who are typically the shareholders in companies of any
size.
As companies have gained in size and power, frequently equaling or
even bettering the power of national governments, and corresponding
abuses of employees, the environment, and communities have occurred,
ethicists have realized that the ownership model of corporate
governance is no longer acceptable.
The stakeholder model views corporations as being not only answerable
to their shareholders, but also having responsibility to not cause
harm to employees, environment, customers, and the communities in
which they exist. Stakeholder management principles require managers
to incorporate the legitimate concerns of stakeholders in a broad
sense into their managerial decisionmaking.
A formal definition of this view: "The corporation is an organization
engaged in mobilizing resources for productive uses in order to create
wealth and other benefits (and not toi ntentionally destroy wealth,
increase risk, or cause harm) for its multiple constituents, or
stakeholders."
The above quotation, along with additional information, can be found
at "What Is The Corporation?"
http://www.sup.org/html/book_pages/0804743045/Excerpts/Chapter_1.pdf
Please request clarification if needed.
Sincerely,
Wonko |
,
0 Comments
)