A quick look at what is happening in the corporate world makes it clear that the stakeholder idea is alive, well, and flourishing; and the question now is not “if ” but “how” stakeholder theory will meet the challenges of its success. Does stakeholder theory’s “arrival” mean continued dynamism, refinement, and relevance, or stasis? How will superior stakeholder theory continue to develop? In light of these and related questions, the authors of these essays conducted an ongoing dialogue on the current (...) state and future of stakeholder thinking. Beginning with a review of research and theory that has developed since the major stakeholder theorizing efforts of the 1990s, the authors individually offer their perspectives on the key issues relevant today to stakeholder thinking, and to suggest possible approaches that might lead toward and enable the continuing development of superior stakeholder theory. (shrink)

Distinguishing “business” concerns from “ethical” values is not only an unfruitful and meaningless task, it is also an impossible endeavor. Nevertheless, fruitless attempts to separate facts from values produce detrimental second-order effects, both for theory and practice, and should therefore be abandoned. We highlight examples of exemplary research that integrate economic and moral considerations, and point the way to a business ethics discipline that breaks new ground by putting ideas and narratives about businesstogetherwith ideas and narratives about ethics.

When it first appeared in 1979, Philosophy and the Mirror of Nature hit the philosophical world like a bombshell. In it, Richard Rorty argued that, beginning in the seventeenth century, philosophers developed an unhealthy obsession with the notion of representation: comparing the mind to a mirror that reflects reality. Rorty's book is a powerful critique of this imagery and the tradition of thought that it spawned. Thirty years later, the book remains a must-read and stands as a classic of twentieth-century (...) philosophy. Its influence on the academy, both within philosophy and across a wide array of disciplines, continues unabated. This edition includes new essays by philosopher Michael Williams and literary scholar David Bromwich, as well as Rorty's previously unpublished essay "The Philosopher as Expert.". (shrink)

Stakeholder theory has become a central issue in the literature on business ethics / business and society. There are, however, a number of problems with stakeholder theory as currently understood. Among these are: 1) the lack of a coherent justificatory framework, 2) the problem of adjudicating between stakeholders, and 3) the problem of stakeholder identification. In this essay, I propose that a possible source of obligations to stakeholders is the principle of fairness (or fair play) as discussed in the political (...) philosophic literature of Rawls, Simmons, and Cullity among others. The principle of fairness states that, “Whenever persons or groups of persons voluntarily accept the benefits of a mutually beneficial scheme of co-operation requiring sacrifice or contribution on the parts of the participants and there exists the possibility of free-riding, there exist obligations of fairness on the part of these persons or groups to co-operate in proportion to the benefits accepted.” In this essay I discuss the gaps in the current stakeholder literature, elucidate and defend a principle of fairness that fills the gap, compare the fairness model to other similar models of business ethics, and draw some conclusions for the future of stakeholder theory. (shrink)

Stakeholder theory has become one of the most important developments in the field of business ethics. While this concept has evolved and gained prominence as a method of integrating ethics into the basic purposes and strategic objectives of the firm, the authors argue that stakeholder theory has retained certain “masculinist” assumptions from the wider business literature that limit its usefulness. The resources of feminist thought, specifically the work of Carol Gilligan, provide a means of reinterpreting the stakeholder concept in a (...) way that overcomes many of the existing limitations. This reading provides a different understanding of the identity and meaning of the firm, specifically in terms of its relationship to stakeholder groups and what it means for a firm to succeed. The alternatives proposed also converge with recent trends in the wider management literature and provide practical guidance for firms which face a myriad of challenges in the increasingly complex and global marketplace. (shrink)

The purpose of this paper is to enter the conversation about stakeholder theory with the goal of clarifying certain foundational issues. I want to show, along with Boatright, that there is no stakeholder paradox, and that the principle on which such a paradox is built, the Separation Thesis, is nicely self-serving to business and ethics academics. If we give up such a thesis we find there is no stakeholder theory but that stakeholder theory becomes a genre that is quite rich. (...) It becomes one of many ways to blend together the central concepts of business with those of ethics. Rather than take each concept of business singly or the whole of “business” together and hold it to the light of ethical standards, we can use the stakeholder concept to create more fine-grained analyses that combine business and ethics; or more simply, we can tell many more, and more interesting, stories about business. (shrink)

Abstract:The term stakeholder is a powerful one. This is due, to a significant degree, to its conceptual breadth. The term means different things to different people and hence evokes praise or scorn from a wide variety of scholars and practitioners. Such breadth of interpretation, though one of stakeholder theory’s greatest strengths, is also one of its most prominent theoretical liabilities. The goal of the current paper is like that of a controlled burn that clears away some of the underbrush of (...) misinterpretation in the hope of denying easy fuel to the critical conflagration that would raze the theory. We aim to narrow its technical meaning for greater facility of use in management and organizational studies. By elaborating a number of common misinterpretations – critical and friendly – of the theory, we hope to render a stronger and more convincing theory as a starting place for future research. (shrink)

Many writers in the field of business ethics seem to have accepted R. Edward Freeman’s argument to the effect that what he calls “the separation thesis,” or the idea that business and morality can be separated in certain ways, should be rejected. In this paper, I discuss how this argument should be understood more exactly, and what position “the separation thesis” refers to. I suggest that there are actually many interpretations (or versions) of the separation thesis going around, ranging from (...) semantic, empirical and reformative to some which are straightforwardly normative. While it is generally agreed that the separation thesis should be rejected, then, there is not as much agreement on what this thesis actually says. I suggest that whether or not we should<br>reject the separation thesis, however, ultimately must depend on how we understand it more exactly—on certain interpretations, the thesis comes out as more or less trivially false, but we should demand more evidence or argument to reject it on certain other interpretations. This result presents a challenge for all those writers who are committed to the rejection of the separation thesis. (shrink)

In these eloquent essays, articles and lectures, Rorty gives a stimulating summary of his central philosophical beliefs and how they relate to his political ...

In this volume Rorty offers a Deweyan account of objectivity as intersubjectivity, one that drops claims about universal validity and instead focuses on utility for the purposes of a community. The sense in which the natural sciences are exemplary for inquiry is explicated in terms of the moral virtues of scientific communities rather than in terms of a special scientific method. The volume concludes with reflections on the relation of social democratic politics to philosophy.

At least since the publication of the monumental Strategic Management: A Stakeholder Approach (1984), the “stakeholder theory” originated by R. E. Freeman has engrossed much of the business ethics literature. Subsequently, some advocates have moved a bit too quickly and without proper definition or argument. They have exceeded Freeman’s intentions which are more libertarian and free-market than is often thought. This essay focuses on the versions of stakeholder theory directly authored or coauthored by Freeman in an effort to recover (1) (...) Freeman’s intentions and (2) the argumentative justification of stakeholder theory. It then argues that Freeman’s appeal to legal, economic, and ethical constraints ultimately produce arguments that are invalid. One can thoroughly support legislation constraining corporations or seeking to prevent age discrimination, market monopolies, and externalities and regret the extent that capitalism is heir to such shortcomings without it following that (1) business beneficiaries should be changed from stockholders to stakeholders and (2) the latter should be given serious decision-making power. Further, stakeholder theory neither defines nor battles any obvious opposition. Hence, it is difficult to see what it changes about business management. In short, stakeholder theory either changes too much about business, or nothing important at all (depending on one’s interpretation). Efforts to supplant or improve the reigning theory of capitalism will have to do better. (shrink)

Abstract:The purpose of this paper is to suggest that at least one strain of what has come to be called “stakeholder theory” has roots that are deeply libertarian. We begin by explicating both “stakeholder theory” and “libertarian arguments.” We show how there are libertarian arguments for both instrumental and normative stakeholder theory, and we construct a version of capitalism, called “stakeholder capitalism,” that builds on these libertarian ideas. We argue throughout that strong notions of “freedom” and “voluntary action” are the (...) best possible underpinnings for stakeholder theory, and in doing so, seek to return “stakeholder theory” to its managerial and libertarian roots found in Freeman (1984). (shrink)

This paper examines some of the paradoxes and dilemmas facing firms in the extractive sector when they attempt to take on a more stakeholder-responsive orientation towards issues of environmental and social responsibility. We describe the case of Shell and the Ogoni and attempt to draw out some of the lessons of that case for more sustainable operations in the developing world. We argue that firms such as Shell, Rio Tinto and others may well exhibit increasingly stakeholder-responsive behaviours at the corporate, (...) strategic level. However for reasons of strategy, lack of competency or institutional will this increasing level of corporate responsiveness may not be mirrored effectively in dealings between subsidiary business units and their most important direct stakeholders: for example local communities and in the developing world. We contrast the struggles of Shell to replicate its corporate stakeholder-responsiveness at the local level in Nigeria with the experiences of other firms that seem to have developed managerial capabilities at a somewhat deeper level throughout the firm with consequent benefits both for stakeholders and the business. (shrink)

In his presentation at the 1993 Society of Business Ethics conference, Ed Freeman offered a provocative explanation for why the normative core of business and society (B&S) research is perceived as fundamentally at odds with the pervasive wisdom on business and the academic literature on management (e.g., "business ethics is an oxymoron"). He termed this explanation the separation thesis. This article explores the possibility that the separation thesis captures a pervasively held view about corporations, even among B &S researchers. To (...) support this claim, the author looks at whether three value dichotomies, which provide the conceptual underpinnings of the separation thesis, are prevalent in the literature. The article provides evidence from the literatures in ethics, corporate social responsibility/ performance, and wider management issues to support its claims, and then looks at alternative possibilities for developing inquiry to avoid the pitfalls of these value dichotomies and, therefore, the separation thesis. (shrink)

Multiculturalism and “The Politics of Recognition.” An Essay by Charles Taylor with commentary by Amy Gutmann, editor, Steven C. Rockefeller, Michael Walzer, and Susan Wolf.

In this 1989 book Rorty argues that thinkers such as Nietzsche, Freud, and Wittgenstein have enabled societies to see themselves as historical contingencies, rather than as expressions of underlying, ahistorical human nature or as realizations of suprahistorical goals. This ironic perspective on the human condition is valuable on a private level, although it cannot advance the social or political goals of liberalism. In fact Rorty believes that it is literature not philosophy that can do this, by promoting a genuine sense (...) of human solidarity. A truly liberal culture, acutely aware of its own historical contingency, would fuse the private, individual freedom of the ironic, philosophical perspective with the public project of human solidarity as it is engendered through the insights and sensibilities of great writers. The book has a characteristically wide range of reference from philosophy through social theory to literary criticism. It confirms Rorty's status as a uniquely subtle theorist, whose writing will prove absorbing to academic and nonacademic readers alike. (shrink)

At least since the publication of the monumental Strategic Management: A Stakeholder Approach, the "stakeholder theory" originated by R. E. Freeman has engrossed much of the business ethics literature. Subsequently, some advocates have moved a bit too quickly and without proper definition or argument. They have exceeded Freeman's intentions which are more libertarian and free-market than is often thought. This essay focuses on the versions of stakeholder theory directly authored or coauthored by Freeman in an effort to recover Freeman's intentions (...) and the argumentative justification of stakeholder theory. It then argues that Freeman's appeal to legal, economic, and ethical constraints ultimately produce arguments that are invalid. One can thoroughly support legislation constraining corporations or seeking to prevent age discrimination, market monopolies, and externalities and regret the extent that capitalism is heir to such shortcomings without it following that business beneficiaries should be changed from stockholders to stakeholders and the latter should be given serious decision-making power. Further, stakeholder theory neither defines nor battles any obvious opposition. Hence, it is difficult to see what it changes about business management. In short, stakeholder theory either changes too much about business, or nothing important at all. Efforts to supplant or improve the reigning theory of capitalism will have to do better. (shrink)

How can liberal democracy best be realized in a world fraught with conflicting new forms of identity politics and intensifying conflicts over culture? This book brings unparalleled clarity to the contemporary debate over this question. Maintaining that cultures are themselves torn by conflicts about their own boundaries, Seyla Benhabib challenges the assumption shared by many theorists and activists that cultures are clearly defined wholes. She argues that much debate--including that of "strong" multiculturalism, which sees cultures as distinct pieces of a (...) mosaic--is dominated by this faulty belief, one with grave consequences for how we think injustices among groups should be redressed and human diversity achieved. Benhabib masterfully presents an alternative approach, developing an understanding of cultures as continually creating, re-creating, and renegotiating the imagined boundaries between "us" and "them." Drawing on contemporary cultural politics from Western Europe, Canada, and the United States, Benhabib develops a double-track model of deliberative democracy that permits maximum cultural contestation within the official public sphere as well as in and through social movements and the institutions of civil society. Agreeing with political liberals that constitutional and legal universalism should be preserved at the level of polity, she nonetheless contends that such a model is necessary to resolve multicultural conflicts. Analyzing in detail the transformation of citizenship practices in European Union countries, Benhabib concludes that flexible citizenship, certain kinds of legal pluralism and models of institutional powersharing are quite compatible with deliberative democracy, as long as they are in accord with egalitarian reciprocity, voluntary self-ascription, and freedom of exit and association. The Claims of Culture offers invaluable insight to all those, whether students or scholars, lawyers or policymakers, who strive to bridge the gap between the theory and practice of cultural politics in the twenty-first century. (shrink)

Richard Rorty's collected papers, written during the 1980s and now published in two volumes, take up some of the issues which divide Anglo-Saxon analytic philosophers and contemporary French and German philosophers and offer something of a compromise - agreeing with the latter in their criticisms of traditional notions of truth and objectivity, but disagreeing with them over the political implications they draw from dropping traditional philosophical doctrines. In this volume Rorty offers a Deweyan account of objectivity as intersubjectivity, one that (...) drops claims about universal validity and instead focuses on utility for the purposes of a community. The sense in which the natural sciences are exemplary for inquiry is explicated in terms of the moral virtues of scientific communities rather than in terms of a special scientific method. The volume concludes with reflections on the relation of social democratic politics to philosophy. (shrink)

"The lectures that follow were delivered at the Lowell Institute in Boston in November and December, 1906, and in January, 1907, at Columbia University, in New York."-Preface, pg. 3.

This book describes a new method of consulting the public that has been tried successfully around the world. The book combines the theory of democracy with actual practice. Fishkin lays out a theory of "deliberative democracy" and shows with practical examples, how it can be realized.

Noted psychologist and philosopher develops his own brand of pragmatism, based on theories of C. S. Peirce. Emphasis on "radical empiricism," versus the transcendental and rationalist tradition. One of the most important books in American philosophy. Note.

In Human Nature and Conduct, first published in 1922, Dewey brings the rigor of natural sciences to the quest for a better moral system.

We argue that though stakeholder theory has much to recommend it, particularly as a heuristic for thinking about business firmsproperly as involving the economic interests of other groups beyond those of the shareholders or other equity owners, the theory is limited by its focus on the interests of human participants in business enterprise. Stakeholder theory runs into intractable philosophicaldifficulty in providing credible ethical principles for business managers in dealing with some topics, such as the natural environment,that do not directly involve (...) human beings within a business firm or who engage in transactions with a firm. Corporate decision-makingmust include an appreciation of these ethical values even though they cannot be captured in stakeholder theory. (shrink)

Lack of specificity around stakeholder identity remains a serious obstacle to the further development of stakeholder theory andits adoption in actual practice by business managers. Nowhere is this shortcoming more evident than in stakeholder theory’s treatment of the constituency known as “community.”In this paper we attempt to set forth what we call “the Problem of Community” as indicative of the definitional problems of stakeholdertheory. We then begin the process of gaining greater specificity around our notions of community and the role (...) of community in stakeholder theory and management. In doing so, we identify the emergence of two fairly new forms of community that we believe are particularly relevant to the stakeholder theorist and practicing manager. These two new variants of community—the virtual advocacy group and the community of practice—extend the notion of community in new directions, which have strikingly different implications for stakeholder theory and practice. (shrink)