Laws Stakeholders Theory And Practice Pdf


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contribution of Stakeholders: Theory and Practice is not, as for Freeman http:// Request PDF on ResearchGate | On Jan 1, , Friedman AL and others published Stakeholders: Theory and Practice. Strategic Management of Stakeholders: Theory and Practice. Article (PDF Available) in Long Range Planning 44(3) · June with.

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change management practice. 2. Basic idea of the Stakeholder Theory and Definition. The traditional definition of a stakeholder is “any group or individual who. Stakeholders: Theory and. Practice. Fran Ackermann and Colin Eden. This article explores reactions to its utility e was grounded in both theory and practice. Get Instant Access to PDF File: Read D0wnl0ad. Online Free Now eBook Stakeholders Theory. And Practice By Andrew L Friedman PDF. EBOOK EPUB.

For example, Henriques and Sadorsky found that the perception of interests and environmental demands of particular interest groups did significantly influence the level of environmental commitment adopted by companies in their practices.

For these reasons, Phillips, Freeman, and Wicks proposed to adapt and modernize stakeholder's theory into a version able to capture and simplify these groups into five internal categories: financial control agents e. Phillips also proposes six specific external groups: the Government, environmental organizations, NGOs, professional critics or experts, the media and others in general citizens, local or those which affect or will be affected by companies.

The reason why these groups may have an influence on the company, although they do not control essential resources, is explained by the legitimacy concept Lee, This idea leads us to uncover a natural and complementary theoretical link between institutional theory and stakeholder approach, given the influence that interest groups could have on the implementation of socially responsible behaviour required of the companies by society.

Influence of institutional and stakeholder perspectives in the introduction of socially responsible behaviours. In this way, the institutional pillars proposed by DiMaggio and Powell , reflect how the pressure on companies may condition their decisions in terms of social responsibility actions.

According to Clarkson , it will be necessary to distinguish and consider the influence they can further exert upon external groups affected by or affecting business activity interest. Internally, the micro-context would consist of those domestic interest groups with links to the company, able to exercise power over decisions on social responsibility as expressed in Fig.

The next section provides a structured review of the main contributions that have helped with the practical institutionalization among companies of socially responsible behaviour, facilitating its understanding and importance in the process of analyzing and responding to the pressures exerted by the environment and stakeholders of the company.


Institutionalization of corporate social responsibility Since the seventies, international organizations such as the Committee for Economic Development CED, have attempted to demonstrate the importance that social responsibility as a management model can exercise on growth and sustainability of companies in society. To achieve this process, CED proposes three key functions that companies must undertake to behave responsibly according to their role in society: i an internal function of an economic nature aimed at the distribution of products and services that will generate jobs and inject income into the community; ii an intermediate function that meets the expectations, values and social priorities of the stakeholders and iii an external function, which tries to reduce social and environmental imbalances in society.

The characterization of these three commitments by the CED banishes simplified concepts of social responsibility that are defined only as isolated philanthropic actions or donations made by companies to legitimize their activities. Additionally, the CED proclaims that social responsibility must become a tool that helps companies to express their willingness to be part of the social and economic system in which they exist.

In the late eighties and early nineties, an international institution known as the World Commission on Environment and Development WCED ratified in the Brundtland Report , and later at the Earth Summit in Rio de Janeiro two important elements. On the one hand, the importance of studies by academics from the early seventies on sustainable and responsible behaviour undertaken by companies and, on the other hand, the relevance of meeting the needs and aspirations of the present without compromising the resources and capabilities available in the future.

The contributions of the WCED underlies that the economic growth of companies must be underpinned by developing solutions to eliminate the main common problems that impact daily on society, like environmental contamination pollution, non-renewable energy, lack of recycling, etc. In the late nineties and early twenty-first century it will be the World Business Council for Sustainable and Development WBCSD which is positioned as a global partnership dedicated to exploring sustainable development alternatives for companies, sharing knowledge, experiences and efficient practices.

The power and impact of this partnership lies in its cooperation with governments, NGOs and intergovernmental organizations, running and financing the business projects of energy efficiency and corporate sustainability. According to the WBCSD CSR can be understood as a commitment of business to contribute to sustainable economic development, working with employees, their families, the local community and society at large to improve the quality of life of their groups.

This definition has placed more emphasis on the need to pursue the balanced and sustainable development of enterprises, highlighting specifically facets like the defining of employees and their families as a decisive interest group as well as the community in which enterprises operate.

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Concretely, within a European framework, the contribution of the Green Book on CSR is decisive, as prepared by the Commission of the European Communities 3 , which aims to promote corporate social responsibility at European and international level through the development of innovative practices, increased transparency and assessment tools to validate social responsibility among firms.

In this respect the Green Book of CSR understands social responsibility as the voluntary integration by companies of social and environmental concerns in their business operations and their relationships with their partners. Therefore, this European initiative highlights the altruistic value of social responsibility actions, and its progressive support at European level. As a consequence of the gradual increase of definitions of CSR, not only by academics but also by institutions, Van Marrewijk emphasizes the multidisciplinary breadth and scope of CSR as well as a certain solid base of these contributions based on the support of institutional and stakeholder theories.

Therefore, Van Marrewijk understands CSR as a tailored process in which each organization should select specific sustainability goals to adapt to the changes and challenges of the environment.

Stakeholder theory

Similarly, McWilliams, Siegel, and Wright argue that corporate social responsibility acts as an enabler for companies involved, according to their characteristics and objectives, social and environmental actions as well as other emerging demands of society, the industry and community.

The above statements highlight how the size or organizational structure of a company may affect the definition of CSR objectives.

In an attempt to extract commonalities and consensus in the literature regarding a definition of CSR, the bibliometric analysis conducted by Dahlsrud highlights that all of the definitions set up until this year have three points in common: i the importance given to the stakeholders; ii the voluntary degree of CSR actions by companies and iii the reference to these actions representing a set of social, economic and environmental obligations, and the association of these commitments with sustainable development.

According to Dahlsrud after analyzing 37 definitions of CSR, there is no description arising out of optimum performance derivative actions on social responsibility, and how those can affect the decision making of the company. From the work of Van Marrewijk and Dahlsrud it can be extracted that the term CSR has evolved in parallel with the environment and the expectations of society in business.

Taking into consideration the conclusions of the previous authors, and in line with the stakeholders and institutional approaches, this research promotes as a most suitable the definition of CSR by the European Commission which understood CSR as the process of integration in the organizational activities of social, environmental, ethical and human concerns from their interest groups, with two objectives: 1 to maximize value creation for these parts, and 2 to identify, prevent and mitigate the adverse effects of organizational actions on the environment.

The conceptualization of the European Commission highlights the importance of stakeholders, the need to create value for them as well as to respond to environmental or institutional pressures, trying to prevent the consequences of organizational actions. After this review of the concept CSR, we can state that there is no consensus on the definition of social responsibility.

Additionally, a coherent and consistent pattern is appreciable in the conceptual proposal regarding CSR in the literature, describing a phenomenon increasingly latent in society, although there are still no tools or guidance on how to manage its effects. Indeed, there remains a distinct need for continuing to analyze the impacts of CSR on organizational performance.

Conclusions, discussion and future lines The review and analysis of the literature reveals the importance of carrying out socially responsible behaviour as a strategy of legitimation and survival for companies, basing this process on the basis of two main approaches such as institutional theory and the stakeholder approach. So far, many studies have reported the separate importance of these theoretical approaches where the relevance of socially responsible actions are concerned.

Nevertheless, these works do not conclude that these approaches can act as complementary and may provide a significant degree of explanation of why companies adopt social responsibility practices, and the value derived from these actions for the stakeholders.

Using this double theoretical approach, it can be argued that response to pressures and economic, social, ethical and environmental requirements of different stakeholders of the company that make up its environment, help to increase organizational competitiveness. However, despite the evidence and theoretical advances, there is a high heterogeneity and inconsistencies regarding the measurement of actions and results derived from an empirical point of view. In the meta-analysis made by authors such as Allouche and Laroche , Moneva and Ortas and Orlitzky, Schmidt, and Rynnes a number of limitations can be extracted that represent opportunities for future contributions in the field of corporate social responsibility at theoretical and empirical terms: i The lack of a single theoretical framework, which contributes to the theoretical dispersion phenomenon, is difficult to study and further research can begin prior contrasted with a support; ii The use of a wide variety of population sizes, sectors, countries , which avoid the generation of inferences in statistical terms; iii Methodological shortcomings in measuring the impact of social responsibility actions on financial performance.

Considering that CSR represents an intangible construct or latent variables of great complexity in its measurement, it is very difficult to find practical tools to provide an efficient support by researchers to compare the results of these actions on the profitability and performance of the company; iv The need to analyze the longitudinal basis of the relationship between social responsibility activities and performance indicators.

The reason is that these social actions, until they are perceived and treated as actions that create value for stakeholders, requires a ripening period, which necessitates measuring this reaction in a large temporary space, which can be about two or three years.

Regarding the limitations exposed, it is necessary to continue exploring the external and internal effects of CSR actions in tangible variables economic and financial results , and intangible variables innovation, intellectual capital, organizational reputation.

Within these intangible effects, it will be extremely relevant to examine how corporate social responsibility can generate shared value. According to Porter and Kramer , the term-shared value involves creating economic value in a way that also creates value for society by addressing its needs and challenges. Considering the approaches reviewed in the current article, the concept of shared value is implicitly related to the essence of institutional perspectives and stakeholders, trying to provide a value in response to the needs and requirements of society and stakeholders.

Stakeholders : Theory and Practice download pdf

This value must go beyond the actual economic value, trying to create social and environmental value, helping companies to set goals that can ensure sustainability and an adequate future for all its citizens. References R. Aguilera, D. Rupp, C.

Theoretical monographs that comprehensively deal with a single theory … Research Interests: International management, corporate social responsibility, business and accounting, international accounting and finance, stakeholder theory, management and practice For more on Samantha Miles click here. Theory and Practice. Another approach to the stakeholder concept is the so called descriptive stakeholder theory.

Theory and Practice by Andrew L. Friedman, Samantha Miles There is extensive discussion of the concept of the stakeholder in fields such as Management, Corporate Governance, Accounting and Finance, Strategy, Sociology, and Politics, and in wider public policy debate.

Stakeholder theory

The network representation reveals how those stakeholders that are influenced by, and can influence, a large number of others are the key stakeholders to monitor Krackhardt and Hanson, , and also shows clusters of stakeholders where there may be possibilities for coalition building. Theory and Practice — Ebook written by Andrew L. Friedman, Samantha Miles.

Download for offline reading, highlight, bookmark or take notes while you read Stakeholders: Friedman and Samantha Miles.Edward Freeman had an article on Stakeholder theory in the California Management Review in early , but makes no reference to Mitroff's work, attributing the development of the concept to internal discussion in the Stanford Research Institute.

Additionally, Donaldson and Preston propose another three trends to examine and analyze stakeholders management with accuracy: i the descriptive approach, which aims to explain that companies are defined by a broad set of different interests that must be balanced, a process that can induce better or worse results; ii the instrumental approach, which explains how the stakeholder management of the company is an instrument or a tool to meet specific, traditional organizational goals: profitability, stability and growth and iii the normative approach, supported by the fact that the management and satisfaction of stakeholder interests should be the main goal to be achieved by the company, leaving economic benefits in second place.

According to Dahlsrud after analyzing 37 definitions of CSR, there is no description arising out of optimum performance derivative actions on social responsibility, and how those can affect the decision making of the company. Theory and Practice stakeholders is likely to have a powerful effect on the feasibility of an organization achieving its stra- tegic goals and thus helping assure its long-term viability.

Until the morning they find Chapter 2 discusses the ideas of Dilthey, who maintains that understanding in the humanities is fundamentally different from explanation in the natural sciences, Stakeholders : Theory and Practice free download pdf and who presents a methodology to judge what another person means or feels by means of their language and also their gestures, facial expressions, and manners of acting.

The situation experienced in this period led authors such as Weber and Clark to express the need to educate businesspeople towards a new framework of social responsibility. Williams, J.

Additionally, the CED proclaims that social responsibility must become a tool that helps companies to express their willingness to be part of the social and economic system in which they exist.

This book provides an analysis, classification, and critique of the various strands of theory about stakeholders. Thirdly, the convergent approach which stands as an intermediate trend from both previous approaches.

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