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Topic: |
Business
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Number of pages / Number of words: |
4 / 996 |
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In a normative sense, stakeholder theory strongly suggests that overlooking these other stakeholders is (a) unwise or imprudent and/or (b) ethically unjustified. To this extent, stakeholder theory participates in a broader debate about business and ethics: will an ethical company be more profitable in the long run than a company that looks only to the "bottom line" in any given quarter or year? Those who claim that corporate managers are imprudent or unwise in ignoring various non-stockholder constituencies would answer "yes...
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The corporation is not so much a "natural" individual, in this view, but is rather constructed legally and politically as an entity that creates social goods. Robert Reich has noted that for many years, the tacit assumption of both corporate chiefs and U.S. political leaders was that "the corporation existed for its shareholders, and as they prospered, so would the nation...
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