Business Ethics and Stakeholder Analysis

Abstract

Much has been written about stakeholder analysis as a process by which to introduce ethical values into management decision-making. This paper takes a critical look at the assumptions behind this idea, in an effort to understand better the meaning of ethical management decisions.A distinction is made between stakeholder analysis and stakeholder synthesis. The two most natural kinds of stakeholder synthesis are then defined and discussed: strategic and multi-fiduciary. Paradoxically, the former appears to yield business without ethics and the latter appears to yield ethics without business. The paper concludes by suggesting that a third approach to stakeholder thinking needs to be developed, one that avoids the paradox just mentioned and that clarifies for managers (and directors) the legitimate role of ethical considerations in decision-making.So we must think through what management should be accountable for; and how and through whom its accountability can be discharged. The stockholders’ interest, both short- and long-term, is one of the areas. But it is only one.Peter Drucker, 1988Harvard Business Review

A Stakeholder’s Perspective on Human Resource Management

“…Stakeholder theorists propose different categories of stakeholders. These can be distinguished into voluntary and involuntary (Clarkson, 1995), primary or secondary (Carroll, 1979), strategic or moral (Goodpaster, 1991). These actors can be formally or informally involved in the company.…”

The donor–beneficiary charity accountability paradox: a tale of two stakeholders

“…Interestingly, in a corporate context, Goodpaster's (1991) stakeholder analysis contrasts with the instrumental view that privileges shareholders as providers of finance. He advocates a 'multi-fiduciary' stakeholder orientation that considers stakeholders beyond those having economic power and, while managers who pursue this approach may face resistance from those who believe that an instrumental orientation is the only 'legitimate' one for businesses, this Stakeholder Paradox is defended on ethical grounds.…”

Les questions de gouvernance dans les entreprises socialement responsables

“…Elle apporte, en cela, le cadre théorique qui faisait défaut au concept de responsabilité sociale de l'entreprise (Donaldson et Preston, 1995). Elle confère donc à l'entreprise des responsabilités étendues autres que de servir au mieux les actionnaires puisqu'elle induit des responsabilités envers les parties prenantes (Goodpaster, 1991). La RSE peut être lue comme une traduction contemporaine du modèle stakeholder.…”