Stakeholder Capability Enhancement as a Path to Promote Human Dignity and Cooperative Advantage

Abstract

Promoting dignity is at the heart of the human capability approach to development. We introduce the concept of stakeholder capability enhancement, beginning with a discussion of the capability approach to development proposed by Sen ( 1985 ) and further advanced by Nussbaum ( 1990 ) to incorporate notions of dignity. Thereafter follows a review of the literature on value creation stakeholder management and convergent stakeholder theory (Freeman, 1984 ; Freeman, Harrison, Wicks, Palmer, & DeColle, 2010 ;Harrison & Wicks, 2013 ;Jones & Wicks, 1999 ), as the foundation for our concept of stakeholder capability enhancement. The remainder of this article develops a model that integrates stakeholder management with the human capability approach to detail the cooperative advantage that accrues to business and its stakeholders, as well as the gains in social wellbeing and dignity, when stakeholder capability enhancement becomes a common enterprise strategy. The model also explores the risks and boundary conditions fi rms face when seeking to profi t from stakeholder capability tradeoffs. In explaining the model, we explore normative responsibilities and consequences with regard to human capabilities and dignity. We conclude with implications for future research.

Justice and Corporate Governance: New Insights from Rawlsian Social Contract and Sen’s Capabilities Approach

“…9 Westermann-Behaylo et al (2016) also argue that firms have an effect on the human dignity and capability of their stakeholders and advance a management model grounded in stakeholder theory integrated with Sen's concept of capabilities. The idea is that "a firm can include the capabilities approach in its overall strategy and operations"(p. 534).…”

“…Examples are the works investigating the impact of corporations on human well-being, focusing on the enterprise's goals and consequences in terms of capabilities and functionings (Shrivastava and Selvarajah 2016;Garriga 2014;Renuard 2011). Moreover, CA has received attention from the management literature focused on labor market issues and employees' welfare; see Westermann-Behaylo et al (2016) for a brief review. Westermann-Behaylo et al (2016) also contribute to the debate by appealing to Sen's CA in the context of stakeholder management and CG.…”

“…Moreover, CA has received attention from the management literature focused on labor market issues and employees' welfare; see Westermann-Behaylo et al (2016) for a brief review. Westermann-Behaylo et al (2016) also contribute to the debate by appealing to Sen's CA in the context of stakeholder management and CG.…”

Firms, Ex-offenders, and Communities: A Stakeholder Capability Enhancement Perspective

“…Employment-based reentry programs, which partner with firms to open up employment opportunities for ex-offenders, may also enhance their capabilities in important ways. When employers engage with these organizations to recruit and hire exoffenders, they expand the capabilities of employment-based reentry programs and the employees within these organizations, specifically with respect to imagination, thought, and emotions (Westermann, Behaylo et al, 2016). For those employees working within employment reentry organizations, helping ex-offenders secure work and reintegrate into society can fulfill personal values and goals and be an important Firms, Ex-offenders, and Communities 505 source of meaning and dignity in their lives.…”

Guest Editors’ Introduction:Human Dignity and Business

“…Finally, in the last contribution “Stakeholder Capability Enhancement as a Path to Promote Human Dignity and Cooperative Advantage,” Michelle Westermann-Behaylo, Harry van Buren, and Shawn Berman (2016) explore how the concept of dignity can inform engagement not only with workers but with all stakeholders. In their article, the authors explore a stakeholder capability approach and argue that stakeholder capability enhancement is a path toward the promotion of human dignity.…”