Key Tips For A Generous Financial Donations

Key Tips For A Generous Financial Donations
STAKERHOLDERKEY TIPS
(1)Community
Stakeholdersa. Generous financial donations
b. Innovative giving
c. Support for education and job training programmes
d. Direct involvement in community projects and affairs
e. Community volunteer programmes
f. Support for the local community
g. Campaigning for environmental and social change
h. An employee–led approach to philanthropy
i. Efficient and effective community activity
j. Disclosure of environmental and social performance
(2)Environment Stakeholdersa. Environmental policies, organisation and management
b. Materials policy of reduction, reuse and recycling
c. Monitoring, minimizing and taking responsibility for releases
d. the environment
e. Waste management
f. Energy conservation
g. ... Show more content on Helpwriting.net ...
Good rate of long–term return to shareholders
b. Disseminate comprehensive and clear information
c. Encourage staff ownership of shares
d. Develop and build relationships with shareholders
e. Clear dividend policy and payment of appropriate dividends
f. Corporate governance issues are well managed
g. Access to company's directors and senior managers
h. Annual reports provide a picture of the company's performance i. Clear long–term business strategy

j. Open communication with financial community
Source: (Spiller, 2000, pp. 153–154)
All the companies need a tool to exam their social performance (Hanson, 1995). The Spiller's (2000) CSR model provide a tool that the corporation can
diagnose their performance. And it can combine various management technologies to develop the performance of the corporations. On the other hand,
it offered a tool to exam employee satisfaction (Spiller, 2000).
There are four main principles in Spiller's CSR model: Honesty, Fairness, Caring, and Courage.
First principle is honesty, which lying in the heart place of CSR model. The wise decision of the companies and the modern economic market all need
honest (Spiller, 2000). The participants in the transaction will be deceived if the company lack of honest. Furthermore, the business system will also
be impact if the company lack of honest (Solomon, 1992). Second principle is fairness. This principle requires the companies keep fairness with other
relationships, which
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Stakeholder Theory Of The Firm
Even though the stakeholder theory of the firm served as a comprehensive fundamentally solid concept for corporate social responsibility to branch out
of; without the stakeholder theory of the firm there is no corporate social responsibility and vice versa, because business cannot exist without society
and society is not sustainable without business, due to advancements in the modern world, business and society have evolved, and traditional business
theories have a narrow business scope, while contemporary perspectives have a broader approach.
First, Without the stakeholder theory of the firm there is no corporate social responsibility and vice versa, because business cannot exist without society
and society is not sustainable without business. According to R. Edward Freeman 1984, the stakeholder theory of the firm is about a conceptualised
thought of how a firm works and creates value (youtube video). So, in order for us to understand what the stakeholder theory of the firm is about first
the components of the theory should be defined. Stakeholders are groups or individuals who affect or are affected by the operations and or decisions of
the organisation and contribute or are a necessity to the success or failure of the organisation. Stakeholders can be owners, managers, suppliers,
employees, communities, financiers, government, non–profit bodies and customers even sometimes competitors (Freeman). Next, a firm is an
establishment or a number of establishments that buy,

Freeman vs. Friedman
Freeman vs. Friedman In their theories of how a business should operate, R. Edward Freeman and Milton Friedman hold virtually opposite beliefs as
to what businesses' responsibilities should be. In favor of the Stakeholder theory, Freeman believes that any person or organization that has a "stake" in
the business should also play a role of participation in the business's actions and decisions. In the other corner of the ring stands Milton Friedman, who
holds the belief that said business is only responsible for those that actually own stock in the business – the owners, or stockholders. A strong believer in
his reconceptualized Stakeholder Theory of the Modern Corporation, R. Edward Freeman believes the key to success in business is ... Show more
content on Helpwriting.net ...
Nowadays, after the passing of several bills constraining the actions of corporations, acting in a similar manner would pose several legal and ethical
issues. This is why, Freeman argues, this ancient idea of managerial capitalism is no longer effective. After bashing the old idea of managerial
capitalism, Freeman starts explaining why his reconceptualized stakeholder concept is much more logical. Freeman modestly articulates a
stakeholder theory using the "narrow definition" of a stakeholder, which includes those who are vital to the success and survival of a corporation.
Specifically, these stakeholders include owners, management, suppliers, employees, customers, and the local community. As well as being directly
connected with the corporation, Freeman argues that the stakeholders are also interconnected with each other as well, and that each stakeholder is
vital to the survival of the corporation, and vice versa. Employees rely on the business to give them a paycheck; the business provides their
livelihood. Employees return the favor because they run the business on a day to day basis. Suppliers are vital to the firm's success because the
quality of the raw materials purchased will determine the quality and price of the final good produced by the firm. As a result, the firm is a customer
of their supplier, and is therefore vital to their supplier's success. The next stakeholder, customers,

Shareholder Theory Vs. The Competing Ideas Of Stakeholders...
Business development really relies on two parties, the buyer and the seller. without either of them you can never have a transaction. Today I am
going to examine a few proponents to this business cycle in relevance to shareholder theories versus the competing ideas of stakeholders theories. I
will not only develop a basis of each, I will take a deeper look into what the sole responsibility and how these action may affect business as a whole.
Finally I will take time to examine each and conclude with a personal justification to each. To make a profit, that 's what most would say is the end
goal in every business for the most part. Shareholder theory also related with stockholder theory providing a main emphasis on maximizing profit.
Maximize profit within the corporation with the the help of the appointed executives within the company. This theory avoid the aspect of moral
obligations and or socially responsible on the company 's dime. Much of this is to leave the company with smaller cost, cheaper goods and finally
hopefully a bigger customer base in the end due to lower cost. Products may be built cheaper rather than spending extra on certain aspects. An easy
example of this can is a company going with cheaper steel versus high grade steel because longevity is not a factor. While the sole emphasis within the
shareholder theory is to maximize profit, Stakeholders theory repeats that single idea but also add the responsibility label to it. Stakeholder theory is to
create

Essay on The Stakeholder Theory by Thomas Donaldson
A stake holder, in general is defined as an individual or organization likely affected by the performance of an organization. In "The stakeholder theory of
the corporation: Concepts, evidence, and implications" by Thomas Donaldson , he quotes Stanford research institution and calls stake holders "those
groups without whose support the organization would cease to exist."
Therefore a stakeholder can be thought of as some who both influences and is influenced by an organization. According to Greasley (1999, p9) there
are 3 types of stake holders: internal, connected and external.
Internal stakeholders are described as "the managers and employees of a company." Connected stakeholders are those that are beyond the immediate
boundaries ... Show more content on Helpwriting.net ...
However, for this scenario it will be assumed that the stakeholder concept stands, and hence will assume the stakeholder concept is infallible.
It will be assumed that the large mining company is publicly owned and is situated a more economically developed country (MEDC). Therefore the
company will have significantly weaker influence from the government than a government owned company. It will also imply that trade unions
associated with the company will likely be strong, hence workers will have higher influence than they would in a less economically developed country
(LEDC) where unions would be weaker .
The above assumptions will also help in identifying stakeholders within the mining company; stakeholders will be divided up into the 3 defined in
Greasley (1999, p9).
Firstly, internal stakeholders, those connected directly to the firm. This group include will account for anyone working within the firm. In the context
of the mining company, this includes people like miners, even jobs like those of a janitor in the building. However, it is important to note that it also
involves much more powerful stakeholders like senior management, who play a large role in the decisions made by the company.
Connected stakeholders, will include groups like shareholders, customers and suppliers

Stakeholders Theory, System Theories And Functionalist...
Theoretical conceptual framework
Conceptually, the three theories Stakeholders Theory, System Theories and Functionalist Theory of Attitudes, have a significant function that is
directly relating to this study. Stakeholders Theory emphasized the need for the effort to identify the public and consider those publics need. Similarly,
Systems theory also relates to the study in a sense that the theory emphasizes on the relationship and the structure of the organizations.
Functionalist Theory of Attitudes is an approach that explains the motivation of the public to exhibit certain attitudes. The theory approach shows that
we develop favorable attitudes toward activities that aid us or reward us and form a negative certain attitude toward the ... Show more content on
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Talking about social responsibility in research management, it should be recognized that there are not sufficient studies in this field as well (T. N.
Atkinson & D. S. Gilleland, 2007; J. W. Osborne & A. Holland, 2009). Social responsibility touches an institutional level, and individual responsibility
depends on institutional behavior. The institution's mission, strategic goals are related to the organizational structure and its implementation which
depends on employees' perceptions and attitude. An employer should think of employees and take actions at the institutional level to encourage social
responsibility in employee perceptions and attitudes.
Factors that Influence Perception
A person's awareness and acceptance of the stimuli play an important role in the perception process. Receptiveness to the stimuli is highly selective and
may be limited by a person's existing beliefs, attitude, motivation, and personality (Assael, 1995). Persons will select the stimuli that satisfy their
immediate needs and may disregard stimuli that may cause psychological anxiety. Perceptions is suggests as our sense about the world around us, and
it involves recognition of environment stimuli and action in response to these stimuli through perceptual process. The numbers of factors that operate
to shape and sometimes distort that is

Friedman vs Freeman
This paper will have a detailed discussion on the shareholder theory of Milton Friedman and the stakeholder theory of Edward Freeman. Friedman
argued that "neo–classical economic theory suggests that the purpose of the organisations is to make profits in their accountability to themselves and
their shareholders and that only by doing so can business contribute to wealth for itself and society at large". On the other hand, the theory of
stakeholder suggests that the managers of an organisation do not only have the duty towards the firm's shareholders; rather towards the individuals and
constituencies who contribute to the company's wealth, capacity and activities. These individuals or constituencies can be the shareholders, employees,
... Show more content on Helpwriting.net ...
Consequently, the model of stakeholder by Edward Freeman has broadly considered as the strongest theory regarding responsibilities of a company
towards society where the company is located (Freeman 2008 pp. 162–165). Nevertheless, Friedman pointed out that the profits has taken the firms in
to the hand of business intellectuals by which Friedman recommend that the financial system by which the organisation run its business is in the
restricted responsibility protection which makes the organisations to privatise their profits (Friedman 1970 pp. 177–184). Friedman also suggested that
according to him the shareholder theory in terms of socially responsible can only increase the profit. But on the other hand shareholder theory of
Edward Freeman completely support the theory of shareholder towards its role to be socially responsible in the society and maximising the profits for
the benefits of shareholders within the firms and society as well (Freeman 2008 pp. 162–165). According to Cosans (2009 pp. 391–399) with the
taking of limited liability (restricted responsibility) Friedman must have taken the business in a way to be socially affiliated and well–established as
well which also leads and supports the ethical and logical roots of CSR and for the re–establishment of the reliability to

Views on Corporate Social Responsibilities
Corporations practicing stakeholder management will be more sustainable. Discuss.
Introduction
The perceptivity of sustainability is both in the sense of achieving long–term success and as survivability of a corporation (Zink, Steimle & Fischer
2008). Dunphy, Griffiths and Benn (2003) conceive corporations as channels of social purpose, constructed within society to attain useful social
objectives. Henceforth, corporate social responsibility commits a significant role towards the sustainability of corporations. Both corporate social
responsibilities and sustainability, and its related concepts influence all aspects of business. Chandler and Werther (2010) acknowledge the
understanding of corporate social responsibilities as an ... Show more content on Helpwriting.net ...
(Crane et al 2008) Despite over three hundreds billion in revenue and over ten billion in profits in 2007, Walmart with the conception to provide the
best for consumers, dismissed the ethical customs towards its employees and stockholders. On top of that, in order to build its reputation,
environmental concerns claimed were put aside.
Though, Walmart is now sustainable and has picked up itself since then, consumers are still very concern and protesting against Walmart'scorporate
social responsibility.
For these reasons, corporations with classical governance are fundamentally associated with negative intentions. The lack of empirical evidence in
agency theory, the contemporary view on corporate social responsibilities and its stewardship theory will be discussing below.
Contemporary View on Corporate Social Responsibilities
The success of the corporation in corporate social responsibilities demonstrates how well it has been able to influence stakeholder concerns while
executing its business model. Carroll relates corporate social responsibility into a four level pyramid – economic, legal, ethical and philanthropic
responsibility, where his viewpoint is a hybrid between the classical and stakeholder view on corporate social responsibilities. (Chandler &
Werther 2010)
Abreast the

Stakeholder vs Stockholder Theory
Larry Chapman Business Ethics Exam Two The Stakeholder theory of a firm is made up into equal percentages on a pie chart, which is made up of
Financials, Suppliers, Employees, Customers and Communities. The Stockholder theory of a firm is made up by a pyramid structure consisting of
Labor, Management, CEO, Board and Stockholders. I believe the Stakeholder theory is less ethical than the stockholder theory in terms of
Libertarianism and Egoism. Libertarianism view points are that there is no direct harm, not infringing on rights, not breaking the laws, government
protection only, free market and charity. The Egoism viewpoint is to maximize long–term self–interest. The Stakeholder Theory is less ethical from the
Libertarianism... Show more content on Helpwriting.net ...
So far everyone has the same common goal and for one to achieve their own goal they must help the other to achieve their goal. The main driver
force of a company is the labor, which everything starts with them and flows into the shareholders. The Stockholder Theory is more ethical than
the Stakeholders Theory, because it must take a team and from the Utilitarianism viewpoint this creates greatest happiness due to everyone
achieving their goal to help others make their goal, which creates the greatest happiness. In terms of a Libertarianism view on sexual harassment
there is no direct harm, because what is harm? Is harm just emotions or actual harm as in dying? Sexual harassment has no direct harm in regards
of the person that is harassed will still be here after the harassment and not dead. It also does not infringe on rights, because we have the freedom of
speech and a lot of harassment is characterized as comments. Also there are no rights stated that sexual harassment is legal or not legal. Sexual
Harassment does not break the law, as in there is not a law for sexual harassment. A lot of people see it as unmoral and unethical, but still it does not
break the law. There is no such thing as in government protection in sexual harassment, because no laws or rights are stated. The free market and
charity does pertain to the sexual harassment. I believe Sexual Harassment does not exist in a Libertarianism view. Marketing is bad in terms of
Deontology due to it

Social Responsibility in Stakeholder Theory
Table of Contents 1. Introduction2 2. Social responsibility in stakeholder theory3 2.1 Why social responsibility?3 3. Limitations4 4. Case study
examples: Starbucks & Nike4 5. Conclusion5 6. References6 7. Appendixes9 Appendix A9 Appendix B10
1. Introduction
This report focuses on social responsibility issue focusing on stakeholder theory. Social responsibility will be introduced and defined based on
stakeholder theory. Next, analysis on the importance and limitations of social responsibility will be shown based on reputable published articles,
followed by examples of two successful companies on how social responsibility affects their business. Lastly, conclusion will be concluded based on
findings on ... Show more content on Helpwriting.net ...
Moreover, there is no evidence that engagement in social responsibility guaranteed better performance than company that focus on profitability, (Vogel,
2008).
4. Case study examples: Starbucks & Nike
According to Starbucks (2013), Starbucks had solidified net revenue of $13. 3 billion, an approximately 14 percent growth, (Appendix B) shows the
financial returns are consistently increasing over the years, Starbucks (2013). This net increase shows the good economic performance of Starbucks.
Solely economic performance is not sustainable, Starbuck understood the importance of emphasize on corporate social responsibility. Starbucks Global
Responsibility business strategy are synthesize with their culture and overall strategy. They focus on ethical sourcing that they see these plants as an
agricultural sustainability, whereby C.A.F.E (Coffee And Farmer Equity) are practiced for continuous improvement on productivity, social and
environmental aspects, Starbucks (2013). Other than positive corporate image, Starbucks is exposed to more business opportunity, for example one of
the world largest populations, India. Recently, Starbucks and Tata Coffee invested in a new plant in India, whereby the company sees it as an

Comparing Shareholder Theories Of Starbucks Corporation...
Introduction
The interests of shareholders were always the primary objective of the corporations, and the management primary duty was to maximise their financial
profit. According to Milton Friedman (1970), a corporate executive's only social responsibility is to create wealth for the shareholder and to conduct
the business in accordance with their desire. This perspective has been strongly challenged and modified due to the negative impact of the shareholder
theory. The global scandals and crises which have been caused by the extreme interpretation of the shareholder theory have led to the rising of the
stakeholder theory where the interests of the employees, the customers, and the local communities were taken into consideration and not been ignored
as previously.
Scandals at Enron, Starbucks, Google, and Samsung indicate towards the failure of the shareholder theory and triumph of stakeholder theory which lay
principles that manager's role is to stabilise financial interests of shareholders against the stakeholder interest. As per Laplume et al., (2008), the
shareholder and stakeholder theories are branches of corporate social responsibility's normative theories, where managers and executives of a
corporation must take decisions as per the 'right' theory.
This essay reviews the business examples of Starbucks Corporation (UK) and Southwest Airlines (USA) to evaluate the effect and application of both
the shareholder and stakeholder theories. It analyses the assertion that

Corporate Ethics Theory And Stakeholder Theory
One of many duties of a director is set under s131 of the Company Act 1993. This section of the act let know that directors must act in good faith and
in what the director believes is the best interest of the company. Traditionally, the word company foretold under this section have been regarded to
devote solely to the company's shareholders. However, this notion is seen as immoral. This is because according to the notion of corporate social
responsibility, business must behave ethically, represents a broader recognition of stakeholders and must take into account economic, social and
environmental inputs in the way it operates. Hence, people against the notion of shareholder primacy suggest that the director should also take into
account the interest of a wide range of shareholders (e.g. customers, employees, the society as a whole) in order to be deemed as moral. This
conflicting opinion raised the question, "To whom are the directors responsible?" This paper will explore a number of corporate governance practices
(i.e. agency theory and stakeholder theory) that are related to this issue. It begins with the explanation of each theory and the discussion of ethical and
societal concerns they put forward, followed by the advantage of shareholders and the disadvantage of other stakeholders regarding remedies of
director's breach of duty from a legal viewpoint and ends with a recommendation that would best reflect a good governance practice that is consistent
with the corporate

Discuss the Influential Role That Agency Theory,...
1. Introduction
The paper reviews three important theories in corporate governance, different theories using different terminology, and views corporate governance
from different perspective. Some articles are used to support these theories in this paper. From the Cadbury Report in 1992, we can get the information
that corporate governance is the system by which companies are directed and controlled, which involves a set of relationship between a company's
management, its board, its shareholders and other stakeholders, and the objectives for which the corporation is governed. There are mainly three
important theories included in corporate governance, which are agency theory, transaction cost theory and stakeholder theory, each theory views ...
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As we know, a corporation is basically has three sets of interest, they are Managers, stockholders and creditors. Stockholders often have conflicts with
both banks and managers, since their general priorities are different. Managers want quick profits that increase their own benefit, power and reputation,
while shareholders are more interested in slow and steady growth all the time. And the purpose of agency theory is to identify the conflict point among
corporate interest groups. Banks want to reduce risk while shareholders want to maximize profits reasonably. Managers also think about their own
interest. The fact that modern corporations are based on these relations creates costs in that each group is trying to control the others. Therefor agency
theory as a theory of corporate governance to help corporate alleviate the problems arising due to the separation of ownership and control.
3. Transaction cost theory 3.1 Theory
This discipline was initiated by Cyert and March's (1963) A Behavioral

Theories Of Stakeholder Salience
Stakeholder salience is a descriptive theory which is used to qualify the types of stakeholders, mapping who matters and is influential for the company.
The authors of this paper firstly believe that portfolio companies employees aren't valued enough by the Private Equity firms. In order to investigate
this statement, the stakeholder salience theory was chosen in order to analyze whether the implementation of the better CSR initiatives reporting could
enhance their salience.
The Theory of Stakeholder Identification and Salience by Ronald K. Mitchell, Bradley R. Agle and Donna J. Wood (1997) responds to the plethora of
definitions regarding what is a 'stakeholder' and the lack of consensus regarding 'Who and What Really Counts' in stakeholder ... Show more content on
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Mitchell et al. (1997) define power as the degree to which a stakeholder has or can use coercive (physical), utilitarian (material) or normative (prestige,
esteem and social) means to impose its will.
Reputation wise, Gifford (2010) claims that power is linked to reputation risks. Public or private statements, depending on how powerful they are,
affect the reputation of an organization. Hence, a successful engagement of the stakeholders may exert impact on reputation, through power.
LEGITIMACY is a generalized perception that the actions of an organization are desirable, proper or appropriate within some socially constructed
system of norms, values, beliefs and definitions (Mitchell et al., 1997). Within the salience model, legitimacy is divided into three types: individual,
organizational and societal legitimacy. Individual: depends on perceived professionalism, status and level of experience. It is the ability to build trust
and develop a good relationship with management. Organizational: is the level of credibility the organization enjoys in the market. Societal: is the
level of support the community express for the subject of

Blackmores Company Analyses
7001MKT Corporate Communications
Semester 1 2014
Assessment 1: Company Analysis
Blackmores Company Analysis
Table of Contents
Executive Summary3
1.1 Introduction to Blackmores4
1.2 Industry & Activities4
1.3 Blackmores Organisational Structure5
1.4 Media Presence5
1.5 Stakeholder theory6
1.6 Blackmores Stakeholders7
1.7 Corporate Identity Theory8
1.8 Blackmores Corporate Identity8
1.9 Corporate Identity Interpretation11
1.10 Conclusion12
References12
Executive Summary
Founded in the 1930's, Blackmores has grown to become Australia's leading brand ... Show more content on Helpwriting.net ...
They accomplish this by sourcing the highest quality ingredients from around the world, combined with innovative research and development to
deliver products that have become industry standards in the health supplements sector (Blackmores, 2014).
Blackmores manufacture, wholesale, distribute, market and retail their products creating a stable and reliable environment for the company to operate
(Blackmores, 2014). While Blackmores does retail some of their products the majority is distributed to naturopaths, pharmacies, health food stores,
supermarkets and mass merchants (Blackmores, 2014).

Blackmores is also committed to a strong business performance, with a strategic direction concentrated on delivering growth and continuous
improvement to increase and maintain their leading market position and to achieve continued success for the company and its stakeholders.
(Blackmores, 2014). They believe in growth by acquisition and diversification of products and market channels (Annual Report, 2013). By
diversifying, Blackmores ensure their company does not become reliant on a single product or line which can affect the stability and sustainability of
their business. Each year Blackmores invest over $2 million in research and development projects (Annual Report, 2013).
1.3 Organisational Structure of Blackmores
Blackmores is currently a publicly traded company with 16.97 Million shares valued

Freeman And Martin Shkreli
The primary sense of the term [business ethics] refers to recent developments and to the period, since roughly the early 1070s, when the term came
into common use in the United States" (George, Web). This means that business ethics has become a huge deal over the last recent years.
"Additionally, Martin Shkreli acted unethically when he raises the price of a useful drug to certain people who needed it to survive. One person that
would argue that Shkreli was acting unethical is R. Edward Freeman.
A website in the internet informs that Martin Shkreli was born to Albanian and Croatians immigrates, and he grew up with two sisters and a brother.
Moving one, the article states that Shkreli attended Hunter College High School and started interning ... Show more content on Helpwriting.net ...
Edward Freeman would believe just the opposite. Freeman believes the opposite of Friedman. Freeman argues the opposite by stating that "the basic
idea is that businesses, and the executives who manage them, actually do and should create value for customers, suppliers, employees, communities,
and financiers [or shareholders]" (Freeman, 39). This passage suggest that Freeman believes in the stakeholder theory, and that a stakeholder can be
anyone: an employee, a customer, the community, etc. Freeman counter argument to Friedman is that Shkreli forgot the most important rule in
modern business, "The customer is always right." Friedman theory might have been ethical to use in the old days, but in recent years a business
being ethical includes taking it customers opinion into account. Friedman fail to realize that workers and employees play a huge role in business
making profit. Additionally, the web states that "For decades, there wasn't any competition to Daraprim for the simple reason that there wasn't much
money to made selling it" (McLean, Web). This is yet another prove that Shkreli didn't had a reason to raise its price. Because they have no
competition, then they didn't have a reason to raise it price. "He acquired the U.S. rights to a lifesaving drug and promptly boosted its price over
5,000 percent" (Mclean, Web). All things consider, it is understandable that the drug cost money to make, but raising the price to 5000% is
outrageously high. For this reason, I believe that if he would have just double the price, it would have been such a huge deal/unethical. Moving one, in
Freedman's eye Shkreli failed to take his customers into account, and what is worst he hasn't apologized to its customers. Overall customers have
become extremely important to a business, and if you failed to put customers first the business will not be

Shareholder Theory Or Stakeholder Theory
#1 Shareholder theory or stakeholder theory "There is one and only one social responsibility of business – to use its resources and engage in activities
designed to increase its profits so long as it stays within the rules of the game, which is to say, engages in open and free competition without
deception or fraud." (Friedman) Friedman's word perfectly defines the shareholder theory. However, stakeholder theorists, like John Mackey or
Edward Freeman, argue that business has an ethical obligation to all stakeholders, including employees, suppliers, costumers, society and any other
groups of people that the business has a relationship with. Personally, I am more inclined to Milton Friedman's sentiment for various reasons
demonstrated as below. First of all, when business becomes more profitable, the whole society may indirectly benefit from it. As the companies
grow larger, they spontaneously need to hire more people and thus create more job opportunities. Moreover, they will also pay more tax as they
earn more money, which is beneficial for reallocation of wealth and social equity. Most of all, businesses themselves are sometimes the best gifts to
the society. For example, I don't really care about how much money Microsoft donates to charity, but I do appreciate that it makes personal computers
accessible for every individual in a reasonable price. If it hadn't "focused so relentlessly on increasing its profits, cutting his costs in the process", I
would not be able even to

Essay on Friedman vs Freeman
What is ethically responsible management? How can a corporation, given its economic mission, be managed with appropriate attention to ethical
concerns? These are central questions in the field of business ethics. There are two approaches to answering such questions. The first one is Milton
Friedman's shareholder theory of management and the second one is Edwards Freeman's "Stakeholder" theory of management, two different views
about the purpose and aims of a business. Milton Friedman's shareholder theory of management says that the purpose of a business is to make money
for the owner or the stockholders of the business. Friedman says that there is only one social responsibility for the business: to use its resources in order
to increase ... Show more content on Helpwriting.net ...
It says that you cannot look at any one of those stakes / stakeholders in isolation. Their interest has to go together, and a job of a manager or an
entrepreneur is to figure out how the interest of customers, suppliers, communities, employees and financiers go in the same direction. Each of these
groups is important for the business to be successful and if one of the groups is having problems to associate with the rest then it has a negative impact
to all the rest.
In my opinion I believe that both theories have their own advantages and disadvantages and every business has to follow a theory that complies with
its goal, when in my case I would rather follow the theory of Freeman in one extend. Friedman's position we can see it as a theory for short term
investment and businesses, while Freeman's theory targets businesses that are planning to stay for a longer term. Also I believe that Friedman's theory
affects society in an inefficient way when costs are not really paid, as for example pollution, traffic congestion, no taxes, and poorly educated
workforce. Another problem with Friedman's position is that it assumes that forces of competition are sufficiently vigorous, but they are not. In
addition the distribution of income that results from profit maximization is very

What Is The Stakeholder Theory Of Nike
Introduction
A stakeholder is an individual or association who can affect or be affected by the business's activities. They might have neither direct nor indirect
interest in the firms. Form a decent connection between stakeholders and firms is vital because stakeholders can contact with the firm very often or
just in emergency situation to get up to date with the activities of the business. In one way or another, the reputation of stakeholders are influenced by
every activities of the business, therefore, businesses ought to settle ethical decisions for a good image in the society.
There are many stories about how stakeholder theory has been approached lately from 1990s till now and there is a featured story about Nike contract
companies in Vietnam. In Nike's case, the affected group of stakeholder is employees of the company. This essay will illustrate the concept of
stakeholder theory, analyse the case of Nike's contract company and how the ... Show more content on Helpwriting.net ...
A corporate stakeholder is a person or group that can affect or affected by the actions of business (Boundless, n.d.). There are two broad groups of
stakeholder, internal stakeholders and external stakeholders. Internal stakeholders are parties who directly involved in the activities of the firm such as
owners, managers and workers. External stakeholders are people outside of the business for example are customers, suppliers, creditors, government
and the society. (BBC, n.d.) (Boundless, n.d.). Further more, different stakeholder has its own interest in the business, employees want their wage to
increase, manager or owners want to maximize the business's profit, the society wants products that help to develop the community and consumers
want products that meet their demand. Through an overview, all the stakeholders have diverse impacts on the company and it depends on the approach
of the

Corporate Governance : Good Business Management
The general idea we have in mind when we hear the term "Corporate Governance", is that it is an almost unattainable goal. The reason is the only
companies that have "corporate governance" are big businesses with exorbitant capital, or, at least have shares on the stock–market. It is based on the
idea that applying good organizational governance practices, is exclusive and expensive. But those who argue this idea are very far from reality. I
must confess that I was one of these people. Currently all companies regardless of their capital or size, implement some system of administration
(Knell 2008, p. 5), i.e. they have a "Corporate Governance".
Why is it important to discuss Corporate Governance?
Good "Corporate Governance" is ... Show more content on Helpwriting.net ...
Furthermore, each company has different objectives and seeks their own benefit. When they have corporate governance practices in common it
influences the economy of a country, and therefore growth in their development. This is because the investors or "financial institutions abroad, will be
more attracted to inject resources". Consequently, the companies will access to better conditions in international capital markets, being, ultimately, less
exposed to the economic crisis.
Who is in charge?
Currently, the "underlying theoretical concepts" are applied in order to understand or explain, the roles and behaviours of members of corporate
governance.
Firstly we find the "agency theory", refers to the owners and managers of the companies that have different interests. That is, the shareholders or owners
should confront the problems related with managers, who may be acting based on their own interest.
In "management theory", the organization seeks a structure with contents. The management is control, and direction is "spans the action program of
the economic unit"; shareholders and executives create partnerships. Moreover, in "stakeholder theory" the function of the "board directors" is to
represent the interests of the members in the organization. Finally, the "dependency theory" refers to organizations which are dependent substantially
from other organizations and external resources (2012, p.

The Stakeholder Theory
The Stakeholder Theory of the Corporation: Concepts, Evidence, and Implications Author(s): Thomas Donaldson and Lee E. Preston Source: The
Academy of Management Review, Vol. 20, No. 1 (Jan., 1995), pp. 65–91 Published by: Academy of Management Stable URL: http://www.jstor.org
/stable/258887 Accessed: 20/04/2010 23:08
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an entire issue of a journal or multiple copies of articles, and you may use content in the JSTOR archive only for your personal, ... Show more content
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Unfortunately, anyone looking into this large and evolving literature with a critical eye will observe that the concepts stakeholder, stakeholder model,
stakeholder management, and stakeholder theory are explained and used by various authors in very different ways and supported (or critiqued) with
diverse and often contradictory evidence and arguments. Moreover, this diversity and its implications are rarely discussed–and possibly not even
recognized. (The blurred character of the stakeholder concept is also emphasized by Brummer, 1991.) The purpose of this article is to point out some
of the more important distinctions, problems, and implications associated with the stakeholder concept, as well as to clarify and justify its essential
content and significance. In the following section we contrast the stakeholder model of the corporation with the conventional input–output model of the
firm and summarize our central thesis. We next present the three aspects of stakeholder theory–descriptive/empirical, instrumental, and normative
found in the literature and clarify the critical differences among them. We then raise the issue of justification: Why would anyone accept the
stakeholder theory over alternative conceptions of the corporation? In subsequent sections, we present and evaluate the underlying evidence and
arguments justifying the theory from the perspective of descriptive, instrumental, and normative justifications. We conclude that the three approaches

Maximizing the Corporate Objective with the Stakeholder...
Introduction The main contender to value maximization as the corporate objective is stakeholder theory, which argues that managers should make
decisions so as to take account of the interests of all stakeholders in a firm, including not only financial claimants, but also employees, customers,
communities, and governmental officials. Because the advocates of stakeholder theory refuse to specify how to make the necessary tradeoffs among
these competing interests, they leave managers with a theory that makes it impossible for them to make purposeful decisions. With no clear way to
keep score, stakeholder theory effectively makes managers unaccountable for their actions (which helps explain the theory's popularity among many
managers).
But if value creation is the overarching corporate goal, the process of creating value involves much more than simply holding up value maximization as
the organizational objective. As a statement of corporate purpose or vision, value maximization is not likely to tap into the energy and enthusiasm of
employees and managers. Thus, in addition to setting up value maximization as the corporate scorecard, top management must provide a corporate
vision, strategy, and tactics that will unite all the firm's constituencies in its efforts to compete and add value for investors.
In clarifying the proper relation between value maximization and stakeholder theory, the author introduces a somewhat new corporate objective called
"enlightened value

Seminar 2 Essay example
Stockholm University
Stockholm Business School
Business Ethics
Seminar 2
Contextualisation Case 6
Corporate governance of professional football clubs: for profit or for glory?
Shadan Abdullah(930514–6541)
Per Jonsson (780827–0479)
Victor Savigny (902710–P154)
Pui Shan Szeto (921026–P500)
Omkar Vedpathak (940126–P152)
The main stakeholders of football clubs, their 'stake' in the organization and legitimacy of their interests.
Some European football clubs have in, approximately in the last three decades, developed from being relatively small local organizations, into global
giants in terms of multi–million businesses supported and followed by millions of stakeholders from all over the world. How does one relate ... Show
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With normative stakeholder theory one tries to explain (in these settings) why football clubs should take into account the interests of the stakeholders. It
is easy to sympathize with the customer group in this matter. They are the foundation stone that has built the club through the years and they have
invested money, emotions and their private time. But they are not as important as they once was for the club. This given that another stakeholder group
(Suppliers e.g. broadcasting companies, sponsors etc.) now serves the business with monetary funding's, hence the times have changed. Ultimately
though, the suppliers will almost certainly vanish if the customers stop buying the product. Shareholders and employees can easier than the customers
in this case find another business to join, they are not exclusive in the same way as the customers.
The descriptive stakeholder theory can also be useful to the settings in trying to state whether and how the football clubs do listen to the stakeholder's
interests. Also in this context the clubs can rely on their loyal customer base. Even though if you treat them bad (expensive tickets, changing the club

badge and colors etc.) they will not ultimately stop buying the product. You might however as a owner/ shareholder have a customer rebellion on your
hands. Shareholders can more easily sell their stocks if they feel neglected by the club, suppliers will search for other

Stakeholders Theory
The stakeholder theory is a theory of organizational management and business ethics that addresses morals and values in managing an organization.[1]
It was originally detailed by R. Edward Freeman in the book Strategic Management: A Stakeholder Approach, and identifies and models the groups
which are stakeholders of a corporation, and both describes and recommends methods by which management can give due regard to the interests of
those groups. In short, it attempts to address the "Principle of Who or What Really Counts."[2]
In the traditional view of the firm, the shareholder view (the only one recognized in business law in most countries), the shareholders or stockholders
are the owners of the company, and the firm has a binding ... Show more content on Helpwriting.net ...
In contrast, Stakeholder theory argues that every legimate person or group participating in the activities of a firm do so to obtain benefits and that the
priority of the interests of all legitimate stakeholders is not self–evident.
Donaldson and Preston offer four central theses related to stakeholder theory.
1) Stakeholder Theory is descriptive in that it offers a model of the corporation.
2) Stakeholder Theory is instrumental in offering a framework for investigating the links between conventional firm performance and the practice of
stakeholder management.
3) Although Stakeholder Theory is descriptive and instrumental, it is more fundamentally normative. Stakeholders are identified by their interests and
all stakeholder interests are considered to be intrinsically valuable.
4) Stakeholder Theory is managerial in that it recommends attitudes, structures, and practices and requires that simultaneous attention be given to the
interests of all legitimate stakeholders.| Diagram/schematic of theory| | Diagram/schematic of theory| | | | | |
At a minimum, stakeholders are those groups from whom the organization has voluntarily accepted benefits, and to whom the organization has
therefore incurred obligations

Essay on Tesco Csr Responsibilities
Part One: Identify the three most important CSR issues that the company faces and explain why each is relevant for the firm. In order to identify these
issues, you should read not only corporate reports and the company's website, but also media reports and any research papers that offer commentary on
both the company's activities and its significant social and environmental impacts. Part Two: Critically evaluate the nature and degree of the company's
responsibilities in relation to each issue. To do so, arguments should explicitly draw upon the theories outlined in class– e.g. the various ethical
theories, institutional and stakeholder theories. For each issue, you may draw upon a variety of theories – i.e. present a... Show more content on
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This accumulation of undeveloped sites if developed, "could raise Tesco's market share from around 30% at the moment to a competition–stifling
45%." (Anon 2007) The 1000+ Tesco Expresses and numerous suburban Superstores popping up throughout the nation not only drive up land prices
for local retailers and create ghost towns but also give a degree of monopolistic power. An economic NEF report reveals that over the past twenty
years local shops including butchers and greengrocers "have been going out of business in the UK at the rate of 50 a week" suggesting that Tesco
Express stores have help to cause a drop in business of 30–40% from independent retailers (Oram et al 2003). This has resulted in many planning
objections from local residents forcing Tesco to become involved in costly public enquiries and planning appeals. With many taking a sinister view
of these land banks, future growth in the UK may well be stifled highlighting the relevance for Tesco in appeasing locals and governments especially
in light of past Competition Commission investigations. 2._________________________________ i) Honest disclosure of source and quality of
food Tesco accepts fault for this issue in that they were negligent in choosing suppliers (Tesco 2013) and by offering public apologies online and in
the media, suggests recognition of their responsibility to society. Tesco have an enormous level of selling power with consumers having little or no say
in food

Stakeholder Theory Vs. Stakeholder Thinking
Stakeholder theory and definition
Stakeholder is defined as "any group or individual who can affect or is affected by the achievement of the organization's objectives" (Freeman 1984).
Stakeholder theory, when introduced in the 1980s, signify a major change in how relationships within a business might coexist and benefit one another.
The concept of "Stakeholder theory" or "stakeholder thinking" is about identifying groups who are stakeholder in a corporation and manage them. It
states that organizations are collections of several different parties, each with its own goals and objectives. Stakeholder concept has been used, either
explicitly or implicitly, for descriptive purposes, and also as a framework from which different theories and ideas can be derived. It offers an proper
lens for consideration of more composite perspective of the value that stakeholders seek as well as new ways to measure it. Stakeholder thinking has
emerged to understand the three interrelated business problems indicating the problem of how value is created and traded, problem of connecting
ethics and capitalism, and the problem of helping managers think about management. Stakeholder theory can be upstretched with a full different
collection of ethical questions without any context to other theories.
Concept of stakeholder theory
Stakeholder theory was introduced by "R. Edward Freeman" (1984), also known as the "father of stakeholder theory". His theory states that "the
individuals or groups that may

The Managerial Shift Toward Stakeholder Relationship...
There has been a shift in managerial attitudes toward, and consideration for, social and environmental issues in recent decades (Parnell, Scott, &
Angelopoulos, 2013). While mangers have traditionally been obligated to work for the good of the shareholder, widespread adoption of the
stakeholder theory demands that managers seriously consider the impacts of the firm's decisions on all affected outside parties, or stakeholders
(Boatright, 1994; Parnell et al., 2013). However, purchasing and supply chain management (PSCM) in practice seems to remain oriented toward profit
maximization, though interest in social responsibility is growing (Ferrell, Rogers, Ferrell, & Sawayda, 2013). The managerial shift toward stakeholder
relationship management has been evident, yet the extent to which PSCM departments have embraced stakeholder theory is less obvious.
This is problematic because PSCM is a developing discipline (Spina, Caniato, Luzzini, & Ronchi, 2013). Knowledge of actual policies and practices
is important, as future research cannot address real world problems based on assumptions. The purpose of this study is to determine the degree to
which stakeholder theory has been incorporated into companies' PSCM policies. This exploratory research will fill a gap in the PSCM literature,
informing future research by providing scholars with a clearer understanding of the degree to which stakeholder theory has been adopted in PSCM.
Literature Review
Traditional and Stakeholder

Milton Friedman Analysis
Who should benefit, and at whose expense when running a business? Milton Friedman maintains that profit is the only true goal, benefitting the
stockholders. However, R. Edward Freeman proposes that the needs of all a business's stakeholders must be balanced when acting. I support Freeman's
view because the environment has changed since the time of Friedman.
Milton Friedman believes the idea of businesses having some sort of responsibility to society is a baseless notion, and describes discussions
encouraging it as lacking meaningful analysis or precision. "What does it mean to say that 'business' has responsibilities? Only people can have
responsibilities" (Friedman, p.218)1. Corporations are led by executives which are chosen by the owners ... Show more content on Helpwriting.net ...
Maintaining an archaic business model would be foolish. Friedman argues that an executive should not take profits away from the company to donate
to the poor due to his own responsibilities. He then uses this to state that business should never perform any sort of act benevolent to society if it
would not further the pursuit of profits. Unfortunately for Freidman's point of view, the blind pursuit of profits is more often viewed as wicked and
immoral (Friedman, p.222). Government regulation is much more prevalent. Focusing on profits in today's market would soon lead your business on a
sharp decline. Moving from solely focusing on the duty to stockholders, Freeman suggests treating all stakeholders of a business as more than a means
to an end (Freeman, p.233). This can also benefit the stockholders, as by focusing solely on increasing profits, firms can often incur the wrath of
government, forcing their hand, much like with the separation of AT&T into eight separate companies (Freeman, p.234). Stockholders are the primary
beneficiary of corporation, and their money should not be spent frivolously, but it would be difficult to turn a profit if your suppliers, employees and
customers all desert you. Each group of stakeholders has their own desires, which must be weighed and considered, for should one leg of business fall,
the entire firm will come tumbling to the ground.
The view that profit is the only responsibility for corporations is outdated. Friedman's argument may have been valid in the past, but no longer applies.
Regulation and law have increased the influence of other stakeholders. To ignore that fact would be corporate

The Disaster Damaged Bhp 's Reputation And Benefits
As the shareholder of Samarco, the disaster damaged BHP 's reputation and benefits. BHP needs to prepare huge funds for the clean–up bill, potential
fines and compensation for those injured or killed people. In stock market, BHP took a beating in trade after the disaster. BHP fell 5.7 per cent in
London and grappled with the lowest iron prices in a decade. The exact cause of the burst dam is unclear because the investigation is still
continuing. However, a 2013 assessment by the independent Brazilian organisation highlighted concerns about the integrity of the tailings dam and
recommended against renewing the licence which was ignored by Samarco (Ricardo, 2016). people have doubted that whether other tailings dams
of BHP around the world is structurally sound and raised eyebrows about how they manage the risks at other operations. The disaster raised the
suspicion of dependability of tailings dams at other mines owned by BHP. Besides, this disaster reminded people of past failures including the
collapse of the BHP Ok Tedi tailings dam in the late of 20st century which is also considered as one of the worst environmental disaster (3). More
and more people begin to criticize the operation way of BHP and lose the confidence for BHP due to their failure of diligence responsibilities. The
following paragraph on this essay will discuss and analyze whether BHP's behaviour is ethical or unethical through shareholder and stakeholder
theories. The shareholder theory was

The Triple Bottom Line: Social And Economic Model
Triple Bottom Line Theory
Also opposing the economic model, Elkington (1998) opposed the economic model and coined the term "Triple Bottom Line" (TBL). The term
represents the idea that,addition of economic value is not the sole aim of businesses but also addition of social and environmental value to achieve
sustainability. Such triple bottom line is formed by the following concepts (Crane and Matten, 2004). The Triple Bottom Line (Triple p) theory has
rapidly gained recognition as a framework for measuring theperformance of the business. The actions of the firm refer directlyto anyone who is
influenced, either indirectly or directly. The primary bottom line is all about profit, for example, the bottom line is improved by increasing revenues...
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Given their influential position and the enormous impact of business organizations in modern society, the purpose they should serve is discussed by
theorists in various fields. The stakeholder theory of the firm is probably the most popular and influential theory to emerging the CSR area (Stark,
1994). The stakeholder perspective argues that the interests and values of all parties that hold a stake in the organization should be taken into
consideration (De Wit &Meyer, 2002), Carroll (1989) the word `stakeВґ refers to having "an interest or a share in an undertaking". While the term
stakeholder was first recorded in the 1960s, the theoretical approach was in the main developed and presented by Freeman (1984) in the 1980s.
Several authors (Carroll, 1989; Harrison & St John, 1994; Rhenman, 1967) define stakeholders as individuals or groups who in some way affect or are
affected by the organization. Lee (2006) and Smith (2003) say that most firms understand the importance of managing relations with key stakeholders.
Firms that have been successful in this area have done more than simply issuing press releases and responding to

Accounting Theory- Stakeholders
Question: Taking into account Figure 3.4 on page 45 of your textbook (Stakeholder Typology: One, Two, or Three Attributes Present) discuss the
'Ethics in Practice case' on page 46 (Are Plants and Flowers Stakeholders? Do they have rights?)
Freeman (1984, P. 46) popularized the definition of a stakeholder as '. . . ANY group or individual who can affect or is affected by the achievement of
the organization's objectives'. This is a very broad definition meaning that in today's global business environment any individuals and groups may be
business's stakeholders (Davey, 2015). This sparks the debate about whether or not the natural environment can be identifiable as a stakeholder. In the
ethics in practice case 'Are Plants and Flowers ... Show more content on Helpwriting.net ...
Legitimacy–
This perceives appropriateness or a shareholder's claim to a stake. Stakeholder legitimacy is defined as a 'desirable social good', and legitimate
stakeholders are those that 'really count' (Mitchell et al., 1997). Stakeholders with an obvious, formal and direct relationship to the company such as
owners, customers, and employees have a high degree of legitimacy. Authors excluding the natural environment from being a stakeholder say the
natural environment does not have a degree of legitimacy because of it lack of human characteristics and a lack of perceived obligation between it and
organizations (Phillips and Reichart, 2000). However Haigh and Griffiths (2009) argue that the natural environment is a legitimate stakeholder because
managers address environmental issues to maintain their 'right to operate'.
Urgency–
Urgency is the degree to which an issue requires immediate action (Mitchell et al., 1997). Extreme weather, as a result of climate change fits this
description because it can have devastating impacts. For example, major environmental disasters (e.g. storms and tsunamis) demand urgency and power
as they often result in life threatening situations. This results in legitimacy as they require immediate reaction due to the nature of destruction and the
effects on the economic, physical and social environment (Davey, 2015).
Power–
Power is the ability to influence others to

Stakeholder Theory : Managing A Firm Essay
During the late twentieth century, different ideas became popular about how best to manage a firm. The first theory which emerged was Stockholder
theory, which encouraged managers to act as agents for the company's legal owners: it's stockholders. This theory held that it was the function of a firm
to act in the best interests of its owners by focusing on maximizing profits. Ensuring that the stockholders' investments paid off was the fiduciary duty
of the managers of this firm. However, some managers did not feel this style of management was best for their firms. There were other kinds of value
that a firm could want to maximize, not just profits. A new theory emerged, called Stakeholder Theory, which completely altered how managers did
business. Stakeholders were those who affect or are affected by a firm, and they fall into two categories: market stakeholders, who exchange money
like employees or customers and nonmarket, like the environment. It can be challenging for managers to decide which stakeholders to prioritize, but a
firm which uses Stakeholder Theory can effectively earn profits as well as generate a positive value to the community and environment in which it
resides.
One firm which has made stakeholders a focus is Salesforce. The chief executive officer of Salesforce is Marc Benioff, who has been outspoken about
how important managing with the best interest of stakeholders in mind. First, when he launched his firm, he also created the Salesforce Foundation,

The Social Capital Theory ( Sct ) And Stakeholder Theory
Despite the conflicting nature between the social–capital theory (SCT) and stakeholder theory (ST), the role of 'Corporate social responsibility' (CSR)
is a factor for a majority of organisations to gain an economic advantage amongst its competitors. Through globalisation, aspects involving profit
maximisation and business reputation have become the primary influences of the ST. Alternatively, the minority of organisations engaging in CSR
with the altruistic concern for the stability of the wider community and society, reflects the moral influences of values and stakeholder obligations. In
summation, the internal objective of financial performance is dependent on the process that arises from CSR application to the inevitable outcome of
profit maximisation within an organisation, thus re–enforcing the debate that is against altruistic form. The application of CSR is a multi–faceted
concept that may be perceived in an altruistic matter, hence emphasized through the minor perspective of the 'social–capital theory'. This social–capital
theory (SCT) extends upon one's own personal values and beliefs, which are determined throughout each managerial life. In relation to the supports by
J. Cowley (2012), the assumption of CSR participation is considered an obligation towards those in the wider community, whilst claiming to be an
opportunity for consumers to understand the business' social values (p. 422). In response to the increasing demand from societal

Aramex Case Study
Question1:
In this part, I will discuss the importance of the management at Aramex and its acts on their conviction regarding the impacts of the company on
outside interests. Then, I will reflect on the theoretical conceptualization of strategic CSR that can be applied to Aramex taking into consideration the
current positioning.
Aramex, a leading provider in the logistics and transportation solutions sector, is a leader in the region in terms of internalizing and institutionalizing
strategic CSR and sustainability. Aramex seeks to enable and facilitate regional and global trade and commerce and helps local and global companies
connect with one another. It builds on a flexible business model and high investment in people and technology. It is... Show more content on
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Ghandour believed that corporate culture was particularly important in attracting, managing, motivating and retaining talent. Aramex's corporate
culture reflected the values of its leaders, who consistently attempted to nurture and demonstrate empowerment, respect, and innovation. Instilling and
internalizing these values was an arduous process of continuous education, training and reinforcement. The importance of organization corporate
culture appear in the improving the performance and the workflow in different areas such as identity, competition, reputation, quality, productivity,
loyalty, unity and employee retention. Sustainability and social engagement are an integral part of Aramex' corporate culture and day to day business.
Management at Aramex is driven by the conviction that social and business benefits are not mutually exclusive, but rather reinforce each other. The
company's health and growth is seen as dependent on the well–being of society at large and on the communities in which it operates. CSR and
sustainability are viewed as necessary to the company's success. A shift of focus from share value to shared values is central to Aramex's position on
CSR and

Stakeholder Theory and Competing Concept
Introduction
Stakeholder theory was given by R. Edward Freeman, which was expressed many ways to represent the stakeholder as an important part of the
corporate responsibility. According to Stenberg (1996), this stakeholder theory, is basically not capable to provide better corporate governance. He
also stated that, this theory is unable to provide a better view of business performance (Edward & Reed, 1983).
Currently, the stakeholder theory has been grown up from its origin and seen as the concept of Value Maximization in the business firm. It is one of the
important goals of the business organization (Werther & Chandler, 2005). In the present time, stakeholder theory allows the business firms to define the
role and responsibility of ... Show more content on Helpwriting.net ...
This group is also known as the workforce of the company. The employees follow the duty, which are mention in their job description.
The role of external stakeholders is also plays an important role in the growth of the business firm. The biggest group of external stakeholders in a
firm is the group of customers. This group is also known as the primary stakeholders of the firm (FrГ©mond, 2005). Customers mean, the consumers,
who use the services and products of the firm and invest their money in the development of the organization (Werther & Chandler, 2005). It is the
primary responsibility of the firm to satisfy the customers, because high customer satisfaction allows the firm to enjoy good profits.
Another group of external stakeholders are suppliers, who provide raw material and other important components and part to the firm to produce final
products and services. Suppliers affect the efficiency and ability of the firm to attract the customers (Brooks, Mllne & Johansson, 2002).
Government is the stakeholders that increase the ability of the firm to compete in the fair and free trade environment. These stakeholders also allow the
firm to concentrates on the ethical and integral business practices and welfare of the employees as well as the customers (Jones, 2004). The
government defines regulations and work practices for the business firm and also give punishments to those business organization, which breaks

Stakeholder
Stakeholders, Shareholders and Wealth Maximization
V. Sivarama Krishnan, University of Central Oklahoma
ABSTRACT
This paper attempts reconciliation between the two somewhat extreme views espoused by the shareholder wealth maximization paradigm and the
stakeholder theory. The stakeholder theory challenges the basic premise built intocorporate finance theory, teaching and practice. Corporate finance
theory, teaching and the typically recommended practice are all built on the premise that the primary goal of a corporation should be shareholder
wealth value maximization. Extant theoretical and empirical research in financial economics also generally accept shareholder wealth maximization as
the normative and ideal goal on which all ... Show more content on Helpwriting.net ...
This paper is an attempt at reconciling the two somewhat extreme views espoused by the shareholder wealth maximization paradigm and the
stakeholder theory. It aims to provide a fair and balanced review of the two approaches to corporate goal setting and their respective implications to
business decision making. We also attempt to address what is felt as a lack of dialogue between the two camps. The paper is organized as follows.
The first part provides a summary view of the shareholder wealth maximization approach, which we call the traditional finance paradigm. This is
followed by a review of the current research and the salient parts of the stakeholder theory. The following section presents a summary of the critique of
the stakeholder theory by two of the most eminent and perhaps the strongest critics of the theory, Michael Jensen (2001) and Elaine Sternberg
(1999). This is followed by what we consider as our own insight into the stakeholder theory and our attempt at reconciliation between the two
approaches. The last section provides summary and concluding comments.
THE FINANCE PARADIGM
The traditional finance paradigm puts the shareholder wealth maximization as the primary goal of corporate management. This paradigm is built upon
the classic competitive markets assumption. Essentially, it is assumed that all participants who have transactions with a firm employees, suppliers,
customers, lenders, etc. – are

What is the Stakeholder Theory?
Stakeholder can be defined as "any group or individual who can affect or is affected by the achievement of the organization's objectives". This theory
focuses on wider aspect rather than only focusing on just the shareholder. Stakeholder theory is a fundamental theory about how business works at its
best and how it could work. It is concerning on the value creation and trade on how to manage a business effectively.
A consequences of focusing on organization or company's stakeholder is that the shareholder value itself can be enhanced and improved when a wider
stakeholder group–such as employees, provider or credit, customers, suppliers government and the local community is taken into account (Mallin,
2011). This theory also related to ... Show more content on Helpwriting.net ...
Simply moving operations from one part of the globe to another in the interest of shareholder value will not eventually solve the problems of increasing
global–stakeholders problems. A board that pays less attention to the interests of its stakeholders cannot maximize its shareholder value.
However in relation to company performance, this theory has made a number of key contributions. For example, by emphasizing on maintaining
goodwill with stakeholders, the organization will have a much better business ethics. Stakeholder ideas will develop the corporate value statements as
well as the board's role in creating corporate ethics codes, social and environmental reporting which reflect an acknowledgement of a wider set of
corporate obligations beyond only on shareholder value.
Another contribution related to the company performance can be found in Kaplan and Norton's (1992) ideas about the Balanced Scorecard and the
revolution in performance measurement. This Balance Scorecard embodies key stakeholder interests in a firm specific set of measures which link
important operational drivers to financial
performance. It therefore provides managers with a way to explore the organization's inter–dependencies between customers' needs, and what the
company must do in order to meet these needs and sustain competitive success. It has both an immediate performance focus as well as pointing to key
areas for continuous improvement and innovation. From this

The only legitimate objective of any firm is Maximization...
1. Introduction
"Corporate finance theory, teaching and the typically recommended practice at least in the US are all built on the premise that the primary goal of a
corporation should be the maximization of shareholder value."
(Krishnan, 2009)
One often stumbles upon such statements while reading about shareholders value or maximization of shareholders wealth. This is also a typical
answer to questions such as "what is the best and primary objective of a company in a competitive market". But should it be the only and most
important objective in a firm? Must it be fulfilled first and foremost, or is there the possibility of generating more wealth for company, shareholders and
stakeholders with other, different approaches? It has ... Show more content on Helpwriting.net ...
4. Creation of Shareholder Valueand protection against threats
To increase and maximize the wealth/value of shareholders, it is necessary that the company is competitive in their market and can reliably "earn a
considerable return on its investments above their cost of capital" (Doyle, 2000). The increasing rates of return of well performing companies attract
new investors who invest money to become shareholders. These outside funds from investors are essential for growth of businesses and the expansion
into new markets. Measurements of generated shareholder returns over a certain time period deliver the company useful information on whether their
objectives have been achieved or should be new adjusted (Atrill, 2009).
Nevertheless if companies operate in weak markets and fail to create growth and profit the concept of maximization of shareholder wealth is also an
opportunity for self–regulation and security against threats for a company. This approach is in particular useful for safeguarding against difficulties
arising from wrong or misguided leadership within a corporation. Shareholders of a company have the strongest interest in a company's success
because they often invest a lot of capital in the business and require revenues for their deposit (Moore, 2002). As a matter of fact, they become more

What Is The Stakeholder Theory Of Agency Theory
Agency theory
It is an acknowledged fact that the principal–agent theory is generally considered the starting point for any debate on the issue of corporate governance
emanating from the classical thesis on The Modern Corporation and Private Property by Adolf Berle and Gardiner Means. According to this thesis, the
fundamental agency problem in modern firms is primarily due to the separation between finance and management. Modern firms are seen to suffer
from separation of ownership and control and therefore are run by professional managers (agents) who cannot be held accountable by dispersed
shareholders. This separation of ownership from management and the resulting loss of direct owner involvement in the firm forced many people to
rethink the conventional wisdom about the role of markets and the need for private ownership of capital in shaping ... Show more content on
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By expanding the spectrum of interested parties, the stakeholder theory stipulates that, a corporate entity invariably seeks to provide a balance between
the interests of its diverse stakeholders in order to ensure that each interest constituency receives some degree of satisfaction (Abrams, 1951). The
stakeholder theory is therefore appears better in explaining the role of corporate governance than the agency theory by highlighting the various
constituents of a firm. Thus, creditors, customers, employees, banks, governments, and society are regarded as relevant stakeholders. Related to the
above discussion, John and Senbet (1998) provide a comprehensive review of the stakeholders' theory of corporate governance which points out the
presence of many parties with competing interests in the operations of the firm. They also emphasize the role of non–market mechanisms such as the
size of the board, committee structure as important to firm

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