Stakeholder theory

Introduction Hon Hain Precision Industry Company, better known as Foxconn, was established as a manufacturing company in 1974. This company specializes in its ability to manufacture and assemble mass quantities of consumer electronics. As a result of the product demand, Foxconn hires over a million employees to meet their quota from major corporations, such as Apple, Motorola, Microsoft, and many others. Moreover, the employees face many horrific working conditions. Employees are subjected to long

Moving onto what conditions have lead to this question being posed with insights from various authors such as Nelson Lichtenstein and the ways in which Wal-Mart have retorted. Two main theories of corporate responsibility will be put forth; the stockholder or narrow view presented by Friedman and the stakeholder or wider view

Utility of Stakeholder Theory for Sustainable Business Introduction Strategies employed by international companies to gain competitive advantage over their rivals differ from one company to another. One way of doing this is ensuring that they are environmentally conscious in how they partake their activities. In this modern age, they should not only focus on profit making but also consider how their activities affect the stakeholders of the business; hence the stakeholder model. The Stakeholder Model

Report on Stakeholder Appraisal Contents Report Briefing Stakeholder Preface Substantial Stakeholders within a Business Stakeholders Expectations on Tesco Breaches within Tesco Conclusion Bibliography References Report Briefing Report will set out to identify an organisation (Tesco) major stakeholders, including customer segments, and detail the social responsibilities and

organisations. In traditional view, the shareholders were the main stakeholders in the company. This traditional view has started to be challenged in the late 20th century. Freeman (2010) stated that ‘the business world of 21st century has undergone dramatic change’. In corporate governance theory, there are mainly two kinds of arguments. The first one is that a firm should focus on the shareholder wealth maximisation, which is called theory of shareholder. This one might be considered as the traditional

Stakeholder A corporate stakeholder can affect or be affected by the actions of a business as a whole. The stakeholder concept was first used in a 1963 internal memorandum at the Stanford Research Institute. It defined stakeholders as "those groups without whose support the organization would cease to exist." The theory was later developed and championed by R. Edward Freeman in the 1980s. Since then it has gained wide acceptance in business practice and in theorizing relating to strategic management

to consider the stakeholders theory.  Different stakeholders can hold varying amounts of influence and interest, within the organization. For example, consider a factory worker. An individual worker has large interests in the company, in terms of working conditions, salary, and benefits.

The stockholder and stakeholder theories are two popular frameworks used to examine the purpose of business and its ethical obligations. With reference to the quote above, both theories seem rational and enjoy strong support. However, a common failing of both is typically how humans interpret and implement the theories in contemporary business environments. For instance, Enron was so focused on the raising the price of their stock that they “cooked the books to produce fake profits”1. This paper

duties and responsibilities. The theories of Organizational management have enlightened the world with the views and roles that define the organization system as a whole. It has highlighted the methods and terms of organizing. The business entities and the players are however sufficed with many moral and ethical problems. The companies face serious problems in regard to the relationship between the players namely the shareholders, managers and also the stakeholders of the company. The company facing

FINANCIAL PERFORMANCE CASE STUDY: ROOFINGS GROUP 1.0 INTRODUCTION Corporate governance is concerned with ways in which all parties interested in the well-being of the firm (the stakeholders) attempt to ensure that managers and other insiders take measures or adopt mechanisms that safeguard the interests of the stakeholders. Such measures are necessitated by the separation of ownership from management, an increasingly vital feature of the modern firm. A typical firm is characterized by numerous owners