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Stakeholder Theory and “The Corporate Objective Revisited”

Author

Listed:
  • R. Edward Freeman

    (The Darden School, University of Virginia, 100 Darden Boulevard, Charlottesville, Virginia 22906)

  • Andrew C. Wicks

    (The Darden School, University of Virginia, 100 Darden Boulevard, Charlottesville, Virginia 22906)

  • Bidhan Parmar

    (The Darden School, University of Virginia, 100 Darden Boulevard, Charlottesville, Virginia 22906)

Abstract

Stakeholder theory begins with the assumption that values are necessarily and explicitly a part of doing business. It asks managers to articulate the shared sense of the value they create, and what brings its core stakeholders together. It also pushes managers to be clear about how they want to do business, specifically what kinds of relationships they want and need to create with their stakeholders to deliver on their purpose. This paper offers a response to Sundaram and Inkpen's article “The Corporate Objective Revisited” by clarifying misconceptions about stakeholder theory and concluding that truth and freedom are best served by seeing business and ethics as connected.

Suggested Citation

  • R. Edward Freeman & Andrew C. Wicks & Bidhan Parmar, 2004. "Stakeholder Theory and “The Corporate Objective Revisited”," Organization Science, INFORMS, vol. 15(3), pages 364-369, June.
    • Handle: RePEc:inm:ororsc:v:15:y:2004:i:3:p:364-369
    DOI: 10.1287/orsc.1040.0066
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    References listed on IDEAS

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    1. Andrew C. Wicks & R. Edward Freeman, 1998. "Organization Studies and the New Pragmatism: Positivism, Anti-positivism, and the Search for Ethics," Organization Science, INFORMS, vol. 9(2), pages 123-140, April.
    2. Anant K. Sundaram & Andrew C. Inkpen, 2004. "The Corporate Objective Revisited," Organization Science, INFORMS, vol. 15(3), pages 350-363, June.
    3. Edward Freeman, R. & Evan, William M., 1990. "Corporate governance: A stakeholder interpretation," Journal of Behavioral Economics, Elsevier, vol. 19(4), pages 337-359.
    4. Anant K. Sundaram & Andrew C. Inkpen, 2004. "Stakeholder Theory and “The Corporate Objective Revisited”: A Reply," Organization Science, INFORMS, vol. 15(3), pages 370-371, June.
    5. Edward Freeman, R. & Phillips, Robert A., 2002. "Stakeholder Theory: A Libertarian Defense," Business Ethics Quarterly, Cambridge University Press, vol. 12(3), pages 331-349, July.
    6. Phillips, Robert & Freeman, R. Edward & Wicks, Andrew C., 2003. "What Stakeholder Theory is Not," Business Ethics Quarterly, Cambridge University Press, vol. 13(4), pages 479-502, October.
    Full references (including those not matched with items on IDEAS)

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