Stakeholder Theory: Reviewing a Theory That Moves Us

Abstract

This article reviews the academic stakeholder theory literature as it developed between 1984 and 2007. The authors content analyzed 179 articles that directly addressed Freeman's work on stakeholder theory and found five themes: (a) stakeholder definition and salience, (b) stakeholder actions and responses, (c) firm actions and responses, (d) firm performance, and (e) theory debates. Themes were observed in multiple research fields, suggesting broad appeal. The authors noted a substantial rise in stakeholder theory's prominence since 1995 and documented that the theory has detractors insofar as it questions shareholders' wealth maximization as the most fundamental objective of business. The authors' recommendations include urging more empirical research across a broader set of organizations apart from large publicly traded corporations, more qualitative research to document cognitive aspects of how managers respond to stakeholder expectations, and a return to the theory's emphasis on the strategic benefits of stakeholder management, albeit with a broader view of firm performance.

Who is Who? Identifying the Different Sub-groups of Secondary Stakeholders within a Community: A Case Study of the Niger Delta Region of Nigeria Communities

“…Freeman's (1984) seminal work on the stakeholder concept has contributed to the widespread use of the theme in management literature (Reed et al, 2009;Atkin and Skitmore, 2008;Laplume et al, 2008;Welch and Jackson, 2007;Buchholz et al, 2005;Margolis and Walsh 2003;Gibson, 2000;Rowley, 1997;Donaldson and Preston 1995). This reflects the acceptance and acknowledgement among researchers and scholars of the significant position of stakeholders as "any group or individual who can affect or is affected by the achievement of the organisation's objectives" (Freeman 1984, pg.…”

Local Environmental Non-Profit Organizations and the Green Investment Strategies of Family Firms

“…Furthermore, GIS engagement can yield reputational benefits in the local context where the firm is traditionally embedded. These benefits are especially relevant for family than non-family firms because, in virtue of their greater local embeddedness (Graafland, 2002), family businesses are more dependent on the local context for their survival than their nonfamily counterparts (Clarkson, 1995) and, hence, they strive to gain local legitimacy by building trustworthy relationships with stakeholders (Cennamo et al, 2009;Jones and Wicks, 1999;Laplume et al, 2008). They are committed to project and perpetuate a positive family image and reputation (Westhead et al, 2001).…”

Investors’ reactions to companies’ stakeholder management: the crucial role of assumed costs and perceived sustainability

“…It has frequently been acknowledged that organizations need to constantly weigh the needs of different stakeholders (i.e., those groups that are affected by or that can affect their objectives and actions ;Freeman 1984;Laplume et al 2008). In particular, conflicts can arise between shareholding stakeholders and non-shareholding ones, such as customers, suppliers, employees, and the communities in which organizations operate (Donaldson and Preston 1995).…”