EAD5963
MANAGING FOR STAKEHOLDERS
Session #5
A stakeholder theory of the modern corporation:
Kantian capitalism
Evan, W. M.
Freeman, R. E.
(1993)
A stakeholder theory of the modern corporation: Kantian capitalism
SHAREHOLDERS
COMPETITORS
GOVERNMENT
The stakeholder theory
view of the firm
FIRM
SUPPLIERS
MEDIA
CUSTOMERS
NGOS
EMPLOYEES
Fonte: based on Freeman
(1984)
A stakeholder theory of the modern corporation: Kantian capitalism
The stakeholder theory
view of the firm
A stakeholder theory of the modern corporation: Kantian capitalism
SHAREHOLDERS
COMPETITORS
GOVERNMENT
The stakeholder theory
view of the firm
FIRM
SUPPLIERS
MEDIA
CUSTOMERS
NGOS
EMPLOYEES
Fonte: based on Freeman
(1984)
The purpose of the Firm
A stakeholder theory of the modern corporation: Kantian capitalism
Firm
• Benefits
• Goals
• License to operate
To coordinate
stakeholders
interests
STAKEHOLDER
• Claims
• Needs
• Rights
A stakeholder theory of the modern corporation: Kantian capitalism
Immanuel Kant (1724-1804)
Born in Konigsberg, Prussia (now Kaliningrad, Russia)
Major works: Critique of Pure Reason, Prolegomena to
Any Future Metaphysics, "Answering the Question:
What is Enlightenment?“, Groundwork of the
Metaphysic of Morals, Critique of Practical Reason,
Critique of Judgment, Religion within the Bounds of
Bare Reason, Perpetual Peace: A Philosophical Sketch,
The Metaphysics of Morals
Kantian ethics: Deontological (duty-based) ethics are
concerned with what people do, not with the
consequences of their actions.
A stakeholder theory of the modern corporation: Kantian capitalism
Main theories on moral philosophy for business ethics
Theory
Moto
Concepts
Authors
Criticism
Virtue Ethics
“Be virtous!”
Good life, values in
actions
Aristotle, Saint
Limited applicability to concrete
Thomas of
dilemmas and situational
Aquinas, Confucius ambiguity
Deontology
“To follow higher
principles and
duties!”
Moral principles,
duties, rights, justice
Immanuel Kant,
John Locke, John
Rawls
Conflicting duties and
principles; practicability versus
moral rigorism; neglect of
consequences of actions
Consequentialism
“Judge by the
outcome!”
Greatest happiness
principle, utility,
hedonism
Jeremy Bentham,
John Stuart Mill
Feasibility and complexity of
assessment; inferiority of single
individuals’ and minorities’
Fonte: Laasch and Conaway (2015)
based on Bleisch and Huppenbauer (2011)
A stakeholder theory of the modern corporation: Kantian capitalism
Stakeholder Management Principles
• P1: The principle of Corporate Legitimacy
• Corporations are to be managed for the benefit of its stakeholders
• Corporations must assure stakeholders’ rights
• Stakeholders should participate in corporations’ decisions that affect their
welfare
• P2: The Stakeholder fiduciary principle
• Management bears a fiduciary relationship:
• To assure the stakeholders interests
• To assure the corporation (abstract entity) interests
• To safeguard the long-term stakes of both