Stakeholder Theory

“a theory of organizational management and business ethics that addresses morals and values in managing an organization”

Who uses it?

Corporations!

Organizational Communication

1. Define the specific stakeholders

2. Examine how they should be treated as stakeholders

2 Steps of theory:

This theory is crucial for the success of organizations!

Why?

Because the sole responsibility of the organization is to those who own the instruments of production (the stakeholders!)

Stakeholder

5 Categories of Stakeholders

Shareholders

Customers

Employees

Suppliers

Communication

Criticism: Provides an unrealistic view of how corporations really work

Stakeholder Theory is an ethical perspective…

Meaning a business is behaving ethically if profits are generated for the stakeholder

Do not confuse with ethical judgments based on the right/justice-based perspective which is based on dignity. Ethics according to stakeholder theory are about profit.