“Stakeholder theory regards the firm as a nexus of stakeholders, commonly defined as groups or individuals who can affect or are affected by the achievement of the firm's goals (Freeman 1984). Depending on the ground for examining a firm's stakeholders, we can differentiate three approaches (Jones 1995):
The descriptive approach proposes an examination of firm-stakeholder relationships to provide an understanding of how the firm deals with different stakeholders.
The normative approach proposes an examination of firm-stakeholder relationships to discem stakeholders' interests and offer guidance on how to account for them using moral or philosophical principles.
The instrumental approach also proposes an examination of firm-stakeholder relationships to discem stakeholders' interests. However, in contrast to the normative approach, the instrumental approach involves the organizational performance consequences that stem from accounting for these interests.
The distinctive aspect of the instrumental approach to stakeholder theory is that it explicitly suggests linking stakeholder-directed activities (means) to corporate performance outcomes (ends) (Donaldson and Preston 1995; Freeman 1999).”

—  Christian Homburg

Source: "Corporate social responsibility in business-to-business markets", 2013, p. 56; On Instrumental stakeholder theory

Adopted from Wikiquote. Last update June 3, 2021. History

Help us to complete the source, original and additional information

Do you have more details about the quote "Stakeholder theory regards the firm as a nexus of stakeholders, commonly defined as groups or individuals who can affec…" by Christian Homburg?
Christian Homburg photo
Christian Homburg 18
German academic 1962

Related quotes

“We define CSR as a firm's voluntary consideration of stakeholder concerns both within and outside its business operations.”

Christian Homburg (1962) German academic

Source: "Corporate social responsibility in business-to-business markets", 2013, p. 54

“A stakeholder in an organization is (by definition) any group or individual who can affect or is affected by the achievement of the organization's objectives.”

R. Edward Freeman (1951) American academic

Source: A stakeholder approach to strategic management, 1984, p. 46

“"Stakeholder Management" as a concept, refers to the necessity for an organization to manage the relationships with its specific stakeholder groups in an action-oriented way.”

R. Edward Freeman (1951) American academic

Source: A stakeholder approach to strategic management, 1984, p. 52

Igor Ansoff photo

“This theory maintains that the objectives of the firm should be derived by balancing the conflicting claims of the various 'stakeholders' in the firm: managers, workers, stockholders, suppliers, vendors. The firm has a responsibility to all of these and must configure its objectives so as to give each a measure of satisfaction. Profit which is a return on investment to the stockholder is one of such satisfactions, but does not receive special predominance in the objective structure”

Igor Ansoff (1918–2001) American mathematician

Source: Corporate Strategy, 1965, p. 34; Cited in: Russell L. Ackoff (1994), The Democratic Corporation. p. 37

“Lack of specificity around stakeholder identity remains a serious obstacle to the further development of stakeholder theory and its adoption in actual practice by business managers. Nowhere is this shortcoming more evident than in stakeholder theory's treatment of the constituency known as 'community.”

R. Edward Freeman (1951) American academic

Freeman (2001) "Enhancing Stakeholder Practice: A Particularized Exploration of Community," 2001, cited in: Enhancing Stakeholder Practice, Ten Years Later: Professor Ed Freeman on Community, Technology and Globalization http://www.justmeans.com/Enhancing-Stakeholder-Practice-Ten-Years-Later-Professor-Ed-Freeman-on-Community-Technology-Globalization/48445.html, in: Corporate social responsibility, April 15, 2011

“The organization as a coalition of diverse stakeholders is a coalition with multiple goals.”

Gareth Morgan book Images of Organization

Source: Images of Organization (1986), p. 154

Igor Ansoff photo

“The stakeholder concept was originally defined as "those groups without whose support the organization would cease to exist." The list of stakeholders originally included shareowners, employees, customers, suppliers, lenders and society. Stemming from the work of Igor Ansoff and Robert Stewart (in the planning department at Lockheed) and, later Marion Doscher and Stewart at SRI, the original approach served an important information function in the SRI corporate planning.”

Igor Ansoff (1918–2001) American mathematician

R. Edward Freeman (2010) Strategic Management: A Stakeholder Approach. p. 32

“The stakeholder concept was originally defined as "those groups without whose support the organization would cease to exist." The list of stakeholders originally included shareowners, employees, customers, suppliers, lenders and society. Stemming from the work of Igor Ansoff and Robert Stewart (in the planning department at Lockheed) and, later Marion Doscher and Stewart at SRI, the original approach served an important information function in the SRI corporate planning.”

R. Edward Freeman (1951) American academic

R. Edward Freeman (2010) Strategic Management: A Stakeholder Approach. p. 32

Ronald H. Coase photo

“In my view, what is wanted in industrial organization is a direct approach to the problem. This would concentrate on what activities firms undertake, and would endeavor to discover the characteristics of the groupings of activities within firms. Which activities tend to be associated and which do not? The answer may well differ for different kinds of firm.”

Ronald H. Coase (1910–2013) British economist and author

1960s-1980s, "Industrial Organization: A Proposal for Research" (1972)

“This paper reports on a comparative case study of 13 industrial firms that implemented an enterprise resource planning (ERP) system. It compares firms based on their dialectic leaming process. All firms had to overcome knowledge barriers of two types: those associated with the configuration of the ERP package, and those associated with the assimilation of new work processes. We found that both strong core teams and carefully managed consulting relationships addressed configuration knowledge barriers. User training that included both technical and business processes, along with a phased implementation approach, helped firms to overcome assimilation knowledge barriers. However, all firms in this study experienced ongoing concerns with assimilation knowledge barriers, and we observed two different approaches to address them. In a piecemeal approach, firms concentrated on the technology first and deferred consideration of process changes. In a concerted approach, both the technology and process changes were undertaken together. Although most respondents clearly stated a preference for either piecemeal or concerted change, all firms engaged in practices that reflected a combination of these approaches.”

Jeanne W. Ross (1958) American computer scientist

Abstract, p. 17-18
Learning to implement enterprise systems (2002)

Related topics