Philosophy 2074F/G Study Guide - Open-Question Argument, Pareto Efficiency, Stakeholder Theory
20 Jun 2014
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Edward freeman a stakeholder theory of the modern corporation . To create value for stakeholders, executives must understand that business is fully situated in the realm of humanity. Businesses are human institutions populated by real live complex human beings. They are not mere placeholders for social roles. As such, matters of ethics are routine when one takes a managing for stakeholders approach. (p. 64) Placeholders are people do, if they lose their job they run the risk of not being able to support themselves nor their families. This approach solves some of the problems of the dominant model. The dominant model (stockholder model): managerial capitalism with shareholders at the center, springs from a separation between management and ownership. Executive incentive plans are tied to a company"s stock. In other words, it is a normative model with too many problems and exceptions. This is a mistake, it is a fallacy a mistake in reasoning.
