INTL 3400 Lecture Notes - Lecture 5: Natural Capital, Biomimetics, Ostraciidae
1 Aug 2019
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Document Summary
Business models: 3 flaws in the traditional business paradigm, money is the purpose. Purpose of the firm is to maximize its market value = make the most money it can for shareholders: business and ethics contradiction. Business models are based on stakeholders management. Stakeholders" salience: stakeholders stand out (i. e. are salient) to managers when they have power, legitimacy and urgency: people are simple beings of self-interest, new ideas, not about trade-offs. Corporations have multiple obligations and all stakeholders groups must be taken into account manager"s role is to make decisions that creatively maximize valeu for stakeholders simultaneously: stakeholders at the center of the story. Business models are based on stakeholder engagement: values and ethics as guidelines. Stakeholders are different and they have different needs. Shareholder vs. stakeholder capitalism: friedman"s view = manager"s role is to make decisions that creatively maximize shareholder wealth, freeman"s view = manager"s role is to make decisions that vreatively maximize value for stakeholders simultaneously.
