Corporation and Its Stakeholders: Classic and Contemporary Readings

The term stakeholders defines a group much broader than a corporation's shareholders. It includes employees, customers, suppliers, and governments, and extends to anyone who benefits from the company. There is considerable debate, given that large multifunctional corporations are now the dominant form of economic organization worldwide, about how responsive and accountable companies should be to their stakeholders. This debate includes fundamental questions such as: Who should be considered stakeholders? Which stakeholder interests should a corporation take into account? How should stakeholder interests be balanced against shareholder objectives (such as profits)? What changes should be made to corporate governance to reflect these new interests? This anthology is designed to sharpen the debate about the role and purpose of the corporation in society through the provision of seminal articles on the concept and recognition of stakeholders, and the integration of stakeholder interests into decision making. It provides a theoretical base for managerial action, and will assist researchers in planning further studies to shed light on the issues involved.