GMS 802 Lecture Notes - Lecture 2: Value Proposition, Stakeholder Theory, Business Ethics
16 Oct 2016
School
Department
Course
Professor
Document Summary
Chapter 3- ethics, stakeholders, corporate strategy and value creation. 5 essential points inherent in the stakeholder model. There is not one size fits all firms must manage across all three levels of framework the dominant mode: managerial capitalism with shareholders at the center. Shareholder capitalism: the stakeholder view or managing for stakeholders. Has put shareholders at the center of the firm as the most important group to which managers should pay attention. Brought more complexity by focusing more intensely on shareholders and creating value of shareholders change and the managerial view of business. The idea of business with shareholders at the centre is inherently resistant to change: puts shareholders interest above customers, suppliers, employees and others, meaning a business will act first and foremost in the shareholders interest. This causes managers to fail to look externally for new sources of growth and innovation and concerns of employees and customers are traded off for the interest of shareholders.
