?The stakeholder theory has been advanced and justified in the management literature on the basis of its descriptive accuracy, instrumental power, and normative validity. These three aspects of the theory, although interrelated, are quite distinct; they involve different types of evidence and argument and have different implications. In this article, we examine these three aspects of the theory and critique and integrate important contributions to the literature related to each. We conclude that the three aspects of stakeholder theory are mutually supportive and that the normative base of the theory-which includes the modern theory of property rights-is fundamental. If the unity of the corporate body is real, then there is reality and not simply legal fiction in the proposition that the managers of the unit are fiduciaries for it and not merely for its individual members, that they are . . . trustees for an institution [with multiple constituents] rather than attorneys for the stockholders.

http://www.faculty.wwu.edu/dunnc3/rprnts.stakeholdertheoryofcorporation.pdf

The Stakeholder Theory of the Corporation: Concepts, Evidence, and Implications

Companies are increasingly asked to provide innovative solutions to deep-seated problems of human misery, even as economic theory instructs managers to focus on maximizing their shareholders' wealt

Misery Loves Companies: Rethinking Social Initiatives by Business:

Trust: The Social Virtues and the Creation of Prosperity

The Corporate Social Responsibility (CSR) field presents not only a landscape of theories but also a proliferation of approaches, which are controversial, complex and unclear. This article tries to clarify the sit- uation, ''mapping the territory'' by classifying the main CSR theories and related approaches in four groups: (1) instrumental theories, in which the corporation is seen as only an instrument for wealth creation, and its social activities are only a means to achieve economic results; (2) political theories, which concern themselves with the power of corporations in society and a responsible use of this power in the political arena; (3) integrative theories, in which the corporation is focused on the satisfaction of social demands; and (4) ethical theories, based on ethical responsibilities of corporations to society. In practice, each CSR theory presents four dimensions related to profits, political performance, social demands and ethical values. The findings suggest the necessity to develop a new theory on the business and society relationship, which should integrate these four dimensions.

Corporate Social Responsibility Theories: Mapping the Territory

This article is intended to enhance the position of stakeholder theory as an integrating theme for the business and society field. It offers an instrumental theory of stakeholder management based on a synthesis of the stakeholder concept, economic theory, behavioral science, and ethics. The core theory—that a subset of ethical principles (trust, trustworthiness, and cooperativeness) can result in significant competitive advantage—is supplemented by nine research propositions along with some research and policy implications.

Instrumental stakeholder theory: a synthesis of ethics and economics

“Would you tell me, please, which way I ought to go from here?” Alice asked the Cheshire Cat. “That depends a good deal on where you want to get to,” said the Cat. “I don't much care where...” said Alice. “Then it doesn't matter which way you go,” said the Cat. (Carroll, 1983: 72)

Toward A Unified Conception Of Business Ethics: Integrative Social Contracts Theory

This text offers a method for untangling the ethical dilemmas that arise through business transactions, regardless of culture or context. It also demonstrates how empirical descriptions and normative evaluations of business policies must cooperate to inform sound business decisions. Examples are used to support the author's points, featuring companies such as AT&T, Levi-Strauss and Royal Dutch/Shell.

Ties That Bind: A Social Contracts Approach to Business Ethics

How Binding the Ties? Business Ethics as Integrative Social ContractsTies That Bind: A Social Contracts Approach to Business Ethics

The practice of corporate philanthropy has evolved significantly over the past several decades and has now become an integral part of corporate strategy. This article identifies an emerging form of corporate community involvement called "Corporate Social Initiatives" (CSI). These programs differ from their predecessors in that they are connected to the firm's core values, responsive to moral pressures, based on the firm's core competencies, and have clear objectives and means of measurement. Firms are adopting these initiatives as a part of a strategy that seeks competitive advantage through reputation assets or as a response to perceived pressures from the moral marketplace. This article explicates the drivers behind the increased interest in CSI, relates CSI to changes in the environment of social expectations for business, reviews potential challenges to CSI programs, and suggests critical factors in the design of successful CSI programs.

/pdf/the-next-wave-of-corporate-community-involvement-corporate-47y6vkxzlp.pdf

The Next Wave of Corporate Community Involvement: Corporate Social Initiatives:

This paper extends the discussion of guanxi beyond instrumental evaluations and advances a normative assessment of guanxi. Our discussion departs from previous analyses by not merely asking, “Does guanxi work?” but rather “Should corporations use guanxi?” The analysis begins with a review of traditional guanxi definitions and the changing economic and legal environment in China, both necessary precursors to understanding the role of guanxi in Chinese business transactions. This review leads us to suggest that there are distinct types of, and uses for guanxi. We identify the potentially problematic aspects of certain forms of guanxi from a normative perspective, noting among other things, the close association of particular types of guanxi with corruption and bribery. We conclude that there are many different forms of guanxi that may have distinct impacts on economic efficiency and the well-being of ordinary Chinese citizens. Consistent with Donaldson and Dunfee (1999), we advocate a particularistic analysis of the different forms of guanxi.

Thomas W. Dunfee

Papers

Toward A Unified Conception Of Business Ethics: Integrative Social Contracts Theory

Ties That Bind: A Social Contracts Approach to Business Ethics

How Binding the Ties? Business Ethics as Integrative Social ContractsTies That Bind: A Social Contracts Approach to Business Ethics

The Next Wave of Corporate Community Involvement: Corporate Social Initiatives:

Is Guanxi Ethical? A Normative Analysis of Doing Business in China