Key to a Sustainable Enterprise Each relationship is an intangible asset of the business.
A Stakeholder Approach Pitman,defines the term as follows: At its broadest and most ambitious, the stakeholder concept represents a rede? Yamak and Suerp. The shareholder theory and the stakeholder theory are two patterns that stand out as explanation of corporate behaviour.
Stakeholders are entitled to some rights and interests because they are central to the existence of any business. Problems of corporate governance arise when the rights of stakeholders are violated Bhasa,p. Expectations of stakeholders—but also their risk-taking behaviour and interdependencies—will differ according to changing levels of risk.
Managers are assumed to ensure that the ethical rights of all stakeholders are respected and balanced. Although many existing models contain constructs that can explain certain aspects of the stakeholder governance phenomenon, a strategic management model and a communication management model were identi?
The main aim is to develop a new theoretical framework from the stakeholder-oriented integrative strategic management model Katsoulakos and Katsoulacos, and the de?
These models encapsulate in different ways the interrelationships between the relevant concepts of this article, namely corporate governance, sustainability, strategy, communication, stakeholder relationships and corporate reputation.
However, a new theoretical framework that explains the phenomenon of stakeholder relationship governance will have to be developed.
It will contain the relationships and outcomes that will be needed to understand a new paradigm for the academic? Over the course of the past 20 years stakeholder theory has developed significantly: The research perspective on stakeholder theory has broadened from a descriptive and instrumental perspective to a normative viewpoint Donaldson and Preston, The underlying individualistic and masculine assumptions have been unveiled with the consequence that the stakeholder concept has been re-interpreted from a feminist perspective, putting emphasis on the structure of relationships Wicks et al.
Instrumental, theoretical constructs such as agency theory, transaction cost and contract theory have been replaced by ethical ways of explaining stakeholder relations Freeman, According to Freeman et al.
It asks managers to articulate the shared sense of th value they create, and what brings its core stakeholders together.
It also pushes managers to be clear about how they want to do business, specifically what kinds of relationships they want and need to create with their stakeholders to deliver on their purpose. Against this background, we will discuss in the following the meaning of responsible leadership.
First, the concept of responsible leadership suggests not looking at leadership from a descriptive and instrumental perspective as traditional leadership theory does, but from a normative point of view. Instead of understanding leadership as being values free we understand it as a moral, values-based and thus normative phenomenon.
Second, it implies to understand leadership as a social-relational phenomenon Smircich and Morgan, ; Berger and Luckmann, that occurs in interaction with different groups of followers. As a consequence, the focus of the leader—follower relationship is broadened: M, The main objective of this article is the integration and synthesis of two existing models in order to explain the phenomenon of the governing of stakeholder relationships.
The second is a management model developed by Katsoulakos and Katsoulacos in and is called:Although many existing models contain constructs that can explain certain aspects of the stakeholder governance phenomenon, a strategic management model and a communication management model were identiﬁed in this article, to address the phenomenon of stakeholder relationship governance in a holistic manner.
The Stakeholder Approach to Corporate Governance According to stakeholder theory, companies should design their corporate strategies considering theoretical framework for analyzing the relationship between company and society (Clarkson, IESE Business School-University of Navarra - 3.
for stakeholders making decisions about whether to continue a relationship. Trust between the organization and the stakeholder was also deemed important for these types of decisions. Organization for Economic Cooperation and Development has recently proposed a definition of corporate governance as, “a set of relationship between a company’s management, its board, shareholders and other stakeholders.
Stakeholder relationships that are unmanaged or mismanaged have a number of less than favourable consequences for companies. Identification of the stakeholder Prioritization of the stakeholder Understanding the needs of the stake holder Engaging with stakeholder Monitoring the engagement efforts 1.
THE ROLE OF STAKEHOLDERS IN CORPORATE GOVERNANCE Eastern Caribbean Corporate Governance Forum John A.
Zemko stakeholders there is a difference between “taking successor generation and in relationship with banks • Pyramid Structures – firms controlled by families holding.