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Full-Text Articles in Business
Stakeholder Theory, Value, And Firm Performance, Jeffrey S. Harrison, Andrew C. Wicks
Stakeholder Theory, Value, And Firm Performance, Jeffrey S. Harrison, Andrew C. Wicks
Management Faculty Publications
This paper argues that the notion of value has been overly simplified and narrowed to focus on economic returns. Stakeholder theory provides an appropriate lens for considering a more complex perspective of the value that stakeholders seek as well as new ways to measure it. We develop a four-factor perspective for defining value that includes, but extends beyond, the economic value stakeholders seek. To highlight its distinctiveness, we compare this perspective to three other popular performance perspectives. Recommendations are made regarding performance measurement for both academic researchers and practitioners. The stakeholder perspective on value offered in this paper draws attention …
Managing For Stakeholders, Stakeholder Utility Functions, And Competitive Advantage, Jeffrey S. Harrison, Douglas A. Bosse, Robert A. Phillips
Managing For Stakeholders, Stakeholder Utility Functions, And Competitive Advantage, Jeffrey S. Harrison, Douglas A. Bosse, Robert A. Phillips
Management Faculty Publications
A firm that manages for stakeholders allocates more resources to satisfying the needs and demands of its legitimate stakeholders than what is necessary to simply retain their willful participation in the productive activities of the firm. Firms that exhibit this sort of behavior develop trusting relationships with stakeholders based on principles of distributional, procedural and interactional justice. Under these conditions, stakeholders are more likely to share nuanced information regarding their utility functions, which increases the ability of the firm to allocate its resources to areas that will best satisfy them (thus increasing demand for business transactions with the firm). In …
Is Organizational Democracy Worth The Effort?, Jeffrey S. Harrison, R. Edward Freeman
Is Organizational Democracy Worth The Effort?, Jeffrey S. Harrison, R. Edward Freeman
Management Faculty Publications
Organizational democracy is frequently associated with increased employee involvement and satisfaction, higher levels of innovation, increased stakeholder commitment, and, ultimately, enhanced organizational performance. However, democratic processes can also absorb significant time and other organizational resources and bog down decisions, which may lead to reduced efficiency. This article summarizes the pros and cons of organizational democracy. It also introduces and integrates ideas from the three other articles in this special forum. In the end, we conclude that although the economic arguments for organizational democracy may be mixed, increased stakeholder participation in value creation and organizational governance can benefit both society and …