Stakeholder theory: issues to resolve
Mario L B Raposo2011, Management Decision
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Abstract
Purpose -The objective of this paper is to collate and debate the main issues driving the stakeholder theory academic debate. Design/methodology/approach -First, a discussion of the stakeholder concept is set out before moving on to the history and nature of stakeholder theory. The work proceeds with an attempt to bring together systematically the points of divergence among researchers interested in stakeholder theory, and, finally, there is a brief discussion of these theoretical loopholes in conjunction with a proposed research agenda for the field. Findings -Based on the unification of the theoretically problematic issues, research agenda are put forward with the objective of clarifying doubts and resolving the controversies ongoing among academics. As regards the formulation of stakeholder theory, one question requiring resolution is that of the stakeholder concept itself. Additionally, further research should focus on the boundaries as to what constitutes a stakeholder group as well as defining the criteria for attributing individual membership of one or another group. In practical theoretical application, it is correspondingly necessary to target research on aspects such as conflicts of interest between stakeholders and management difficulties in coping with multiple objectives. Finally, there is a need for research that systematizes the knowledge produced with the objective of attaining the theoretical convergence necessary for the development of stakeholder theory. Originality/value -The main contribution of this paper derives from the systematization of the various shortcomings that need overcoming within the framework of stakeholder theory and the identification of research agendas.
Key takeaways
- Stakeholder theory arrived in time to explain and predict how organizations should act by taking into consideration the influences of stakeholders hitherto left out of the range of analysis, such as the local community and the media, among others.
- As Donaldson and Preston (1995) affirmed, stakeholder theory cannot be considered a single theory, but rather a set of theories for the management of stakeholders.
- According to this author, of these two modes, neither is preferred and both approaches make significant contributions towards the development of stakeholder theory as both contain factors important for any understanding of organizational relationships with stakeholders.
- In accordance with a unified concept of the stakeholder term, the theoretical approach referred to here would render conceptual clarity and an enhanced definition, generating important academic interpretations (and better focused research) and practices (better management understanding as to who their stakeholders actually are).
- Furthermore, as it is highly difficult to deal with everyone, we clearly need recommendations on how to attribute relevance to stakeholders, as is the case with the stakeholder salience model (Mitchell et al., 1997), thereby contributing to the practical application of this theory despite the long standing lack of thorough empirical testing.
