Stakeholder Theory
In business, there is a conflict of ideas between the competing ideas of shareholder theory and stakeholder theory. This paper will outline what each of these theories is, and underscore some of the issues in this debate.

Shareholder Theory

Shareholder theory is the idea that businesses work for the shareholders. The idea was perhaps most famously elaborated by Milton Friedman in 1970. Friedman, arguing at a time when the idea of corporate social responsibility was just becoming popular, made a case that the social responsibility of business is to increase its profits. He offered the constraint that it should do so within the legal and moral context of the land, but the crux of the argument is that businesses do not have other responsibilities beyond the profit motive. At the heart of this theory is the idea that businesses are nothing more than a vessel by which investors earn a return…...

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References

Donaldson, T. & Preston, L. (1985). The stakeholder theory of the corporation: Concepts, evidence and implications. The Academy of Management Review. Vol. 20 (1) 65-91.

Friedman, M. (1970) The social responsibility of business is to increase its profits. New York Times Magazine. Retrieved November 10, 2014 from  http://www.colorado.edu/studentgroups/libertarians/issues/friedman-soc-resp-business.html 

Poteshman, A. & Serbin, V. (2001). Clearly irrational financial market behavior: Evidence from the early exercise of exchange traded stock options. OFOR Paper 01-02. Retrieved November 10, 2014 from  https://www.ideals.illinois.edu/bitstream/handle/2142/3794/ofor01-02.pdf?sequence=2

Stakeholder management is a concept applied to many types of organizations, where strategic decision-making takes into account the interests of multiple different stakeholders (Thompson, 2016). Advocates of the stakeholder perspective have argued that the stakeholder approach is a better way to evaluate a business' success, as opposed to strictly considering financial results (Perrini & Tencati, 2006). The concept of the balanced scorecard hypothesizes that businesses that look after the interests of all stakeholders will perform well on measures affecting all, including the financial measures.
There are differing opinions on this, however. The stakeholder approach advocates for multiple different measures for business, and this is diametrically opposed to the normal means of evaluation, which are strictly financial in nature. It is not actually possible to reconcile these, but both contain financial measures. Many companies seek to portray themselves as giving due attention to non-financial interests, but this is not always the case.…...

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References

Friedman, M. (1970). The social responsibility of business is to increase its profits. New York Times Magazine. Retrieved April 19, 2016 from  http://www.colorado.edu/studentgroups/libertarians/issues/friedman-soc-resp-business.html 

Perrini, F. & Tencati, A. (2006). Sustainability and stakeholder management: The need for new corporate performance evaluation and reporting systems. Business Strategy and the Environment. Vol. 15 (2006) 296-308.

Thompson, R. (2016). Stakeholder management. MIndtool.com. Retrieved April 19,2016 from  https://www.mindtools.com/pages/article/newPPM_08.htm

If the enhanced stakeholder perspective is truly the best for corporate social responsibility, this has significant implications not only for management but also for corporate governance. hile Nohria (no date) argues that corporate governance is a hygiene factor in that its absence is a problem for companies but its presence did not correlate with improved performance, this is only for basic levels of governance. For a board to truly adopt a broad stakeholder perspective, it must be built better. Nadler (2004) argued that a well-constructed board will be one that helps to deliver superior results to the firm. Taking a broad stakeholder perspective, this means that the board should be capable of understanding the perspectives of different stakeholders rather than simply those of the shareholder. Building a board in this way, however, is constrained by the fact that the shareholders vote for the board. At times, other stakeholders may gain…...

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Works Cited:

Branco, M. & Rodrigues, L. (2007). Positioning stakeholder theory within the debate on corporate social responsibility. Electronic Journal of Business Ethics and Organization Studies. Vol. 12 (1) 5-15.

Friedman, M. (1970). The social responsibility of business is to increase its profits. New York Times Magazine. Retrieved March 2, 2011 from  http://www.colorado.edu/studentgroups/libertarians/issues/friedman-soc-resp-business.html 

Nadler, D. (2004). Building better boards. Harvard Business Review. In possession of the author.

Nohria, N. (no date). What really matters? Harvard Business School. Retrieved March 2, 2011 from http://info.umuc.edu/mba/HBS/realmathi/index.html

Intellectual PropertyA for-profit corporation has to protect its intellectual property (IP) needs if it wants to stay competitive. At the same time, it should understand the needs of its customers, who are more likely to be interested in the product itself rather than in who controls the IP. Thus, corporations have a question to ask: how should they guide themselves? Should they use a shareholder theory approach or a stakeholder theory approach? Who should control the IP, and why does it matter? In a world where brand is everything and brand equity is all that matters for controlling a market, companies seek to keep tight control over their IP because it prevents their brand from souring with consumers when they essentially control the flow of innovative goods that come to market. The fact is that there can be no fair balance between customer needs and business needs in a society…...

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References

Gibson, J. W., & Blackwell, C. W. (1999). Flying high with Herb Kelleher: a profile in charismatic leadership. Journal of Leadership Studies, 6(3-4), 120-137.

Givel, M. (2006). Punctuated equilibrium in limbo: The tobacco lobby and US state policymaking from 1990 to 2003. Policy Studies Journal, 34(3), 405-418.

Morrin, D. S. (2000). People Before Profits: Pursuing Corporate Accountability for Labor Rights Violations Abroad Through the Alien Tort Claims Act. Boston College Third World Law Journal, 20(2), 427-446.

Stakeholder Analysis Ford Motor Company
Key Stakeholders Ranked by Level of importance

Internal Stakeholders

External Stakeholders

Corporate officers -- Responsible for establishing the goals and mission of the company and ensuring that managers and employees at all levels are properly carrying out the strategy of the company. (Luca, 2007)

Customers/Car owners -- customers make an investment when purchasing a vehicle and they expect the vehicle to be safe and reliable. Customers depend on their vehicles for work, school and general transportation. As such they have an interest in Ford's ability to develop good dependable vehicles.

Managers -- Managers carry the information received from corporate officers to employees and make certain that the goals established are realized.

The General Public -- Everyday people are killed or injured in car accidents. Because Ford cars are popular and a mainstay on roads throughout the world, the general public is interested in knowing the Ford vehicles are safe.

3. Employees -- Employees…...

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Works Cited

Ford and World Safety Leaders Work to Launch Intelligent Vehicles Quicker, More Affordably. http://corporate.ford.com/news-center/news/press-releases/press-releases-detail/pr-ford-and-world-safety-leaders-work-34762

Luca, Anastasia. 2007. Organizational Stakeholders

MSNBC (2007). "Home Depot CEO Nardelli quits"

McNamara, Carter (2008). Boards of Directors

Theory vs. Creativity in Design
Leaders have a task of moving the organization forward in a fashion that is supported by all stakeholders. After allocating resources to bolster organizational success, leaders must primarily assess and accept the risks related innovation. Innovation includes accepting new management theories to replace the outdated philosophies widely incorporated into an organization's procedures and policies over time (American Evaluation Association, 2004). This study aims to identify, discuss, and recommend strategies to create tension between existing management theories and management's ability to create new business paradigms. The study will also identify and discuss stakeholder attitudes towards innovation, ethics, and inclusion as primary drivers of a successful organization. While focusing on innovation and ethics, the study will suggest ways in which organizational leadership can prepare a company for the future and current environmental changes.

How leaders integrate innovative principles while adhering to industry and market mandates

Integrity and honesty: Organizations must…...

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References

American Evaluation Association. (2004). American evaluators association guiding principles for evaluators. American Evaluation Association. Retrieved from  http://www.eval.org/p/cm/ld/fid=51 

Bogan, C.E., & English, M.J. (2010). Benchmarking for best practices: Winning through innovative adaptation. New York [u.a.: McGraw-Hill.

Burton, R.M. (2008). Designing organizations: 21st century approaches. New York: Springer.

DiMaggio, P. (2011). The twenty-first-century firm: Changing economic organization in international perspective. Princeton, NJ [u.a.: Princeton Univ. Press.

Powerful Stakeholder Policy to Prevent Industrial Environmental Impact
Friedman's stakeholder theory emphasizes the critical function of stakeholders in determining company's goals and responsibilities. Responsibility in a corporation is stated as individual role of each employee and manager to act and report to the upper level and finally to the decision-making boards.

As the top-level management and decision makers, corporate directors address their responsibility to the stakeholders, literally as the "owners" of the company, to whom all the running processes in the company, goal settings, and money spent should be reported. To follow the track, a manager is tied to what his/her employers have defined in the tasks list. Whatever skills and creativity managers possess must be utilized within the range of responsibility they have to the stakeholders, as stakeholders are the top decision-making board.

Company directors act based on the interest of shareholders as stakeholders. Scholl reads them as the "agents of…...

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Bibliography

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Lifetime Achievement:

, Alder, G., & Phelan, S. (2009). ompetitive bluffing: An examination of a common practice and its relationship with performance. Journal of Business Ethics, 87(4), 535-
553. Retrieved October 20, 2009, from ABI/INFORM Global. (Document ID: 1786751071).

This article examines the strategic use of bluffing and concludes that its value is often overrated, given it quickly diminishes in utility. The authors used a simulated competitive market game to prove their thesis, however they also conclude that even in the real world, bluffing is often not conducive to high levels of real performance, and can have undesirable consequences, including a general eradication of trust.

Mathematical Theories 6 & 7: Modern Portfolio Theory (MPT) and fuzzy logic theory

Hui, E., Lau, O., & Lo, K. (2009). A fuzzy decision-making approach for portfolio management with direct real estate investment. International Journal of Strategic Property

Management: Special Issue: apacity Building for Post-Disaster. 13(2), 191-204.

Retrieved October 20, 2009, from ABI/INFORM…...

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Cambridge, 9(2), 68-75. Retrieved October 20, 2009, from ABI/INFORM Global.

(Document ID: 1617904771).

This article uses all three methods -- all of which stress firm market position -- to analyze the strategic position of Blockbuster, a media entertainment company undergoing an identity crisis in the new technological environment: "The Resource-Based View of the firm (RBV) divides internal organizational resources into tangible assets, intangible assets, and organization assets. Tangible assets include production facilities, raw materials, financial resources, and so on. Intangible assets are brand names, organizational moral, technical knowledge, and experience" (Xie & Lin 2008). Porter's model applies similar rigorous scrutiny to the external environment by focusing on "new entrants, bargaining power of buyers, bargaining power of suppliers, threat of substitutes, and rivalry among existing competitors," and SWOT's analysis of strengths, weaknesses, opportunities, and threats gives a future-focused perspective to the firm, enabling it to navigate its way through the current marketing environment (Xie & Lin 2008)..

Managing All Stakeholders in the Context of a Merger Process
Review of the Relevant Literature

Types of Mergers

Identifying All Stakeholders in a Given usiness

Strategic Market Factors Driving Merger Activity

Selection Process for Merger Candidates

Summary, Conclusion, and Recommendations

The Challenge of Managing All Stakeholders in the Context of a Merger Process

Mergers and acquisitions became central features of organizational life in the last part of the 20th century, particularly as organizations seek to establish and maintain competitiveness in an increasingly globalized economy (Nevaer & Deck, 1996). Mergers are generally described as being the formal joining or combining of two corporations or business (Prichett, 1987), although both the framework and the method of merger vary greatly. The reasons for mergers are different based on what a company is trying to accomplish. The acquiring firm may seek to eliminate a competitor; to increase its efficiency; to diversify its products, services, and markets; or to reduce its taxes.…...

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Organizational theory refers to the behavioral and social theories which help in the understanding of both informal and formal organizations. It makes references to a number of fields - anthropology, sociology, psychology, semiotics, economics, communications science, history and cybernetics (Sage Publications, n.d). The field has become popular with sociological researchers. Many of these researchers, drawn from such fields as medical sociology, social movements, political sociology and education, have realized the need to study this concept because of the role in empirical research that big organizations play. Scholars out of this field have always found discussions regarding organizational theory arcane. These scholars also hold the view that all that organizational theory concerns itself with is firms and so it is not applicable in other social situations. The formal or complex organization is the study object in organizational theory. Assumptions are made that there exists goals, rules, hierarchy and definitions of membership…...

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difficult for organization to be effective?
Effectiveness within an organization is a measure of how effective the organization is in achieving the outcomes or goals it has for itself. An organization's effectiveness is also interdependent upon its set of morals, ethics, and ability to community appropriately. Effectiveness is important in different ways for different organizations because of the criteria used to judge (e.g. A non-profit aid group might have a different benchmark than a new accounting firm). It is sometimes difficult for an organization to be effective due to external factors, lack of clear definition and focus, and internal dynamics.

What is the example most outstanding in your mind that accurately illustrates the reality of a learning organization?

A learning organization that almost continually transforms itself and encourages the intellectual growth of its members is probably Apple, Inc. In two eras, 1976-1980 and 2005+. In both of these eras, innovation and out…...

Constraints
What is the Theory of Constraints?

There has been a continuous development of management from the time it was realized that it can be studied carefully to form a branch of knowledge and the individuals who had studied it generally performed better as managers than others who never spent time on the matter. The Theory of Constraints or TOC is basically a philosophy of management and improvement. The first person to draw the attention of the world to this was Eliyahu M. Goldratt and he brought it to the notice of others through his famous book, The Goal. The guiding principle behind this theory is that in any organization there exists a weak link, and this acts somewhat like a chain with a weak link. This tops the organization from performing even better than it is performing at any period of time. In short, it is important to remove the…...

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References

Chaleff, Ira. (October, 1995) "Process Improvement for Knowledge Workers" AFSM International. Vol: 20; No: 3. Retrieved from Accessed on 29 May, 2005http://www.ibt-pep.com/default.asp?ObjectID=257

'Constraint Management & Supplier Relations" Retrieved from   Accessed on 30 May, 2005http://www.focusedperformance.com/supp1.html 

"Constraint Management & the Market" Retrieved from   Accessed on 30 May, 2005http://www.focusedperformance.com/mktg1.html 

'Critical Chain & Project Management the TOC Way" Retrieved from   Accessed on 30 May, 2005http://www.focusedperformance.com/projects.html 

Theory
Compare and contrast at least three views on what constitutes a theory. Distinguish the related concepts of theories, such as hypothesis, paradigm, model and concept.

Differentiating between hypothesis and theory

The word hypothesis is a description of various phenomenon occurring. In most cases, it's not a confirm statement. In other cases, it can be well-developed, designed and explained to follow through the workings and mechanisms of certain phenomenon. According to one definition, it states particularly that it's a precursor to a conditional proposition. A hypothesis is an unconfirmed theory. One can develop a hypothesis while the observation is being tested, that could be unconfirmed too. By an observation, one can simply have a window of opportunity to verify a hypothesis. A hypothesis can be detailed and inclusive of details. This permits lucid testing. Apart from that, it is the distinguishing factor from a theory (Harris, 2001).

The word theory is of scientific nature…...

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References

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Bakacsi, G., Sandor, T., Andra, K., & Viktor, I. (2002). Eastern European cluster: Tradition and transition. Journal of World Business, 37, 69-80.

Bass, B.M. (1990). Bass and Stogdill's Handbook of Leadership. (3rd Edition.). New York: Free Press.

Bioecological Theory and the Family and Community Resource Conceptual Framework)
The Case History

"Kerry" has twin girls who are now 4 years old. he had been living with her defacto "Dean" for the past 6 years. he is a qualified beautician and has previously run a small business from home before the birth of the twins. he undertook schooling until year 12 (equal to UA high school diploma) at a public school, is one of two children herself and has supportive parents in a middle income suburb. he left her defacto 10 months ago after two years of domestic violence brought on by the use intravenous "speed." he has an AVO (Aggravated Violence Order) on "Dean" for 12 months. During the previous two years "Kerry" was subjected to physical and psychological trauma, the twins witnessed this abuse. "Dean" is on a fly in fly out basis working in the mines with…...

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Organizational Stakeholders
Over the last several years, Home Depot has been through a number of different challenges. Part of the reason why this was occurring, is because of shifts in the housing market with consumers dramatically cutting back on their spending. This had a negative impact on the earnings of the company and it has resulted in the former CEO Robert Nardelli being forced to resign. The reason why is because, the needs of various shareholders were not being taken into account. ("Home Depot CEO," 2007) Once this occurred, it meant that there would be new management who were attempting to address all of these different needs. To fully understand how this is taking place requires looking at: the various stakeholders for Home Depot, how the CEO manages the demands of stakeholders and the way they are presently addressing these needs. Once this occurs, it will provide the greatest insights as…...

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Bibliography

Board of Directors. (2011). Home Depot. Retrieved from:  http://ir.homedepot.com/phoenix.zhtml?c=63646&p=irol-govBoard 

Home Depot CEO. (2007). MSNBC. Retrieved from:  http://www.msnbc.msn.com/id/16451112/ns/business-us_business/t/home-depot-ceo-nardelli-quits/ 

Home Depot Raises 2010 Outlook. (2010). CNBC. Retrieved from: http://www.cnbc.com/id/40564833/Home_Depot_Raises_2010_Outlook_on_Stronger_Sales

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Introduction
Corporate Social Responsibility (CSR) has emerged as a critical factor in business strategy, particularly in the banking sector. This research project aims to assess the impact of CSR on financial performance in the South African banking sector. The following literature review provides an overview of existing research on this topic.

Theoretical Approach
The theoretical foundation of this research is grounded in stakeholder theory, which posits that firms have responsibilities not only to shareholders but also to other stakeholders, such as employees, customers, and the community. CSR practices are seen as a means of fulfilling these responsibilities and enhancing....