1. EAD5963 MANAGING FOR STAKEHOLDERS
Session #5
A stakeholder theory of the modern corporation:
Kantian capitalism
Evan, W. M.
Freeman, R. E.
(1993)

2. The stakeholder theory view of the firm
A stakeholder theory of the modern corporation: Kantian capitalism
Shareholders
Government
Competitors
The stakeholder theory view of the firm
Suppliers
Customers
Firm
Media
NGOs
Employees
Fonte: based on Freeman (1984)

3. A stakeholder theory of the modern corporation: Kantian capitalism
The stakeholder theory view of the firm

4. The stakeholder theory view of the firm
A stakeholder theory of the modern corporation: Kantian capitalism
Shareholders
Government
Competitors
The stakeholder theory view of the firm
Suppliers
Customers
Firm
Media
NGOs
Employees
Fonte: based on Freeman (1984)

5. To coordinate stakeholders interests
A stakeholder theory of the modern corporation: Kantian capitalism
STAKEHOLDER
Firm
Benefits
Goals
License to operate
Claims
Needs
Rights
The purpose of the Firm
To coordinate stakeholders interests

6. A stakeholder theory of the modern corporation: Kantian capitalism
Immanuel Kant ( )
Born in Konigsberg, Prussia (now Kaliningrad, Russia)
Major works: Critique of Pure Reason, Prolegomena to Any Future Metaphysics, "Answering the Question: What is Enlightenment?“, Groundwork of the Metaphysic of Morals, Critique of Practical Reason, Critique of Judgment, Religion within the Bounds of Bare Reason, Perpetual Peace: A Philosophical Sketch, The Metaphysics of Morals
Kantian ethics: Deontological (duty-based) ethics are concerned with what people do, not with the consequences of their actions.

7. Main theories on moral philosophy for business ethics
A stakeholder theory of the modern corporation: Kantian capitalism
Main theories on moral philosophy for business ethics
Theory
Moto
Concepts
Authors
Criticism
Virtue Ethics
“Be virtous!”
Good life, values in actions
Aristotle, Saint Thomas of Aquinas, Confucius
Limited applicability to concrete dilemmas and situational ambiguity
Deontology
“To follow higher principles and duties!”
Moral principles, duties, rights, justice
Immanuel Kant, John Locke, John Rawls
Conflicting duties and principles; practicability versus moral rigorism; neglect of consequences of actions
Consequentialism
“Judge by the outcome!”
Greatest happiness principle, utility, hedonism
Jeremy Bentham, John Stuart Mill
Feasibility and complexity of assessment; inferiority of single individuals’ and minorities’
Fonte: Laasch and Conaway (2015)
based on Bleisch and Huppenbauer (2011)

8. Stakeholder Management Principles
A stakeholder theory of the modern corporation: Kantian capitalism
Stakeholder Management Principles
P1: The principle of Corporate Legitimacy
Corporations are to be managed for the benefit of its stakeholders
Corporations must assure stakeholders’ rights
Stakeholders should participate in corporations’ decisions that affect their welfare
P2: The Stakeholder fiduciary principle
Management bears a fiduciary relationship:
To assure the stakeholders interests
To assure the corporation (abstract entity) interests
To safeguard the long-term stakes of both