” It was authored by Daniel S. Loxton and Benjamin H.
To put it simply, a great deal of discussion in the area of organizational strategy revolves around the fact that there are “good and bad” organizations, as defined by each individual. And yet there is also the issue of the perception that there are types of organizations that are more appropriate than others.
That’s the reason why a corporate social responsibility theory that emphasize shareholder interests, versus stakeholder interests, are far more efficient, to coin a phrase. The theory has been crafted and refined over time to better reflect the reality of what’s really going on. There is no need to classify either type of organization under the label of “bad”good.”
A great majority of organizations are good, and it’s in our best interest to promote those that are successful, to further and extend their success. And a great majority of organizations are, on the other hand, staked out as a stakeholder, and that is where the problem lies.
It is the role of an individual, a shareholder, or a stakeholder to help make the world a better place. And a good number of these people are already actively engaged in the task. But that’s not enough to create a whole, meaningful set of policies and procedures, and to “build a culture of responsibility.”
The aim of corporate social responsibility theory is to take a group of people, who have many different backgrounds, many different roles, and many different jobs. As a result, you will find that many of them will hold similar beliefs and ideals, and the desire to be “involved” in building a stronger world. Yet there is much more that can be done.
A substantial group of people can influence, if not change, a lot of things. One does not necessarily have to possess exceptional knowledge about the subject, or to possess any particular knowledge at all, to contribute to making a difference. Those same people can become stakeholders and contribute to creating a much better world.
Stakeholders, and shareholders, are both interested in advancing the mission of a company. The fact that the companies are looking to maximize shareholder value doesn’t imply that the shareholders are doing anything other than what is expected of them. A “stockholder” is not necessarily an employee.
We’ve come a long way from the days when the “shareholder” and the “employee” were always one and the same. What’s more, corporations now have sophisticated methods for maintaining and promoting trust and confidence. The evidence is, in fact, out there that many
business
es are beginning to see shareholder value as just as important as the other two.
Unfortunately, many small business owners don’t feel the same way. Unfortunately, a large percentage of organizations don’t believe in this concept at all.
This is why corporate social responsibility stakeholder theory of corporate governance theory is so important. Those who believe in it are paving the way toward creating a better world.
Please consider all this and think on it. Consider it tomorrow
