Shareholder and Stakeholder-Oriented Management - Toward a More Complete Approach

Abstract

A debate between shareholder and stakeholder normative theories for management has been going on for years, but this debate is far from over. This paper tries to contribute to the clarifying of this debate. Both approaches have their own view of the firm, which is closely related to their respective idea on the purpose of the firm in society and with the orientation given to corporate governance. This article suggests that, while both approaches present interesting insights, they are incomplete in their anthropological and ethical grounds. New directions are suggested which would include a more complete model of the human being and a different view of the firm and its purpose. Consequently, new orientations for corporate governance would be needed.

Keywords: Shareholder Theory, Stakeholder Theory, Business as community, Humanism, Philosophical Anthropology, Business Ethics