Stake Holder Corporation

Overview

There is no doubt that stakeholder-inclusive companies will out-perform stakeholder-exclusive companies with increasing ease in the 21st Century.

In the future, development of loyal relationships with customers, employees, shareholders and other stakeholders, will become one of the most important determinants of commercial viability and business success. Increasing shareholder value will be best served if your company cultivates the support of ...

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Overview

There is no doubt that stakeholder-inclusive companies will out-perform stakeholder-exclusive companies with increasing ease in the 21st Century.

In the future, development of loyal relationships with customers, employees, shareholders and other stakeholders, will become one of the most important determinants of commercial viability and business success. Increasing shareholder value will be best served if your company cultivates the support of all those who may influence its performance.

The Stakeholder Corporation examines the business case for good corporate citizenship and gives you a workable management system for auditing and transforming your stakeholder relationship.

At a time when many are talking about the stakeholder economy, The Stakeholder Corporation provides numerous case studies of successful businesses, which demonstrate that stakeholder inclusion is both practical and good for business.

The Stakeholder Corporation is the major vehicle for creating economic value now and into the next century. Finally, we have some management thinkers who understand how business really works."

—Professor R. Edward Freeman
Darden Graduate School of Business Administration
University of Virginia

"Stakeholding is not a new idea—it is one of the oldest strategies for creating value. Many successful businesses have a strong commitment to maximizing stakeholder loyalty."

— Rt Hon Tony Blair, Prime Minister

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Product Details

  • ISBN-13: 9780273626619
  • Publisher: Pearson Education
  • Publication date: 5/1/1997
  • Pages: 320
  • Product dimensions: 6.49 (w) x 9.55 (h) x 1.39 (d)

Table of Contents

Foreword
Introduction
Pt. 1 The Rise of the Stakeholder
1 Does nobody trust us? 3
2 Free enterprise: the rules of the game 8
3 The referees and line judges: who enforces the rules? 17
4 The teams: companies and corporations 28
5 The sponsors: investors and bankers 34
6 The team captains: business leaders and CEOs 50
7 The supporters: employees and customers 59
8 The playing field: protecting the environment 78
Pt. 2 Corporate Strategy - Three Parables of Twentieth Century Management
9 Freemarket Motor Parts Inc 89
10 Responsive Systems and Technology Inc 108
11 The Inclusive Magazine Company 121
Pt. 3 The Guide
12 Governance and stakeholding 141
13 Developing inclusive relationships with stakeholders: a general approach 167
14 Cycle of inclusion: shareholders and investors 182
15 Cycle of inclusion: employees and managers 190
16 Cycle of continuous improvement: occupational safety and health 223
17 Cycle of inclusion: customers 240
18 Cycle of continuous improvement: quality 253
19 Cycle of inclusion: suppliers and business partners 264
20 Cycle of inclusion: the local community 275
21 Cycle of inclusion: government and civil society 284
22 Cycles of continuous improvement: the physical environment and nonhuman species 297
23 Cycle of continuous improvement: transparency and public reporting 340
Epilogue 347
References and further reading 350
Index 364
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Preface

Foreword

After thirty years in business I am still trying to make sense of it all. Some days it seems the most important qualification you need is adegree in semantics or philosophy. Other times it would be useful to have a background is psychology and, on really bad days, in psychotherapy. Standard training in business rarely equips business people with the wisdom and skills to deal with the fundamental challenges let alone the day to day crises which are commonplace in today's ultra-competitive business environment.

As an avid reader and absorber of contemporary business thinking which does try to address some of the deeper questions about the role of enterprise and the responsibilities of leadership, I am regularly refreshed by the sheer good sense of those who argue it is acceptable to be yourself, to debate the issues, to bring your heart to work. Indeed, in the pressure cooker world which business is fast becoming, it is ever more important for individuals to achieve personal balance, to work with colleagues in a noncompetitive and co-creative way and to be able to admit that sometimes we all get things wrong. And if it is important that individuals get the space and spiritual support to reflect on what their work means, it is just as urgent that organizations do the same

I never cease to be amazed at how much of the "business as usual"approach still pervades company behavior today. Very few chief executives publicly challenge the role of business itself to try to connect their activities to wider social objectives except in a strict economic sense. Some of our best companies still retreat into "shareholder value" justificatcommunity outreach programs when they should simply celebrate and say "this is what business should be about". But I detect that things are changing. Large companies around the world are beginning to recognize that legitimacy in society is an active responsibility not a passive one. It takes a little courage to shed the command and control mentality—to see your stakeholders as sources of strength rather than instability. But if fortune favors the brave, then commercial success will incresingly favor the community-based, stakeholder inclusive companies of the twenty-first century.

This book analyzes the history of stakeholding in business and tells a few stories along the way. Some made me laugh, others made me want to weep. Without doubt, business has a lot to answer for and has been responsible for a lot of misery in the world. But business has also contributed hugely to the lives of many people; it has liberated the previously poor and the dispossessed and has generated untold numbers of honorable livelihoods over the generations. The book also contains a few clues along the way as to how the involvement of multitudes of constituencies can be maximized and what benefits it can bring.

I would pretend that my company is the perfect stakeholder inclusive corporation. We do of course try to continuously improve our relationships and we struggle to make ourselves community-based: multi-local rather than multi-national. And we draw great strength from the growing number of like-minded business people from the cooperative movement and from companies as diverse as Ben & Jerry's and LeviStrauss in the USA, British Telecommunications pic in Europe and Citizens Bank in Japan. Their stories are very different from ours but their aspirarions to do the right thing by all their stakeholders are crystal clear. So this book is as much of a beacon for me and my co-workers as I hope it will be for you and yours. It is a business book for a brighter future, when relationships will be more important to successful enterprises than cash flow. I Iook forward to more reflective, more innovative and more inclusive companies in decades to come, and I hope this book helps them get there.

Anita Roddick OBE
Founder of The Body Shop International Plc

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