ipl-logo

Stakeholder Theory Of Conscious Capitalism

983 Words4 Pages

John Muir, a pioneer in naturalist, once quoted that “when you tug at a single thing in nature, you find it attached to the rest of the world.” This meaningful quote can be applied to business management, which is a subject that has interconnected relationships with different stakeholders. While people generally perceive the purpose of doing business is to maximize the return on investment for their shareholders, Professor R.E. Freeman believes on conscious business, which is also known as conscious capitalism. Conscious business emphasises on its ecosystem. It aims to create and optimise value for all stakeholders of the business, where this act is suggested to be able to lead a healthy, sustainable and resilient business, thereby to maximise the shareholders’ wealth.
Conscious business comprises four arms: Purpose, Culture, Leadership and Stakeholders (Figure 1). With reference to the title, this text focuses on the Stakeholder Theory of conscious capitalism.
Figure 1. Conscious Capitalism …show more content…

This is because without the stakeholders such as employees, customers, suppliers, funders, supportive communities and life-sustaining ecosystem, business and profit would not exist. In the other words, in order to make a business successful, the business must create values for all its stakeholders. Professor R.E. Freeman suggests that if we only focus on the interest of the shareholders alone, capitalism does not

Show More
Related
259 Words | 2 Pages

A Stakeholder is any individual who has a vested interest in a business and is affected by the organisations decisions and strategies (Pride, Hughes & Kapoor 2015, p. 10). Therefore, the people most affected by Graeter’s decisions to take a long term view of the business rather than aim for short term profits are the family members who have a stake in the business. At the present, Richard Graeter II (CEO), Robert Graeter (vice president of operations) and Chip Graeter (vice president of retail operations) manage the business and are responsible for all the decisions regarding its operations. Graeter’s management team have chosen to forgo the opportunity for short term profits by adhering to the traditional manufacturing process used by Louis

Read More
1016 Words | 5 Pages

A stakeholder is someone who has interest or concern for an organisation or business. Stakeholders can be affected by policies, aims and objectives. An example of stakeholders would be employees and the government. Stakeholders can be individuals, groups and organisations. Owners of a business would be concerned about profit the business or organisation makes.

Read More
1630 Words | 7 Pages

In this highly competitive world, money is one of the most significant factors for people to survive because people use money to satisfy their desires such as clothes, food, and medicines. A company will gain profit from the amount of money that people used, but only profit cannot make company to be sustainable. Hence, every corporation should be concerned about the triple bottom lines which can lead company to be sustainable. The Triple Bottom line or TBL was created by the founder of British consultancy called sustainability, John Elkington since 1994 (economist, 2009). The triple bottom line is separately in three categories, including profit, planet, and people.

Read More
1172 Words | 5 Pages

Know Your Business Environment Unit No. 1: The Business Environment Pervez Ghazi Shaikh Date Submitted: 31/10/2016 Carl Loraine Cruz 20154176   Target is the organization that I have chosen for this assignment. Target is a famous discount retailer in United States that was founded by George Dayton. It was formerly called Dayton’s Company in 1910.

Read More
498 Words | 2 Pages

A successful dissemination has three goals awareness, understanding, and action and specific strategies are used to reach targeted audience (Myers & Barnes, 2004). Awareness brings attention to the study or new practice to the maximum number of stakeholders. Understanding provides a rationale or purpose of the study or new practice and action demonstrates how the study was implemented and provides an evaluation report. Selecting one or more of these goals that are appropriate for the target audience will increase the likelihood that the new practice will be accepted by key stakeholders as well as influence and increase the motivation of other healthcare organizations to implement the practice (Agency for Healthcare Research and Quality [AHRQ], 2012). This paper provides a summary of strategies to disseminate the trial results of using alcohol disinfectant caps (ADCs) to prevent central line-associated bloodstream infections (CLABSIs) to key stakeholders over a 2-month period followed by dissemination to the greater nursing collective.

Read More
720 Words | 3 Pages

"When most people think of corporate responsibility, they are focusing on a business 's effect on and relationship to stakeholders. A Responsible Business sees stakeholders as full partners and meaningful instruments for the evolution of healthier communities and more successful businesses” (Sanford Page number). Carol Sanford, a rhetorician, educator, and author of the novel, The Responsible Business: Reimaging Sustainability. In this novel, Carol Sanford takes her readers on a journey. She gives the inside scoop on what it’s like to be in the business world when it comes to team work, growth, and stability.

Read More
1043 Words | 5 Pages

The Stakeholder Salience Theory, created by Mitchell, Agle and Wood, are based upon the combination of the three relationship attributes to generate general types of stakeholders. These attributes include: Power; Legitimacy; Urgency. “Stakeholder salience” is defined as the degree to which managers give priority to competing stakeholder claims. Therefore if a stakeholder consist of all three attributes, he/she/it will be of most importance and will have more rights and privileges than a stakeholder that consists of only one of the three attributes. As seen in the picture on the right, you can differentiate between the different types of stakeholders, according to where they get placed given the attributes they consist of.

Read More
755 Words | 4 Pages

Stakeholder analysis Stakeholder are entity that will affect the organization actions, objectives and policies. There are two types of stakeholder which is internal stakeholder and external stakeholder. The McDonald’s stakeholders are customers, suppliers, employees, managers, government, local communities and pressure groups. Customers Customers are the external stakeholders of the company, no customer mean zero profit.

Read More
1687 Words | 7 Pages

Businesses have been playing a crucial role in people’s lives. No matter what they go or what the occupations they are; people are drawn to get involved in businesses. However, behind the scenes of the business thriving, the environment is deteriorated each day. Many development schemes are come up with the plan related with the depletion of the environment (Shah, 2002). Because of people and environmental damages, attentions were drawn to corporations for ensuring their sustainabilities.

Read More
941 Words | 4 Pages

Introduction This case study explores the acquisition of the Body Shop, which is one of the largest franchise cosmetics companies in the world, by L’Oreal. The main concentration of the case study aims at investigating the impact on business ethics and corporate social responsibility by the concentricity of the Body Shop and L’Oreal and how the general attitude and buying behaviour is distorted in the course of this acquisition. L‘Oreal being the big conglomerate in the cosmetics industry acquired the Body Shop International which is comparably small but having iconic brand of environmental and socially responsible concerns, on 17 March 2006, through a covenant of $1.2 billion. The combination of two brands in a newly formed conglomerate implies a combination of values, principles and associations that might affect a company’s appeal. The verity that L 'Oreal 's acquisition of the Body Shop provides plenty of potential growth opportunities is undeniable; nevertheless the question of how well the acquisition sits in the group of the world 's largest cosmetics company is another matter.

Read More
730 Words | 3 Pages

Stakeholder define as a person, group or organization that has interest or concern in an organization. Some examples of key stakeholders are shareholders, employee, suppliers, customers and government. Not all stakeholders are equal. A company 's customers are entitled to fair trading practices but they are not entitled to the same consideration as the company 's employees.

Read More
898 Words | 4 Pages

As an entrepreneur, I believed that one should consider business risks rather than personal ones. This is because they will determine the success of the business. However, the author said that people should consider themselves and do what makes them happy (Komisar and Kent 3). One should consider pursuing things that bring joy to one’s life rather than doing business for the sake of getting money. We should consider the environment that we work in and the value that it adds to our lives rather than thinking about the financial benefits only.

Read More
963 Words | 4 Pages

3. Stakeholders: Definition:A person, group or organisation that has interest or concern in an organisation. Stakeholders can affect or be affected by the organisation 's actions, objectives and policies. Some examples of key stakeholders are creditors, directors, employees, government (and its agencies), owners (shareholders), suppliers, unions, and the community from which the business draws its resources. Not all stakeholders are equal.

Read More
2393 Words | 10 Pages

Here you look on the difference between benefits and harms for the society and if the benefits are greater than the decision or an action is considered as ethical, if lower – unethical. Here it is important to identify the stakeholders and an effects on them from actions or decisions of a company. “You can think of a stakeholder as a person or organization that can affect or be affected by your organization. Stakeholders can come from inside or outside of the organization. Examples of stakeholders of a business include customers, employees, stockholders, suppliers, non-profit community organizations, government, and the local community among many others.”

Read More
997 Words | 4 Pages

The History of Business Ethics and Stakeholder Theory in America Ethics play a huge role in the global business field, since considerations have to be made on moral practices, values, and judgments that govern the direction and overall success of the company. Consequently, over the progression of history, managers, entrepreneurs, and stakeholders at the helm of organizations have always had the mandate of making moral resolves on matters of ethics. According to Hunter (2003), such an approach to ethical behavior prompts a substantial growth in the organizational corporation, as well as maximizing business profits, and creating a reputable company image (Cutler, 2004). Notably, the overall performances of organizations that take part in unethical

Read More

More about Stakeholder Theory Of Conscious Capitalism

Related Topics

Open Document