1.22. Stakeholder theory

Stakeholder theory evolved from Freeman’s (1984) stakeholder approach to strategic management in the mid 1980ies. Freeman argued that monitoring and satisfying the interests of relevant stakeholders ultimately leads to improved corporate performance and sustainability. Stakeholder theory expanded to include descriptive ways of modelling and understanding organisations, ethical considerations of how organisations should interact with society and finally to provide evidence supporting the benefits of stakeholder management (Donaldson & Preston, 1995). The theory has spread to several disciplines, including e-Government where the theory has been applied related to managing the ongoing e-transformation (Scholl, 2005) and has been suggested as a suitable approach for investigating both ethical and practical aspects of changes in the relationship between governments and their constituents caused by implementation of new technology (Flak & Rose, 2005).







References:

Donaldson, T., & Preston, L. E. (1995). The Stakeholder Theory of the Corporation - Concepts, Evidence, and Implications. Academy of Management Review, 20, 65-91.

Flak, L. S., & Rose, J. (2005). Stakeholder Governance: Adapting Stakeholder Theory to the e-Government Field. Communications of the Association for Information Systems, 16, 642-664.

Freeman, R. E. (1984). Strategic Management. A Stakeholder Approach. Boston: Pitman.

Scholl, H. J. (2005). Involving Salient Stakeholders: Beyond the Technocratic View on Change. Action Research (AR), 2, 281-308.

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