Managing for Stakeholders

Discipline: EAD5963-2

Concentration area: 12139

Number of Credits: 8

Course load:

(Per week)
(Per week)
(Per week)
• Discuss the basic concepts of the Stakeholder Theory, covering topics such as stakeholder management, strategy model for stakeholders, stakeholders prioritization, key concepts of value for stakeholders, stakeholder analysis.
• Demonstrate the importance of good stakeholder management to a higher organizational performance.
• Enable the student in understanding the Stakeholder Theory.
• Methodologically enable students to develop a scientific paper.

The Stakeholders topic is currently studied by several researchers in Brazil and the world. Signs of the importance of this issue can be seen in the growing number of papers on this subject published in journals and presented at scientific conferences in Brazil and abroad.
The stakeholder theory emerges in the 80's, not even as a theory, but as a concept, to address the needs of concerned organizations with social issues of managing relationships with individuals. The theoretical framework underlying the stakeholder theory is the work of Freeman in 1984, according to which stakeholder is any individual or group that may affect the achievement of organizational objectives or that is affected by the process of seeking these objectives. According to stakeholder theory, the objective function of the company is act as a vehicle to coordinate the interests of stakeholders.
Briefly, it can be said that the management of stakeholders understands the organization's ability to identify who are its stakeholders and their interests, goals and capacity to influence the organization, understand the processes that can be used for the organization understand the processes that can be used for the organization to relate to these stakeholders and deduce what decisions best suited to align the interests of stakeholders with the organization's processes. Stakeholders management is part of the organization's strategy and constitutes a variable that influences their financial performance. Due to these reasons, it is important to study the various aspects involved in the management of stakeholders, which are addressed in this discipline.

Class Content
1st Presentation of Discipline and of the Participants. Structuring of papers.

2nd Stakeholder Theory:
- Concepts of stakeholders
- Objective function of stakeholder theory
- Objective function of theory of the firm

3rd Stakeholder Analysis:
- Freeman’s model
- Mitroff’s model
- Stakeholders map

4th Stakeholders Prioritizing:
- Salience of stakeholders
- Dominance of stakeholders

5th Work presentation - Definition of Research Problem / Objectives / Methodology

6th Dimensions of Stakeholders Theory:
- Normative, descriptive and instrumental dimensions - Jones (1995), Evan & Freeman (1993),
and Phillips (1997).

7th Stakeholder Theory:
- Limits of the theory
- Critics to the theory

8th Work presentation – Report of Data Collection Conclusion

9th Stakeholders Strategy:
- Generic model of Freeman
- Specific model of Freeman
- Model of Savage et al.

10th Stakeholder Management:
- Stakeholder management - Harrison, Bosse & Phillips (2010)
- Stakeholder theory, value and performance - Harrison & Wicks (2013)

11th Work presentation - Data Analysis Report

12th Corporate Performance:
- Corporate social performance - CSP
- Corporate financial performance - CFP
- Relationship between CSP and CFP

13th Stakeholders and Value:
- Value creation for Stakeholders
- Value creation by Stakeholders

14th Presentation and Discussion of Papers

15th Presentation and Discussion Papers

Avaliation methods:
Reading sheets (20%) and a paper, that can be made in pairs depending on the number of students, addressing at least one of the issues of the discipline and may

The paper should be delivered in the last class, and it could constitute a bibliographic review.
The program has 15 classes, in which are developed 5 classes with methodological orientation on structuring a paper. The discipline has counted with participation, via webconfere, of Professor Jeff Harrison of University of Richmond, Professor Jennifer Griffin of The George Washington University, and Professor Richard Priem of Texas Christian University. During the sessions with them, they answer several questions from the audience about their famous papers about Stakeholder Theory, and provide suggestions for research projects.

Class 2: Stakeholder theory
BOAVENTURA, J. M. G.; CARDOSO, F. R; SILVA, E. S.; SILVA, R. S. Stakeholders Theory and Theory of the Firm: a study on the hierarchyof objective-functions in Brazilians companies. Revista Brasileira de Gestão de Negócios, v.11, n.32, p.289-307, 2009.
Donaldson, T., & Preston, L. E. (1995). The stakeholder theory of the corporation: concepts, evidence and implications. Academy of Management Review, 20 (1), 65-91.
Friedman, A. L., & Miles, S. (2006). Stakeholders: Theory and Practice. New York: Oxford University Press, 19-35.
Jensen, M. (2001). Value maximization, stakeholder theory, and the corporate objective function. Journal of Applied Corporate Finance, 14(3), 8-21.

Class 3: Stakeholder Analysis
Boaventura, J. M. G., & Fischmann, A. A. Stakeholder Analysis for Scenario Planning: A Study in the Retail Automation Industry in Brazil. In: Strategic Management Society 23rd Annual International Conference, 2004, San Juan - Porto Rico. Proceedings... San Juan: SMS, 2004.
Freeman, R.E. (1984). Strategic Management: a stakeholder approach. Boston: Pitman,85-101.
Mitroff, I. I. (1983). Stakeholders of the organizational mind: toward a new view of organizational policy making. San Francisco: Jossey-Bass Publishers.

Class 4: Stakeholders Prioritizing
Boaventura, J.M.G, Bandeira-De-Mello, R., Monzoni, M.P., Simonetti, R., & Mascena, K.M.C. Stakeholder Prioritization: the industry relationship. In: Strategic Management Society 33rd Annual International Conference, 2013, Atlanta. Proceedings... Atlanta: SMS, 2013.
Mitchell, R.K., Agle, B.R., & Wood, D.J. (1997). Toward a theory of stakeholder identification and salience: defining the principle of who and what really counts. Academy of Management Review, 22 (4), 853-886.

Class 6: Dimensions of stakeholders theory
Jones, T. M. (1995). Instrumental Stakeholder Theory: A Synthesis of Ethics and Economics. Academy of Management Review, 20(2), 404-437.
Evan, W. M., & Freeman, R. E. (1993). A stakeholder theory of the modern corporation: Katian capitalism. In: Donaldson, T.; Werhane, P. H. (Eds.) Ethical issues in business. Englewood Cliffs: Prentice-Hall, 166-71.
PHILLIPS, R. (1997). Stakeholder Theory and a Principle of Fairness. Business Ethics Quarterly, 7(1), 51-66.

Class 7: Stakeholder Theory
Boaventura, J.M.G, Bandeira-De-Mello, R., Monzoni, M.P., & Simonetti, R. Stakeholder Dominance: Empirical Evidences. In: Strategic Management Society’s Special Conference, 2013, Glasgow. Proceedings of the SMS Special Conference, 2013.
Phillips, R, A. (2003). Stakeholder theory and organizational ethics. San Francisco: Berrett-Koehler Publishers, 13-39.
Phillips, R. A., Freeman, R. E., & Wicks, A. C. (2003). What Stakeholder Theory Is Not. Business Ethics Quarterly, 13(4), 479-502.

Class 9: Stakeholders Strategy
Freeman, R.E. (1984). Strategic management: a stakeholder approach. Boston: Pitman, 127-152.
Savage, G. T., Nix, T. W., Whitehead, C. J., & Blair, J. D. (1991). Strategies for Assessing and Managing Organizational Stakeholders. Academy of Management Executive, 5(2), 61-75.

Class 10: Stakeholder Management
Harrison, J.S., & Wicks, A. C. (2013). Stakeholder Theory, Value, and Firm Performance. Business Ethics Quarterly, 23(1), 97-124.
Harrison, J.S., Bosse, D.A., & Phillips, R.A. (2010). Managing for Stakeholders, Stakeholder Utility Functions, and Competitive Advantage. Strategic Management Journal, 31(1), 58-74.
Freeman, R.E. (1984). Strategic management: a stakeholder approach. Boston: Pitman, 52-81.

Class 12: Corporate Performance
Griffin, J.J., & Prakash, A. (2014). Corporate Responsibility: Initiatives and Mechanisms. Business & Society, 53(4), 465-482.
Griffin, J.J. (2000). Corporate Social Performance: Research Directions for the 21st Century. Business & Society, 39(4), 479-491.

Class 13: Stakeholders and Value
Priem, R. L. (2007). A consumer perspective on value creation. Academy of Management Review, 32(1), 219-235.
Tantalo, C., & Priem, R. L. (2014). Value creation through stakeholder synergy. Strategic Management Journal, 37(2), 314-329.
Priem, R. L., Butler, J. E.,& Li, S. (2013). Toward reimagining strategy research: retrospection and Prospection on the 2011 AMR decade award article. Academy of Management Review, 38(4), 471–489.