Freeman vs Friedman

Question 1

What is Friedman 1970 shareholder argument?

Answer 1

• Believes in profits for shareholders

- CSR is not linked to stakeholder theory

Question 2

What is Freeman 1984 stakeholder argument?

Answer 2

• Prioritise stakeholders

- Create value for shareholders through customers, employees, communities and suppliers

Question 3

How can stakeholders be differentiated?

Answer 3

• Ask managers and stakeholders who is the most important individuals
• Who can be affected / affect the organisation
• Do they have any power, legitimacy or urgency?
• How quickly are their needs responded to?
• Differentiation is dependent on value creation

Question 4

How are stakeholder relations managed?

Answer 4

• Every business must consider what is its purpose? Who are we creating value for? This informs the organisation strategy

Question 5

What are the types of organisation strategies?

Answer 5

Enterprise strategy = 1. Focus on customer, employee,s shareholder value
2. All internal publics + suppliers, communities

All organisations will exercise either of these strategies