Stakeholder theory and managerial decision-making: Constraints and implications of balancing stakeholder interests [Book Review]

Journal of Business Ethics 64 (3):285 - 301 (2006)
Abstract
Stakeholder theory is widely recognized as a management theory, yet very little research has considered its implications for individual managerial decision-making. In the two studies reported here, we used stakeholder theory to examine managerial decisions about balancing stakeholder interests. Results of Study 1 suggest that indivisible resources and unequal levels of stakeholder saliency constrain managers’ efforts to balance stakeholder interests. Resource divisibility also influenced whether managers used a within-decision or an across-decision approach to balance stakeholder interests. In Study 2 we examined instrumental and normative implications of these two approaches. We conclude by considering the contributions of this research.
Keywords stakeholder management  ethical decision-making  balancing stakeholder interests
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