Proceedings of the International Association for Business and Society

Volume 18, 2007

Proceedings of the Eighteenth Annual Meeting

Stakeholder Risk as Experienced by Non-Shareholder Stakeholders
An Ethical Analysis and Risk Magnitude Model

In this paper, we explore the interests of non-shareholder stakeholders in the context of a shareholder risk model. We first differentiate shareholders and nonshareholders with regard to the nature of their risks, their awareness of risks, their abilities to avoid risk, and their abilities to ensure compensation for risk. We then develop a model of measuring the risks facing stakeholders that addresses human risk magnitude and environmental risk magnitude. We conclude with implications for theory and practice.