A stakeholder management model for ethical decision making

This paper discusses the role of stakeholder management for improving ethical decision-making processes within organisations. It presents the key concepts and approaches developed within stakeholder theory and analyses their implications from a management perspective. The concept of ‘stakeholder corporation’ is introduced, and the need for effective engagement with stakeholders discussed under two different perspectives of stakeholder theory, namely the instrumental vs. the normative approach. In the conclusion, a ten-step model for stakeholder management is presented as a ‘management tool’ that could be applied to improve decision-making processes within any organisation, by enabling managers to identify and respond to legitimate stakeholders’ interests.