Manager should be considered a stakeholder Essay

Manager should be considered a stakeholder - Essay Example Thus, in 1984 Freeman offered a stakeholder theory, claiming that an organization can maximize its value only through common benefits of all the relevant persons and groups. Not only stockholders should complete control over a firm, while investors, employees and suppliers also take part and risks in creation of the business’s success. Stakeholder theory is based on doctrine of Fair Contracts, Feminist Standpoint Theory, and ecological principles. R. Edward Freeman shares his observations concerning business ethics, pointing out to the facts that: â€Å"organizations without a history of mutually accepted shared values tend to come apart during stress†, while â€Å"people in touch with core values can deal with change, ambiguity, stress, and tough times†. He also suggests that â€Å"people tend to avoid the ambiguous yet that is what tends to be the most rewarding† and that â€Å"individuals need organizational support to act morally† (Freeman 1984) . Freeman, Wicks, Parmar (2004) state that capitalism should be understood as â€Å"creating value for stakeholders† (p.366). At that â€Å"the goal of creating value for stakeholders is decidedly pro-shareholders†, while a manager creates shareholder value through creating qualitative products and services for customers, offering excellent jobs for employees, building favorable relationships with suppliers and competitors, and being a good citizen in the community. Finally, under such conditions an organization is not likely to have problems with governments. Creating stakeholder value managers are able to assume potential entrepreneurial risks. First of all, considering all the possible interests and stakeholders you avoid potential conflicts. Further, it is possible to cooperate with suppliers and customers to jointly test new products and services. Working in the name of increased profitability for the shareholders