Stakeholder Theory

A new paper by Ed Freeman, Yael Grushka-Cockayne and Prem Menghwar outlines the six principles of Stakeholder Theory that can guide projects toward creating value for all stakeholders, including marginalized stakeholders.

Writing for Fortune, R. Edward Freeman, professor at the University of Virginia’s Darden School of Business, says we are approaching a pivotal moment for stakeholder capitalism. As several leaders who have championed a more inclusive, stakeholder-driven approach to business near retirement, who will carry this torch forward?

Darden Professor Dennie Kim looks at the opportunities and challenges organizations will face as they adapt to the rise of Web3 and work to get ahead of the curve.

The United Nations’ Intergovernmental Panel on Climate Change issued its assessment report on the increasing urgency of addressing climate change. Here Ed Freeman connects with Mike Lenox on the urgency around climate change and why stakeholder engagement is vital to solving one of the toughest political, engineering and technological problems.

Spotify is under scrutiny for content on Joe Rogan’s podcast and talent compensation. Darden experts explain how crises can be tempered with good governance — who’s on the board, how it thinks about risk, the business model, strategy, process and culture. Ultimately, “Governance is the way a firm organizes around and executes on its purpose.”

Despite interest in responsible capitalism, promises on stakeholder value are being tested as COVID-19 scars economies across the globe. Professor Parmar sees a mixture of tensions — including matters of health and safety, stresses of pandemic life, issues of justice and equality — as the acid test for companies’ commitment to the stakeholder model

The health of Americans is worse than that of populations of other wealthy nations. The U.S.’ lower health status inflicts costs on individuals, families, businesses and society, all of which are interdependent — as are community health and economic prosperity. What strategies can ensure that vital conditions are met for all Americans?

The goal of social justice movements is to bring about deep institutional and community change, and it’s unavoidable that such a massive mission would spark intense debates. But what happens when people bring that passion to the workplace? Leaders need to be prepared for how to handle sensitive emotional issues among organizational stakeholders.

Darden Professor Ed Freeman and Ben Freeman discuss stakeholder capitalism, the importance of and, and the key concepts we can learn from the problems imposed by the old story of business. They can lead us to a new one.