Its good to see Karl Marx explaining economics on YT

Congrats on your educational initiative colleague 🙌

The entire system is built on shareholders NOT making those decisions. They are the owners. Directors of that company have a different role in the company. Shareholders will buy and sell as they like, but it's based on the performance of that company, they aren't there to run the company. Stakeholder theory has the same goal as Friedman but a different perspective, instead of a focus on profit maximisation a focus on stakeholders will result in profit and value maximisation.

How can I get research papers which applied the stakeholder theory ?

@oscartaverna194

2 жыл бұрын

kramer&porter shared value is an extenction of stakeholder theory. If you search through Google Scholar you should find a pletora of papers

it depends on what you mean saying "pay attention"

waiting for the explanation of how "pay attention" to stakeholders contributes to add value. I do believe that all corporations at a certain level pay attention to stakeholders but there is a clear clash between the adverse relationship of perfect competition/profit; with direct consequences for consumers and community. Also, internal cost reduction contributes to profit maximization which is one of the primary goals of a corporation; this directly impacts in employees and suppliers' wealth.

@osakoedward

Жыл бұрын

One way is to pay employees a salary that matches their skills. To attract the best of the best, your remuneration incentives should be above the industry average and highly competitive. Think of it as paying attention to the value that stakeholders bring to the company.

@DeMenteMinds

8 ай бұрын

Read up on GE. It went full Friedman and at some point had more than half of its revenue come from financial services. Not product releases, research, inventions, or market penetration, but finance. It was justified by “we are increasing shareholder value.” They ignored the communities they abandoned, the employees they stress tested, the influence they were having in corporate America. Look where they are now.

As a matter of fact, I believe that shareholder & stakeholder theories differ in where they come from but in fact, nowadays, they come to the very same conclusions. Because in today's world, it's impossible to have a profit-only driven company without looking at CSR and SRI at all. On the contrary, CSR & caring about people & the planet became an important part of it. And, in fact, it comes to a balance (more or less, even if it's not the ideal balance that the stakeholder theory supporters

@balenol1209

6 ай бұрын

>Because in today's world, it's impossible to have a profit-only driven company without looking at CSR and SRI Hi, it's been eleven years now, I think you're wrong. Greenwashing is a thing, for example.

22:24 Michal Pardo As to Friedman vs Freeman - that's part of what I was hinting at in our discussion before; i.e. I think that people misunderstand Friedman because when they hear shareholder they think of blood-and-money sucking capitalists and only that. (By the way, not sure if you've noticed the fact that you've started using the term capitalist with a negative connotation - something I totally disagree with!)

Ideas like stakeholder theory can only survive in universities where their performance isn't tested

Ah, but that begs the question. The shareholders should make that decision. The shareholders should make the assessment of whether or not there is conflict - not R. Edward Freeman. Finally, presuming that Milton Friedman would be for this (i.e. stakeholder view) is a terrible mistake.

I am against that too..... especially considering market and environment sustainability but generally human kind is greedy and short-term profits whisper to humans' greediness.

would like). Nevertheless, the approach is about freedom - what Friedman believed in is that everyone has free will and can do whatever they want with it. Ergo, companies do what their owners want them to (shareholder theory). Should they do more? Yes, if it increases their profits. (again, ShareholderTh) Should they do even more? Stakeholder theory says yes, shareholder theory says no. I say that if the society as a whole thinks they should do more, enact laws to do so .

Go Hoos

he does need a good shave

("Those bastards should pay!" G.) But the basic question is the one of choice - should the owners be free to do what they want (within the scope of the law, of course) or should they be forced to do more? That's the question of the difference between the two approaches:)

@osakoedward

Жыл бұрын

The very survival of their business compels them to not do what they want.