In this short video Professor Thomas M. Jones, Boeing Endowed Professor of Business Administration at the University of Washington shares his thoughts on the main challenges for Stakeholder Theory.
Video transcript - Challenges for Stakeholder Theory
I think the biggest challenge with respect to Stakeholder Theory is getting people to understand that economic values can be enhanced by of making these relationships work better.
Stakeholder Theory is I said in answer to more to probably than one earlier question is about relationships.
The hub and spoke model of Stakeholder Theory is about the lines between the core of the company and the stakeholders, and these relationships are where Economic and moral improvements can be made,
and I think that the biggest challenge with the respect to Stakeholder Theory is convincing people that those economic benefits do in fact exist.
It has to do with making a more compelling case for the economic benefits of good firm stakeholder relationships,
that's the way to go, that you can make money and be good, maybe make make more money than you would otherwise.
References and further reading
Corporate Ethics Youtube channel corporateethics
Business Round Table Institute for Corporate Ethics. Thomas M. Jones, http://www.corporate-ethics.org/thomas-m-jones/
Stakeholder Theory resources
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of Cummins explains why she embraces the stakeholder model
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Shareholders or Stakeholders?
Watch this video which summarises why the shareholder versus stakeholder debate is missing the point.
Watch Ed. Freeman answer the key question What are stakeholders?
Watch Thomas M. Jones explain What's next for Stakeholder Theory