This work - the first of a two-volume series - argues that stakeholder thinking has evolved into the study of interactive, mutually engaged and responsive relationships that establish the very context of doing modern business, and create the groundwork for transparency and accountability. The book makes it clear that in today's societies successful companies are those that recognise that they have responsibilities to a range of stakeholders that go beyond mere compliance with the law or meeting the fiduciary responsibility inherent in maximizing returns to shareholders. If in the past, the focus was on enhancing shareholder value, now it is on engaging stakeholders for long-term value creation. This process can no longer be called "stakeholder management", which the authors argue is outdated and corporate-centric. Companies may be able to manage their relationships with stakeholders, but frequently cannot actually manage the stakeholders themselves, because, as the activist initiatives described in this volume suggest, company-stakeholder relationships are not one-way streets. Different institutions bring different agendas, goals, and priorities to the engagement.
There are clear implications to the way in which stakeholder thinking is unfolding today. If until recently, corporate "social" responsibility was simply seen as profitability plus compliance plus philanthropy, now responsible corporate citizenship - or corporate responsibility - means companies understanding the societies in which they operate and recognising that day-to-day operating practices affect stakeholders. Responsibility lies in these impacts, not merely in efforts to "do good". Companies are now faced with a wide array of challenges that mean that senior executives and managers need to be able to deal with issues including greater accountability, human rights abuses, sustainability strategies, corporate governance codes, workplace ethics, stakeholder consultation and management. Stakeholder thinking needs to capture these new realities. The global reach of multinational corporations has served to highlight the need for the (re)integration of business into society, relationships into stakeholder relations, and ethics into managerial practice.
The rise in power of global activism involving NGOs, and global business involving multinational corporations, makes it even more critical today for companies to consider the power and interests of corporate stakeholders when developing strategic plans. The interactivity and mutuality of relationships described in this book make it clear that corporations and their stakeholders share the power and responsibility to influence both the profit potential of business and how the benefits of business success impact upon society. This volume brings together leading academic thought on stakeholder thinking. "Unfolding Stakeholder Thinking" should be useful to corporate managers, NGOs and academics seeking greater understanding of the dynamics of stakeholder thinking in a world of rapidly changing responsibilities. A companion volume, "Unfolding Stakeholder Thinking 2", focusing on practical issues such as relationship management, communication, reporting, and performance will be published in Spring 2003.