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Busch, T., Barnett, M. L., Burritt, R. L., Cashore, B. W., Freeman, R. E., Henriques, I. et al. (2024). Moving Beyond “the” Business Case: How to Make Corporate Sustainability Work. Business Strategy and the Environment, 33, 776-787.
https://doi.org/10.1002/bse.3514

has been cited by the following article:

• TITLE: Normatively Reconciling Shareholder and Stakeholder Theories: The Ethical Responsibility of Business Is to Serve Its Shareholders by Serving Its Stakeholders

  AUTHORS: Muel Kaptein

  KEYWORDS: Shareholder Theory, Stakeholder Theory, Corporate Social Responsibility, Business Ethics, Corporate Governance

  JOURNAL NAME: Open Journal of Business and Management, Vol.13 No.2, March 13, 2025

  ABSTRACT: Shareholder theory and stakeholder theory are often regarded as contrasting perspectives. Numerous studies have attempted to reconcile these perspectives by arguing and empirically demonstrating that serving stakeholders can be profitable for shareholders. However, the risk of this instrumental approach is that a company may not feel compelled to serve its stakeholders if empirical evidence for such benefits is lacking or even contradicts the premise in its specific context. Therefore, this article adopts a normative-ethical approach that offers a moral foundation applicable to all companies. By revising a single flawed presumption in the argument of Milton Friedman, the most prominent advocate of shareholder theory, it becomes possible to normatively reconcile shareholder theory with stakeholder theory. From a normative-ethical perspective, shareholders, as owners of the company, should not be focused solely on their own interests but should also consider their company’s responsibility to serve the interests of other stakeholders. This stakeholder responsibility of shareholders has significant theoretical and managerial implications.