Managing in the Gray

Managing in the Gray

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Look Past the Stakeholders

What about thinking in terms of duties to stakeholders? This

is the conventional alternative to a sharp focus on returns to

shareholders. This view says that, when you make important

decisions, you should be responsive to the interests of outside

groups, and not just shareholders.

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Typically, these groups

are an organization’s customers or clients, employees, suppli-

ers, government regulators, and the communities where the

organization operates.

Is stakeholder analysis the right way for managers to grasp

their basic duties? The answer is a qualified no. The stake-

holder view is valuable and important. It is a strong, practical

antidote to narrow preoccupation with profits. It tells manag-

ers t ...