A stakeholder theory of the modern corporation资料.doc

A stakeholder theory of the modern corporation
In the following reading, R. Edward Freeman (not to be confused with the author of the first article in this section, Milton Friedman) presents his stakeholder theory of the modern corporation. Freeman is widely recognized as the foremost advocate of stakeholder theory. Like Carroll, Freeman takes issue with some of the central claims made by Milton Friedman.
Freeman presents stakeholder theory in opposition to a view he describes as "managerial capitalism." Managerial capitalism prioritizes the interests of stockholders over all the interests of all other groups affected by pany. Freeman advances two general arguments against managerial capitalism.
The first is that the law requires corporations to pay attention to the interests of groups beyond those of stockholders. Environmental law is a good example of this. Firms are now often held liable for cleaning up pollution on their lands even though the pollution has not migrated off site. Another example is that of provincial and federal human rights legislation, which requires non-discriminatory practices in employment. Thus, on Freeman’s view, the law increasingly panies to pay attention to stakeholder interests.
The second argument advanced by Freeman is based on the claim that profit-maximizing activities on the part of corporations will maximize the production of wealth (wh