This Case is about ORGANIZATIONAL CULTURE
PUBLICATION DATE: May 15, 2013 PRODUCT #: BH531-PDF-ENG
Companies must allocate some minimum sum of value to stakeholders as a way to keep access to the resources they offer. Stakeholder theory implies supervisors optimize business-level functionality by allocating more than this minimum sum. Yet, how much is too much? This informative article addresses the misleading belief that more is always better in regards to treating stakeholders and, in doing so, supplies desired refinement of the limit of the predictions of stakeholder theory. The upside for supervisors is guidance in differentiating between the types of value-allocating behaviours that can lead to greater value development in activities and their businesses which will probably lessen total worth.
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