Managers as Stakeholders

In order to answer the question if a manager should, or should not be considered a stakeholder, one should ask and answer first, two fundamental questions. First, what does a manager do in an organization? The manager’s job in an organization includes, but is not limited to analysis making, planning, organizing, directing, controlling, decision making, public relations, recruiting, staffing, facilitating a positive workplace environment, and ensuring that objectives and goals of the organization are achieved. Job performance, policy and decision making of a manager can affect positively or negatively part or all stakeholders. This opens the path for the second question, what is a stakeholder? According to Lawrence and Weber (2011), “the term stakeholder, refers to persons and groups that affect, or are affected by, an organization’s decisions, policies, and operations” (pg. 7). The word stake financially speaking means an interest in a business enterprise (Lawrence & Weber, 2011). The word holder means one that possesses or controls something (thefreedictionary.com). Therefore, by logic, the word stakeholder in this context can be interpreted as one who possesses an interest in or controls a business enterprise. In this sense, one can reasonable argue that managers are stakeholders, because managers not only possess personal and professional interests in the business they manage, but are also in a position of control of such business.

This perspective of managers as stakeholders has been shadowed for many years by the ownership theory of the firm, which is a traditional view that the business is the sole property of its owners. This theory puts managers in a position where they have to prioritize the shareholder’s interests over others, that is, to maximize the shareholder’s return. This practice is responsible for unethical proceedings, and civil and human rights violations. According to a publication in the Harvard Law Review (2009) many companies have...