Tensions in Stakeholder Theory

TLDR

Stakeholder theory and strategic management are said to be in tension, partly because they aim to solve different problems. The authors propose that the two fields can overlap and mutually benefit from a pragmatist philosophy. They find that most tensions between stakeholder theory and strategic management are illusory, arising from differing narratives, and that some tensions could help integrate the two disciplines.

Abstract

A number of tensions have been suggested between stakeholder theory and strategic management (SM). Following a brief review of the histories of stakeholder theory and mainstream SM, we argue that many of the tensions are more apparent than real, representing different narratives about stakeholder theory, SM, business, and ethics. Part of the difference in these two theoretical positions is due to the fact that they seek to solve different problems. However, we suggest how there are areas of overlap, and we argue that some of the tensions may, instead, provide interesting ways to put the two areas of scholarship and practice together. We maintain that SM and stakeholder theory could mutually benefit from a more pragmatist philosophy.