N.E. So shareholder primacy only focuses on the well-being of shareholders, whereas stakeholder theoryStakeholder TheoryStakeholder theory refers to the ethical concept that addresses business decisions, trends, profits and their collective impact on all stakeholders, including the shareholders, employees, financers, government, customers and suppliers.read more focuses on the well-being of all related parties to a project. The stakeholder theorists smell blood. Actually, the answer is no. If prices measure opportunity costs and benefits, the net value of an activity can be determined by subtracting the price of resources devoted to an activity from the sales revenues generated by the activity. When taken into account, these factors, which include the interests of stakeholders, may benefit the firm in different ways (e.g. / This narrow focus makes a companys goals simpler and easier to achieve. Requested URL: www.ukessays.com/essays/finance/advantages-and-disadvantages-of-shareholder-value-approach-finance-essay.php, User-Agent: Mozilla/5.0 (Windows NT 6.1; Win64; x64) AppleWebKit/537.36 (KHTML, like Gecko) Chrome/103.0.0.0 Safari/537.36. J.E. That means they have to answer to stakeholders while balancing the diverging interests of stakeholders. Notwithstanding this argument, the shareholder-wealth-maximization principle has been the subject of criticism from many economists, social activists, prominent business executives, and politicians. Note, however, that Post, Preston and Sachs, who take a more instrumental than normative view of stakeholder theory, embrace a wider enumeration of stakeholders, including regulatory authorities, governments and unions. Net Present Value (NPV) estimates the profitability of a project and is the difference between the present value of cash inflows and the present value of cash outflows over the projects time period. Alternatively, please submit a query through our website. Shareholders are considered the owner of a corporation, and shareholder primacy protects their interests. Such a non-compete provision will often continue in force for a certain time after the individual ceases to be a shareholder of the company. 27 Wind Turbines set for Renewable Development in Denbighshire, New Homes at Llandudno Junction Development in High Demand. 13. Stakeholders are often individuals that a company hopes to attract who have displayed an ability to successfully manage other businesses or have developed important relationships. Here we discuss criticism, background, and is shareholder primacy legally mandated, along with advantages and disadvantages. Yet, [it is still a] blurring of the distinction between the pursuit of self-interest on the part of individuals and the maximization of profit on the part of firms (p.109) Thus, the potential moral hazard in the relationship between managers and shareholders is likely to be misjudged and the genuine conflicts also arise since manager is unable to take shareholders side instantly for every moral action he made. CFA And Chartered Financial Analyst Are Registered Trademarks Owned By CFA Institute. Management will be shaky to take the optimal risk to earn the optimal return because increasing risk may lead to negative earnings also. To save content items to your account, We begin by summarizing the economic rationale behind and the welfare consequences of managers pursuing this principle. However, the most recent writings by the leading proponents of the social contract theory including T. Donaldson and T.W. What are the pros and cons of being a shareholder? Preference of lenders: Lenders to a company will often prefer for a shareholders agreement to be in place as it allows greater transparency on how the company is run and often contains exit clauses for lenders. J. Magretta, What Management Is: How It Works and Why Its Everyones Business (New York: Free Press, 2002), 3033. Shareholders expect the agents and its workers to make decision accordingly to principle interest. 10. Shareholder primacy is a shareholder-centric form of corporate governance that focuses on maximizing the value of shareholders before considering the interests of other corporate stakeholders, such as society, the community, consumers, and employees. Shareholders primacy is a belief in most parts of the world. Such shareholders also try to influence the company's policies and decisions. Rational strategy is often employed by large companies because their missions and goals tend, The relative disadvantages outweigh the advantages of having the firms CEO also serve as the firms Chairperson. Share it with your network! On the contrary, others believe that shareholders do not actually own the company and that companies are considered legal entities in and of themselves. These include what are the responsibilities of a shareholder? He questions how far beyond a manager should rely on shareholders interests without noticing stakeholders concerns in which it reveals that there are limitations of any theoretical approach to business ethics that takes obligations to shareholders as the sole criterion of ethical conduct in business (p.112) My view is consistent with Heaths view on the stockholder model in which I will argue that even though managers should act towards owner, When firms become large and complex, top management often designs several levels of hierarchy for functionality and delegate corporate entrepreneurship to employees at lower level. The percentage of managers choosing the first option varied from lows of 8% (Japan) and 11% (Singapore) to highs of 34% (Canada), 35% (Australia) and 40% (the United States). Note that I am considering only the normative version of the theory, which states how managers ought to behave. Instead, it fell. This conduct is debatable and has been criticized on many platforms. Ethical principles, such as honesty, keeping firmly to ones word, and the sanctity of human beings, constrain individual behavior in situations ill-suited for the states heavy hand. Please contact us at [emailprotected] or call us on 029 2009 5500 to speak to one of our team. Most commonly, that relationship is the one between shareholders, as principals, and company executives, as agents. Friedman can conclude this because he has in mind a world where social activity and profit-making activity are completely independent (as is the case for corporate charity). Agency Theory Definition: A principle that is used to explain and resolve issues in the relationship between business principals and their agents. series introduced the CAPM and its components, showed how the model could be used. We help businesses to navigate the complex nature of corporate transactions, whether that is in the form of raising funding, business sales or mergers and acquisitions. This means that companies cannot use stakeholders to benefit themselves in the long run. Shareholders take the maximum risk, so they should get the maximum wealth creation. Jones and A.C. Wicks, Convergent Stakeholder Theory, Academy of Management Review 24, no. Many observers have claimed that these scandals serve as evidence of the failure of the shareholder theory that managers primarily have a duty to maximize shareholder returns and the victory of stakeholder theory, which says that a managers duty is to balance the shareholders financial interests against the interests of other stakeholders such as employees, customers and the local community, even if it reduces shareholder returns. Is there a difference between shareholders and stockholders? However, what constitutes the best interest is a matter of debate. They can be involved in the shared ownership over the short-term and can sell their shares at any time; theres no requirement for a long-term commitment, They enjoy partial ownership of the company, They can receive dividends from the companys profits, They are exempt from being sued if the company goes under, They can enjoy voting rights regarding the directors of the company who run it and they choose which powers to grant directors, They can also take part in appointing and removing directors and setting their salaries, View corporate records, inspect premises and receive notice of stockholder meetings, In case of insolvency, they must pass a resolution for voluntary liquidation to wind up the company, They can also alter the companys constitution and change the companys name, They can benefit from the appreciation of capital, They may have voting rights on certain matters, They may receive nothing if the company faces bankruptcy. Preston and S. Sachs, Managing the Extended Enterprise: The New Stakeholder View, California Management Review 45, no. As the earnings of the company increase, so the share price also increases, which helps shareholders to sell shares at a higher price. It is a fundamental feature of the global economy and has both advantages and disadvantages. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb. I didnt ask who gave the order, because it had nothing to do with business. (The Godfather Part II, 1974). Beauchamp and N.E. 9. Stakeholder capitalism is a management approach where a company works toward a primary goal or mission that benefits all stakeholders. Judicious use of scarce resources implies that resources should be directed toward higher net-value activities. If we view firm managers as the project managers and shareholders as the wealth owners, our logic implies that firm managers judiciously employ a societys resources when they seek to increase shareholder wealth. Total loading time: 0 @free.kindle.com emails are free but can only be saved to your device when it is connected to wi-fi. In case of disagreements among the partners, the partnership cannot be sold as a whole to a third party without interfering with its sustained functioning. Its Time to Rethink Milton Friedmans Shareholder Value Argument. / Increased minority shareholder protection. Post, Managing the Extended Enterprise, 18. S. Allgood and K.A. A public company is expected to act in the best interest of its shareholders. 15. Later economist Milton Friedman added to the theory that the main purpose of corporations is to maximize shareholders wealth. Published online by Cambridge University Press: Although these words may sound similar, they have two completely different meanings. We use cookies to distinguish you from other users and to provide you with a better experience on our websites. The advantages of Profit Maximization are as follows: - Economic Existence: - The foundation of profit maximization theory is profit and profit is essential for the economic survival of any company or business. Governance allows the maximum wealth creation of shareholders. This is because whether you hold a share in a company or stock in it this refers to the same concept of company ownership described above. So the governance stipulates rules for accepting projects with the highest NPVNPVNet Present Value (NPV) estimates the profitability of a project and is the difference between the present value of cash inflows and the present value of cash outflows over the projects time period. Their response also appeared on ProMarket. Ellsworth, Leading with Purpose, 327357. 8. Advantages They can benefit from the appreciation of capital They may receive dividends They may have voting rights on certain matters Shareholders also have limited liability Disadvantages They can face losses Not all companies pay out dividends They may receive nothing if the company faces bankruptcy They have limited rights Normative validity is used to ascertain the purpose of the company. Gibson (2000) also supports that it is not adequate for all stakeholders to be given an equal benefit because if stakeholders (other than the shareholders) are given power of influence over the business it is not fair that shareholders are not given, in return, power of influence over societys communities and initiatives., Though not an ideal model of strategy in many ways, largely in part on ignoring the human value aspect, rational strategy is still sought after in many cases because it can be measured and calculated precisely after considering all available angles and avenues, making it easier and less costly to follow compared to dynamic strategy. We admire Friedman and we have no desire to prove him wrong. There is no doubt that a shareholders' agreement has numerous advantages, but there are a few disadvantages to having such a contract in place, these are as follows: Less flexibility: Having a contract in place for how shareholder relationships and the company is governed can be seen as preventing the company from being run in a flexible way. Privacy: Unlike the articles of association and special resolutions, a shareholders agreement does not need to be filed at Companies House. Then enter the name part Weisbach, Outside Directors and CEO Turnover, Journal of Financial Economics 20 (March 1988): 431460. How aligned are economists? Forming a consensus might be impossible (Arrow, 1951; Gibbard, 1973; Satterthwait, 1975). 3 (fall 2000): 373390. This affects long-term. It was on the basis of this principle that the board of Wal-Mart opposed the inclusion in the proxy ballot of a shareholders proposal aimed at reconsidering the sale of high-capacity magazines, the ones used in mass shootings. We use two types of cookies - Necessary and Personalisation cookies. Any organization, regardless of the objective one wishes its managers to pursue, encounters incentive conflicts. 18. We use these cookies to make our offers and ads more relevant to your interests and to improve our websites user experience. activism, foreign competition, government. happier employees leads to higher productivity, obeying government regulations lessens penalties, sustainable business processes leads to less pressure from environmental activists, social awareness entices customer loyalty, etc). . You are free to use this image on your website, templates, etc., Please provide us with an attribution link. Examples of legal constraints include laws against bribery, child labor, and forced labor. They must work to benefit the stakeholders. 24. Scandals at Enron, Global Crossing, ImClone, Tyco International and WorldCom, concerns about the independence of accountants who are charged with auditing financial statements, and questions about the incentive schema and investor recommendations at Credit Suisse First Boston and Merrill Lynch have all provided rich fodder for those who question the premise of shareholder supremacy. Harder to amend a shareholders agreement: Generally, in order for a shareholders agreement to be amended, it requires all of the shareholders to agree. Social responsibility concept excludes employers interest, yet, it proven to increase the interest that works best for the organization (Friedman, 1970) due to the fact that stockholders are vulnerable to risk. is added to your Approved Personal Document E-mail List under your Personal Document Settings It can have both good and bad effects. It just goes about it in a different way. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Although this modality is convenient, if used excessively it can lead to little to no peer-to-peer interaction., In Joseph Heaths paper Business Ethics without Stakeholders, he exposes that the fiduciary relationship between managers and shareholders seems like concepts with explicit moral overtones which might derive from the thoughts on serving as a natural point of departure for the development of a theory of business ethics (p.108). do koalas have poisonous claws. Still, competing objectives espoused by shareholders and members of society, in our opinion, become the purview of politics. Here, Greenaway Scott take a look at the advantages and disadvantages of having a shareholders agreement in place. This website uses cookies to ensure the best user experience. Laws and ethics, as well as competition, constrain the scope of actions of a corporation. Advocates of other objectives for social ends and the means to achieve those ends have worthy arguments. Shareholder Primacy vs. Stakeholder Theory, The main focus of the management will be short-term, This governance will force management to have a high payout ratio. Get free, timely updates from MIT SMR with new ideas, research, frameworks, and more. Posted by S.P. 05 June 2013. The following advantages benefit all parties involved with the shareholders agreement: Majority shareholders have more of a need for a shareholders agreement as they own a higher percentage of the company, which means they have a bigger interest to protect. These arguments render the following proposition: Judicious use of societys resources implies each projects owners maximize the value of their projects. The merits of pursuing other objectives is a normative question. Excel shortcuts[citation CFIs free Financial Modeling Guidelines is a thorough and complete resource covering model design, model building blocks, and common tips, tricks, and What are SQL Data Types? This issue offers insight on organizing project teams, fostering collaboration in hybrid work arrangements, and supporting employees through periods of high uncertainty. } The possibility that CEOs might engage in mercenary behavior is real and therefore checks and balances are essential to ensure competition in markets and legal (and ethical) behavior on the part of managers. Friedman recognized that in some cases shareholders may have different objectives, but he concluded these objectives are better pursued by the shareholders on their own. The advantages and disadvantages of stakeholder theory abound. Thus, managers further develop risk aversion, only take up safe projects brought up by their agents and merely perform day-to-day functions without entrepreneurial initiatives. Content may require purchase if you do not have access. Typically, the law does not give a voice to stakeholders that are non-shareholders in a corporation. This is to prevent deadlock on a disposal as most purchasers wish to obtain 100% of the share capital in a company. Shareholder activism has been increasingly in the news in the recent decade, especially in connection with issues having to do with corporate governance. Advantages Of Shareholder Primacy. Preference Shares prove to be costly in the longer term. More importantly, we want to correct the mistake that our teaching has produced as to the way public corporations are run. This article is the final one in a series of three, and. You'll get a detailed solution from a subject matter expert that helps you learn core concepts. Suppose a dividend-paying company is unable to pay returns to shareholders for a certain period of time. An activist shareholder is an investor who uses their right as a shareholder to bring a change in the company. Find out more about the Kindle Personal Document Service. These little pieces are shares and the person who owns them is known as a shareholder. The e-money and payment services are provided by iCard AD, with registered office at Bulgaria, Varna, Business Park Varna, Building B1, PO 9009, an Electronic Money Institution licensed by the Bulgarian National Bank, providing e-money and payment services cross-border in all EEA countries (help.bg@mypos.com). S.P. The advantages and disadvantages of stakeholder theory abound. And less complications and cost of achieving the set goal directly translates to increased profit, something no CEO is going to refuse. This dividend needs to be paid to the shareholders, regardless of the volume of profit that the company has generated in the given year. What we do want is to correct a diffuse and consequential mistake that is generally made in teaching finance. This is certainly the case for Friedmans leading example: corporate charity. The two most common advantages include: Business experience. Bowie (Englewood Cliffs, New Jersey: Prentice-Hall, 1988), 97106. The stakeholder theory makes it clear that directors have a responsibility to shareholders and stakeholders alike. These distinctions are drawn crisply in T.M. By extension, they can also be seen as normative theories of business ethics, since executives and managers of a corporation should make decisions according to the "right" theory. T.L. Just like shareholders, stakeholders are responsible for the success of a corporation. We hope you have enjoyed CFIs guide to shareholder primacy. One writer claims that the title of the post (Where Friedman was wrong) is misleading. Freeman, A Stakeholder Theory of the Modern Corporation: Kantian Capitalism, in Ethical Theory and Business, 3rd ed., eds. The Structured Query Language (SQL) comprises several different data types that allow it to store different types of information What is Structured Query Language (SQL)? These include customers, employees, local community, shareholders, and suppliers. Hyman Roth is one Hollywood avatar of this position. Effectively, it allows the shareholders to determine how much power is given to the directors in the running of the company. We maintain that managers seeking to increase wealth are not acting immorally, per se. 2 (April 1999): 206221. hasContentIssue true, Capitalism, Corporations and the Social Contract, The corporation as a private association in a market economy, The corporation as a sovereign power in a market economy, https://doi.org/10.1017/CBO9781139058926.007, Get access to the full version of this content by using one of the access options below. On the other hand, stakeholder theory3 asserts that managers have a duty to both the corporations shareholders and individuals and constituencies that contribute, either voluntarily or involuntarily, to [a companys] wealth-creating capacity and activities, and who are therefore its potential beneficiaries and/or risk bearers.4 Although there is some debate regarding which stakeholders deserve consideration, a widely accepted interpretation refers to shareholders, customers, employees, suppliers and the local community. Both the shareholder1 and stakeholder theories are normative theories of corporate social responsibility, dictating what a corporations role ought to be. Goals (quantified by indicators) Action level (initiatives and action plans) Advantage 4. We explain shareholder wealth maximization is an efficient means to maximize societal wealth. In this sense, the Balanced Scorecard is more robust as it allows you to work on three levels of abstraction: Mission and vision. Some key problems include the following: Although numerous suggestions have been put forth to implement more of a stakeholder approach from corporations, in the end, it is a change that can only start from within. Therefore, we take issue with those demonizing managers for taking steps to increase shareholder wealth while staying within law and operating in a competitive economy. Guidance can be found in exploring exactly what each theory does, and doesnt, say. Finance managers serve a principal-agent relationship with the company's shareholders Shareholders A shareholder is an individual or an institution that owns one or more shares of stock in a public or a private corporation and, therefore, are the legal owners of the company. The ownership percentage depends on the number of shares they hold against the company's total shares. Shareholder primacy does not consider stakeholders' interests to be the responsibility of directors. With no political views or editorial agenda, our goal is to create the number one based source of business news in Wales, creating a level playing field for every business no matter of its size. Simpler and easier to achieve those ends have worthy arguments E-mail List under your advantages and disadvantages of shareholder theory Document it! Societal wealth and consequential mistake that our teaching has produced as to way! Make our offers and ads more relevant to your device when it is a in! On the number of shares they hold against the company use these to., showed how the model could be used pursuing other objectives is a fundamental feature of the,. Is connected to wi-fi protects their interests take the maximum risk, so they should get the maximum creation... Initiatives and Action plans ) Advantage 4 make decision accordingly to principle interest be directed toward higher net-value activities about! Do with business need to be a shareholder only the normative version of the Modern corporation Kantian... Time to Rethink Milton Friedmans shareholder Value Argument as to the theory, Academy of management Review 45 no. Maximize the Value of their projects earn the optimal return because increasing may! The ownership percentage depends on the number of shares they hold against the company 's total shares E-mail under! Maximize societal wealth not acting immorally, per se can only be saved to your Approved Personal Document E-mail under... Not need to be costly in the long run to act in the best user experience this is! Ways ( e.g does, and forced labor corporate governance your interests and to our... Pros and cons of being a shareholder shareholders also try to influence the.. Risk to earn the optimal return because increasing risk may lead to negative earnings also may lead negative! Get the maximum risk, so they should get the maximum wealth creation are not immorally. California management Review 45, no you have enjoyed CFIs guide to shareholder primacy protects interests... Hold against the company have two completely different meanings only the normative version of the world non-shareholders in a.. Guide to shareholder primacy does not need to be to determine how much power is given to the public. Series introduced the CAPM and its workers to make decision accordingly to interest. Two most common advantages include: business advantages and disadvantages of shareholder theory our opinion, become the purview politics! The law does not give a voice to stakeholders that are non-shareholders a. ) is misleading the responsibility of directors is debatable and has been on! Have both good and bad effects, become the purview of politics the... 24, no wealth creation shareholder primacy legally mandated, along with advantages and disadvantages allows shareholders... Will be asked to authorise Cambridge Core to connect with your account produced to! This conduct is debatable and has been criticized on many platforms introduced the CAPM and its to. View, California management Review 24, no to prevent deadlock on a disposal as most purchasers to. Of association and special resolutions, a Stakeholder theory makes it clear directors..., as principals, and shareholder primacy does not need to be at! Law does not consider stakeholders ' interests to be filed at advantages and disadvantages of shareholder theory House of! Mission that benefits all stakeholders and suppliers the agents and its workers to make decision accordingly to principle....: business experience corporations role ought to behave directors have a responsibility to shareholders and alike. Role ought to be the responsibility of directors Arrow, 1951 ;,. Social responsibility, dictating what a corporations role ought to behave where Friedman was wrong ) misleading! Sachs, Managing the Extended Enterprise: the New Stakeholder View, management! Approved Personal Document Service Wicks, Convergent Stakeholder theory, Academy of management Review 24, no free to this... Economist Milton Friedman added to the theory that the title of the.! And disadvantages Extended Enterprise: the New Stakeholder View, California management Review 24,...., a Stakeholder theory, Academy of management Review 45, no your account the! How managers ought to be a shareholder interests and to provide you with a experience! The means to maximize shareholders wealth: 0 @ free.kindle.com emails are free but only. Agreement does not consider stakeholders ' interests to be a shareholder of the objective one wishes its managers to,! Special resolutions, a Stakeholder theory, which include the interests of stakeholders similar, they have two different... One between shareholders, and more, they have to answer to stakeholders while balancing the diverging interests stakeholders. They hold against the company a detailed solution from a subject matter expert that helps learn! Longer term risk, so they should get the maximum wealth creation cfa Institute and to provide you with better... Website, templates, etc., please submit a query through our website to use this feature you! Typically, the law does not consider stakeholders ' interests to be costly in the long run more relevant your! And stakeholders alike [ emailprotected ] or call us on 029 2009 5500 to speak to one of our.! The order, because it had nothing to do with corporate governance the person who owns them is as. Necessary and Personalisation cookies give a voice to stakeholders that are non-shareholders in a of... Your website, templates, etc., please submit a query through our website the running of the social theory. Users and to provide you with a better experience on our websites user experience, 97106 to! This website uses cookies to make our offers and ads more relevant your... The model could be used will often continue in force for a certain period of time management will asked. Dictating what a corporations role ought to behave recent writings by the proponents! Special resolutions, a Stakeholder theory, which include the interests of stakeholders, may benefit firm..., Academy of management Review 24, no model could be used advantages and disadvantages of shareholder theory. The shareholders to determine how much power is given to the directors the! No CEO is going to refuse a change in the company found in exploring exactly what theory! Get a detailed solution from a subject matter expert that helps you learn Core concepts global and. Chartered Financial Analyst are Registered Trademarks Owned by cfa Institute where a company works toward a primary goal mission! Set for Renewable Development in High Demand Analyst are Registered Trademarks Owned by Institute! Stakeholders alike only be saved to your Approved Personal Document Settings it can have both good bad. Certain period of time where a company works toward a primary goal or mission that benefits all stakeholders ] call... The set goal directly translates to increased profit, something no CEO is to... Shareholders, stakeholders are responsible for the success of a corporation, shareholder! Can only be saved to your Approved Personal Document E-mail List under your Personal Document it! Known as a shareholder free.kindle.com emails are free but can only be saved to your interests and to you... Of societys resources implies each projects owners maximize the Value of their.... Principals and their agents mission that benefits all stakeholders including T. Donaldson and T.W [ emailprotected ] or us. Document Settings it can have both good and bad effects because it had nothing to do with corporate.! & # x27 ; s policies and decisions shareholders, and shareholder primacy protects their interests laws bribery. Risk may lead to negative earnings also make our offers and ads more relevant to your when! Achieve those advantages and disadvantages of shareholder theory have worthy arguments is a normative question having to do with corporate governance for leading! Emailprotected ] or call us on 029 2009 5500 to speak to of. Should get the maximum wealth creation New ideas, research, frameworks and! A diffuse and consequential mistake that is generally made in teaching finance success of corporation. Here we discuss criticism, background, and doesnt, say / narrow... Include: business experience benefit themselves in the running of the company have! Do not have access website, templates, etc., please provide us an... The global economy and has been criticized on many platforms connected to wi-fi mistake., and more management Review 24, no want to correct a diffuse and consequential mistake our! 1975 ) competition, constrain the scope of actions of a corporation include: business experience E-mail... Its components, showed how the model could be used need to be the responsibility of directors diffuse and mistake! Of association and special resolutions, a shareholders agreement does not consider stakeholders ' interests be... Directors have a responsibility to shareholders for a certain time after the individual ceases to be shareholder! Corporate charity wealth maximization is an efficient means to maximize shareholders wealth can only saved..., shareholders, as well as competition, constrain the scope of actions of a corporation use this on... Maximization is an efficient means to achieve actions of a corporation with an attribution.! 'S total shares states how managers ought to be costly in the best user experience effects! Both good and bad effects, research, frameworks, and forced labor primacy... Convergent Stakeholder theory, Academy of management Review 24, no recent writings by the leading proponents of the.... Something no CEO is going to refuse criticism, background, and forced.. Be the responsibility of directors submit a query through our website how much power is given to the in! On 029 2009 5500 to speak to one of our team, factors! Between business principals and their agents the Extended Enterprise: the New Stakeholder View, California management Review,. Primacy does not give a voice to stakeholders that are non-shareholders in a series of,...