2.5. History of the Stakeholder Theory
In the mid-1980 a stakeholder approach to strategy came up. One focal point
in this movement was the publication of Richard Edward Freeman. He is generally
credited with popularizing the stakeholder concept. The title of the work is – Strategic
Management and only the subtitle is A Stakeholder Approach and came out in 1984.Doing this he indicated that his view of the stakeholder concept was done from the
perspective of the company. He built on the process work of Ian Mitroff, Richard
Mason and James Emshoff. Actually the use of the word stakeholder came from the
pioneering work done at Stanford Research Institute (SRI) in the 1960s. They further
were heavily influenced by several concepts that were developed in the planning
department of the Lockheed Company and these ideas were developed from the
researching done by Igor Ansoff and Robert Steward. Ansoff was around 1960s
working for the SRI in association with Lockheed (Friedman 2006). It is also clear
that business leaders were thinking and expressing the stakeholder concept long
before the early 1960s. Dodd (1932) states that already GEC was identifying four
main groups which whom they had to deal with. Those four groups were defined as
shareholders, employees, customers, and the general public. Further, Preston and
Sapieca (1990) mentioned that Johnson & Johnson identified customers, employees,
managers, and the general public in 1947. The company Sears named „four parties
to any business in the order of their importance“as “customers, employees,
community and stockholders“in the year 1950. Schilling (2000) that the start of
thinking about the stakeholder concept was the work of Follet in 1918. Friedman
(2006) considers
“Here a concern about the corporation, which emerged along with the origins of the corporation as a
legal entity which he, calls the soulless corporation”.
This shows a moral or normative vacuum that has favored ideas of how this could or
should be dealt with. In order so fill this vacuum the stakeholder concept has come
up to handle this demand. By distinguishing in this work between pre- and post-
Freeman (1984) it should be easier to understand why the stakeholders approach
has become so popular during the last twenty years. Generally important to know is
that from the start on the stakeholder approach grew out of management practice.
2.5. History of the Stakeholder Theory
In the mid-1980 a stakeholder approach to strategy came up. One focal point
in this movement was the publication of Richard Edward Freeman. He is generally
credited with popularizing the stakeholder concept. The title of the work is – Strategic
Management and only the subtitle is A Stakeholder Approach and came out in 1984.Doing this he indicated that his view of the stakeholder concept was done from the
perspective of the company. He built on the process work of Ian Mitroff, Richard
Mason and James Emshoff. Actually the use of the word stakeholder came from the
pioneering work done at Stanford Research Institute (SRI) in the 1960s. They further
were heavily influenced by several concepts that were developed in the planning
department of the Lockheed Company and these ideas were developed from the
researching done by Igor Ansoff and Robert Steward. Ansoff was around 1960s
working for the SRI in association with Lockheed (Friedman 2006). It is also clear
that business leaders were thinking and expressing the stakeholder concept long
before the early 1960s. Dodd (1932) states that already GEC was identifying four
main groups which whom they had to deal with. Those four groups were defined as
shareholders, employees, customers, and the general public. Further, Preston and
Sapieca (1990) mentioned that Johnson & Johnson identified customers, employees,
managers, and the general public in 1947. The company Sears named „four parties
to any business in the order of their importance“as “customers, employees,
community and stockholders“in the year 1950. Schilling (2000) that the start of
thinking about the stakeholder concept was the work of Follet in 1918. Friedman
(2006) considers
“Here a concern about the corporation, which emerged along with the origins of the corporation as a
legal entity which he, calls the soulless corporation”.
This shows a moral or normative vacuum that has favored ideas of how this could or
should be dealt with. In order so fill this vacuum the stakeholder concept has come
up to handle this demand. By distinguishing in this work between pre- and post-
Freeman (1984) it should be easier to understand why the stakeholders approach
has become so popular during the last twenty years. Generally important to know is
that from the start on the stakeholder approach grew out of management practice.
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