The strategic importance of the ;;stakeholder approach;; in the service industry

[摘要] In countries with a market economy it is generally agreed that companies should pursue economic profitability to survive and to provide shareholders with maximal value. The view is generally summarized as ;;the shareholder approach;; in the management of businesses. However, not many people would disagree that companies also have certain social responsibilities. Unlike the shareholder approach, ;;the stakeholder approach;; emphasizes responsibility over profitability and sees that company;;s success should be measured by the satisfaction among all stakeholders around itself, not by one stakeholder- shareholders. In this thesis, I examine how the stakeholder approach is beneficial for corporation;;s sustainability and competitiveness in the service industry by analyzing some empirical evidences in leading companies in it; Enterprise Rent-a-Car, Whole Foods, and Trader Joe;;s. In the service industry, companies can;;t help continuing interactions and relationships with all the stakeholders in daily business operations. Without supports from them, companies are hard to succeed. The analysis finds that the stakeholder approach is a legitimate management strategy and helps companies building trust and maintaining a sustainable competitive advantage, even giving better financial return in the long term.

[发布机构] Massachusetts Institute of Technology