Abstract

To be a coherent and genuinely alternative conception to the shareholder model, any moral stakeholder theory must meet the following conditions: It must be an ethical theory; It must identify a limited group as stakeholders; The group must be identified on morally relevant grounds; Stakeholder claims must be non-universal; And not held against everyone. A principle for identifying the stakeholder is suggested as a person who has much to lose – financially, socially, or psychologically – by the failure of the firm. The emerging picture contrasts sharply with the conventional conception of the firm.