03-01-2020 Stakeholder Management, Cooperatives, and Selfish-Individualism 1131
Munich Personal RePEc Archive Stakeholder Management, Cooperatives, and Selfish-Individualism Ferri, Giovanni and Leogrande, Angelo LUMSA-University, LUM University 15 January 2021 Online at https://mpra.ub.uni-muenchen.de/106244/ MPRA Paper No. 106244, posted 25 Feb 2021 07:59 UTC Stakeholder Management, Cooperatives, and Selfish-Individualism Giovanni Ferri1, and Angelo Leogrande2 Abstract We analyze stakeholder management (STM) relative to cooperation and individualism within the fourth industrial revolution (FIR). STM is a recent corporate governance tool boosting cooperation and allowing representativeness of individualistic behaviors even in dialectical environments. Though forerunning it, cooperatives massively use STM now, while the FIR demands cooperation also at non-cooperative enterprises. We reach two main conclusions. Deeper orientation towards STM helps solve the shareholder management (SHM) crisis. Moreover, exemplifying the benefits of STM towards social and environmental goals, cooperatives can inspire also other companies aiming to reduce the negative externalities of SHM and profit from cooperation within the FIR. JEL Codes: L21, L31, L33, M14, P12, P13. Keywords: Stakeholder Management, Cooperative Banks, Shareholder value, Individualism, Market Society. 1. Introduction Two overarching drivers are nowadays inducing change in the economy and society. First, the wave of intense technological innovation – labeled Fourth Industrial Revolution (FIR) – is deeply reshaping production and consumption, typically requiring more cooperation. Second, major socio-economic and environmental crises are growingly questioning the role of shareholder management (SHM) and its short-term profit maximization goal, evoking the advantage of more stakeholders’ involvement in corporations, e.g. through stakeholder management (STM). Our paper lies at the junction between these two drivers of socio-economic change.
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