Stakeholderism

Previous chapters have highlighted that some directors might opt for choices maximising utility through cost–benefit analysis (utilitarian inclination), whereas other directors might adhere to moral principles (deontological inclination). Despite the apparent moral superiority of deontological reasoning due to its emphasis on universal moral norms, utilitarianism also may hold deep moral significance, while it is rooted in the moral duty to maximise well-being or happiness for the largest possible group. This book uses the concept of ‘stakeholderism’ to describe the commitment of directors to maximising the welfare of all stakeholders. Stakeholderism is seen as a moral obligation to treat all stakeholders equitably and balance their interests, costs, and benefits.