John Farago wrote:
"My interpretation is that managers/ directors key decision makers must
TAKE INTO ACCOUNT the needs and aspiration of all stakeholders,
reconcile their claims and where necessary balance or negotiate between
conflicting claims. They do not "represent" stakeholders except in so
far as they are (in most developed capitalist economies) appointed by
shareholders and may be removed by shareholders."
My remark that management represents stakeholders is based on the claim
that there is nothing to a company but stakeholders. When management
negociates with a stakeholder about future exchange processes, they must
do so in the interest of (i.e. in order to create as much value as
possible for) other stakeholders. In philosophical terms one would say
that I consider "company" to be a reification: given an existence in
reality while it is only a concept which comes in handily to describe a
number of phenomena (another -notorious- example is "intelligence", a nice
concept but without any proof of existence as yet). In legal terms I would
say that a company without stakeholders(' activity) is dormant.
"I agree about the vast number of processes, but I am very sceptical about
the utility idea of collapsing indicators into three numbers (or even
three per stakeholder)."
I agree it reminds one of the Grand Theory of Everything. But, on the
other hand, why would we "tolerate" activity in a company which does not
in any way contribute to (or facilitates) the creation of stakeholder
value? And/or, shouldn't we somehow be able to manage all other processes?
And if so, doesn't managing always imply some form of metrics (maybe in
the broadest possible sense of this term)?
PS Is this subject still acceptable on this list?
[Host's Note: It's OK with me...]
Affiliated Lecturer, University of Groningen, The Netherlands
Senior Consultant, MSP Associates, Amsterdam, The Netherlands
Guido Thys <email@example.com>
Learning-org -- An Internet Dialog on Learning Organizations For info: <firstname.lastname@example.org> -or- <http://world.std.com/~lo/>