Abstract
This chapter sketches the tenets of the old narrative of businesses (a focus on profits) more precisely, and highlights some of the partial suggestions for reform. Then, the authors turn to a set of principles in what has come to be called “stakeholder theory,” and suggest that these stakeholder principles are more useful in understanding how businesses need to operate in the twenty-first century. Finally, the paper also outlines some principles of “Responsible Capitalism.”
Originally published in: Re-Imagining Capitalism, 135–144 © Oxford University Press, 2016
Reprint by Springer, https://doi.org/10.1093/acprof:oso/9780198785453.003.0010
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Similar content being viewed by others
References
Bebchuk, L. 2006. Pay without Performance. Cambridge, MA: Harvard University Press.
Edmans, A., L. Li, and C. Zhang. 2014. Employee Satisfaction, Labor Market Flexibility, and Stock Returns around the World, w20300. Cambridge, MA: National Bureau of Economic Research.
Follett, M.P. 2011. Business as an Integrative Unity. In Sociology of Organizations: Structures and Relationships, ed. M.E. Godwyn and J.H. Gittell, 7–13. Thousand Oaks: Sage.
Freeman, R.E., K. Martin, and B. Parmar. 2006. Ethics and Capitalism. In The Accountable Corporation, Vol. 2: Business Ethics, ed. M. Epstein and K. Hanson, 193–208. Westport: Praeger.
———. 2007. Stakeholder Capitalism. Journal of Business Ethics 74 (4): 303–314.
Freeman, R.E., J. Harrison, A. Wicks, B. Parmar, and S. de Colle. 2010. Stakeholder Theory: The State of the Art. Cambridge: Cambridge University Press.
Friedman, M. 1970. The Social Responsibility of Business Is to Increase Its Profits. New York Times Magazine 13: 32–33.
Goodstein, J.D., and A.C. Wicks. 2007. Corporate and Stakeholder Responsibility: Making Business Ethics a Two-Way Conversation. Business Ethics Quarterly 17 (3): 375–398.
Jameson, F. 1991. Postmodernism, or, the Cultural Logic of Late Capitalism. Durham: Duke University Press.
Jensen, M.C., and W.H. Meckling. 1976. Theory of the Firm: Managerial Behavior, Agency Costs and Ownership Structure. Journal of Financial Economics 3 (4): 305–360.
Keynes, J.M. 2006. General Theory of Employment, Interest and Money. New Delhi: Atlantic Publishers and Distributors.
Mackey, J., and R. Sisodia. 2014. Conscious Capitalism. Cambridge, MA: Harvard University Press.
Parmar, B.L., R.E. Freeman, J.S. Harrison, A.C. Wicks, L. Purnell, and S. De Colle. 2010. Stakeholder Theory: The State of the Art. Academy of Management Annals 4 (1): 403–445.
Schumpeter, J.A. 2013. Capitalism, Socialism and Democracy. New York: Routledge.
Sisodia, R., D. Wolfe, and J. Sheth. 2014. Firms of Endearment. 2nd ed. Upper Saddle River: Pearson Press.
Venkataraman, S. 2002. Stakeholder Value Equilibration and the Entrepreneurial Process. In Ethics and Entrepreneurship, ed. R.E. Freeman and S. Venkataraman, 45–57. Charlottesville: Philosophy Documentation Center.
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2023 Springer Nature Switzerland AG
About this chapter
Cite this chapter
Freeman, R.E., Parmar, B.L., Martin, K.E. (2023). Responsible Capitalism: Business for the Twenty-First Century. In: Dmytriyev, S.D., Freeman, R.E. (eds) R. Edward Freeman’s Selected Works on Stakeholder Theory and Business Ethics. Issues in Business Ethics(), vol 53. Springer, Cham. https://doi.org/10.1007/978-3-031-04564-6_54
Download citation
DOI: https://doi.org/10.1007/978-3-031-04564-6_54
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-031-04563-9
Online ISBN: 978-3-031-04564-6
eBook Packages: Religion and PhilosophyPhilosophy and Religion (R0)