Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/336453 
Year of Publication: 
2025
Citation: 
[Journal:] Journal of Economic Issues [ISSN:] 1946-326X [Volume:] 59 [Issue:] 4 [Publisher:] Taylor & Francis [Place:] London [Year:] 2025 [Pages:] 1001-1015
Publisher: 
Taylor & Francis, London
Abstract: 
Stakeholder theory is sometimes criticized by radical scholars for being pro-business and pro-capitalistic. However, stakeholder theorists recognize their disagreements with neoclassical economics and reject the notion of shareholder primacy. I argue that the rejection of shareholder primacy introduces a radical dimension to stakeholder theory, which can be further developed by drawing on the radical institutionalist literature. This literature acknowledges that private ownership can impede the social provisioning process by acting as a ceremonial drag. By adopting a radical institutionalist view of stakeholder theory, I suggest that rejecting shareholder primacy implies eliminating ceremonial elements that hinder the social provisioning process. Consequently, I see stakeholder management as a possible means of replacing these elements with discretionary community control that promotes inclusion, empowerment, and engagement of diverse stakeholders.
Subjects: 
radical institutionalism
shareholder primacy
stakeholder management
stakeholder theory
JEL: 
B52
D21
G30
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article
Document Version: 
Published Version

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