Business Ethics Quarterly 23 (3):349-379 (2013)

Abstract
Employing utilitarian criteria, Jones and Felps, in “Shareholder Wealth Maximization and Social Welfare: A Utilitarian Critique”, examined the sequential logic leading from shareholder wealth maximization to maximal social welfare and uncovered several serious empirical and conceptual shortcomings. After rendering shareholder wealth maximization seriously compromised as an objective for corporate operations, they provided a set of criteria regarding what a replacement corporate objective would look like, but do not offer a specific alternative. In this article, we draw on neo-utilitarian thought to advance a refined version of normative stakeholder theory that we believe addresses a major remaining criticism of extant versions, their lack of specificity. More particularly, we provide a single-valued objective function for the corporation—stakeholder happiness enhancement—that would allow managers to make principled choices between/among policy options when stakeholder interests conflict.
Keywords Applied Philosophy  Business and Professional Ethics  Social Science
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ISBN(s) 1052-150X
DOI beq201323325
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References found in this work BETA

Reasons and Persons.Derek Parfit - 1984 - Oxford University Press.
Nicomachean Ethics.H. Aristotle & Rackham - 1968 - Harvard University Press.
A Theory of Justice: Revised Edition.John Rawls - 1999 - Harvard University Press.
Utilitarianism.J. S. Mill - 1861 - Oxford University Press UK.

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Citations of this work BETA

Harmful Stakeholder Strategies.Jeffrey S. Harrison & Andrew C. Wicks - 2021 - Journal of Business Ethics 169 (3):405-419.

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