Shareholder and stakeholder paradox at bp introduction since renowned economist friedman (1970) expressed his strong convictions on the need for social responsibility in business, there has been much development in the theory and practical application of social responsible initiatives (mcwilliams, seigel & wright, 2006.
Shareholder and stakeholder paradox at bpdocx refinery and consumption raises ethical concerns due.
Multi-fiduciary stakeholder theory claims that managers are fiduciaries to a number of stakeholder groups this would require that managers concomitantly put the needs of shareholders above other stakeholders and at the same time place other stakeholder interests above shareholder interests, which is logically impossible. The following is a primer on terms, followed by a brief discussion of the stakeholder paradox 1 illegal insider trading occurs when someone big inside a publicly traded company buys or sells his/her shares in the company’s stock, based on “material non-public information” “big” means anyone who is a large shareholder (10% of the. View notes - shareholder and stakeholder paradox at bpdocx from business s 340 at devry university, chicago shareholder and stakeholder paradox at bp introduction since renowned economist friedman.
Activist role on stakeholder issues reflects the same fiduciary obligations to enhance value that have led funds to be concerned with corporate governance itself.
Solving the stakeholder paradox goodpaster suggests a solution to the paradox which is to accept that managers have duties to all stakeholders, but a fiduciary duty only to shareholders ( goodpaster, p 67 and 69 .
This essay first reviews the ideas of freidman (1970), then the development of alternative theory is outlined, and the shareholder and stakeholder paradox is defined the motives and actions of csr policy at the international oil company british petroleum (bp) are analysed and then related to the shareholder and stakeholder paradox.