Building Stakeholder Theory with a Decision Modeling Methodology
Abstract
This article focuses stakeholder theory on that critical juncture where stakeholder relationships and corporate policy decisions converge. A case study methodology is described that permits detailed analyses of multiple stakeholders’ objectives; it is suitable for studies of major corporate strategic decisions that are complex, controversial, involve multiple stakeholders, and require strategic trade-offs. The methodology is applied here to the dramatic decision by a Pacific Northwest forest company to phase out traditional clear-cut harvesting methods of old-growth forests. The study’s findings point to new research questions and have theoretical implications for a finer grained conceptualization of stakeholder groups, stakeholder objectives, and stakeholder issues.