| This article draws on Principles of Stakeholder Management recently published by the Clarkson Centre for Business Ethics. The article discusses the most important principles and the reasoning behind them. First, though, it lays a foundation for the application of these principles by interpreting a massive empirical study that demonstrates strong parallels between stakeholder valuation of firms (measured as overall reputation) and shareholder valuation (stock market returns). This evidence is coupled with conceptual analysis that shows that the most famous pronouncements of Adam Smith and Milton Friedman actually argue for, not against, the stakeholder approach. |