I believe that the stakeholder theory is superior to and argumentatively stronger than the Shareholder theory. This definite statement is very straight to the point but atypical for a standard persuasive essay (Weston, 2018). However, such a rhetorical move is necessary for the audience to understand the further narrative flow in this paper. It is worth starting by mentioning the consensus that most people believe that if they contribute to something by putting their skills and putting their resources and time into it, then they are entitled to some payback or reward (Weston, 2018). This socio-economic principle, or public opinion, is the fundamental motivational driver for stakeholders to make efforts in business entities. All persons aspiring to professional self-fulfillment want to use their learned skills in a professional field of their interest in order to receive the desired profits.
Stakeholder Theory, Modus Ponens, and Modus Tollens
Let one apply deductive reasoning to this issue of different perceptions of the relationship between corporations and society. If an individual or group of persons receives little or no feedback while interacting with the employers and their organization, they become unmotivated, unhappy, and quit. Nowadays, the most disgruntled employees are in firms without ethical corporate behavior, incentive payments for their employees, and bonus programs for their customers. Therefore, ending this modus ponens, one can conclude that shareholder theory is not only ineffective but also destructive to companies in the current global business climate (Weston, 2018). The very fact that the moral and ethical workplace paradigm has already won in the business sector shows that the stakeholder theory is relevant and valid.
This deductive argument can also be viewed from an opposing perspective. If the ideas of stakeholder theory were false, the topics of inclusion, equality, fairness, and encouragement would not be popular among modern managers. However, these concepts have dominated the corporate culture for at least the last decade. This modus tollens shows the care and encouragement by the employer of all groups that contribute to the functioning and enrichment of the company is a practical approach to management (Weston, 2018). Allocation of profits only in the hands of already rich though competent people is now detrimental to the firm’s performance.
Stakeholder Theory, Chain of Deductive Arguments and Basic Ideas
There are more arguments for why the discussed stakeholder theoretical framework works better than its predecessor. One of them is the logical chain of deductive arguments or a list of basic ideas, which will be presented below (Weston, 2018). The shareholder theory favors a small group of people, while the stakeholder one does the opposite. The latter gives the firm’s economic agents access to a more significant number of societal groups. It means a large target population for products, services, and advertising, resulting in more considerable sums of incoming money. As one can see, the support of all provides entrepreneurs with enrichment for themselves.
Stakeholder Theory and Reductio Ad Absurdum
Moreover, the shareholder theory is argumentatively weaker than its discussed antipode because it makes companies disrupt the initially favored economic climate in which they operate. As noted above, it promotes the allocation of profits in the hands of one group of business actors, which limits the financial opportunities of all others. It eventually leads to the latter’s inability, including employees and consumers, to work effectively and acquire the company’s products and services, which impoverishes the company. As one can see, this doctrine of lack of social responsibility leads to the failure of economic mechanisms to function, which is contradictory (Weston, 2018). Simply put, shareholder theory undermines itself, and it makes this model absurd.
Exploring the Issue of Stakeholder Theory through Global Culture
Reading this argumentative paper, one might wonder why the stakeholder theory emerged and became popular. Exploration of this issue of economics allowed one to identify two logical explanations; the first is socio-political, and the second is economical (Weston, 2018). All aspects of the modern world, including business, are fully or almost wholly globalized and diversified. Diverse environments cultivate ethical, and societal principles such as equality, equity, and inclusion. One can say that the stakeholder theory is a natural and more developed version of the previous cooperative doctrine, which was the shareholder one.
Stakeholder Theory as a Long-lasting Positive Trend in Corporate Culture
Stakeholder theory is one of the big positive trends in corporate culture and business as a phenomenon of collective human interaction. The dominance of this entrepreneurial paradigm shows that the ethics of employers and business owners have become more humane and selfless. Even their public persona has shifted from the cartoonish industrial rich of the Industrial Revolution to the philosophic philanthropist who uses his resources to build a self-sufficient society. The promotional measures that the current generation of entrepreneurs can now is to implement, follow, and advocate for stakeholder theory and its related ethical principles within their own organizations (Weston, 2018). It is the second message and advice to the audience of this argumentative essay.
References
Weston, A. (2018). A rulebook for arguments (5th ed.). Hackett Publishing Company, Inc.