Contemporary organizations need to satisfy the interests of all of their stakeholders in order to survive. Stakeholders have either tangible or intangible investments on the organization and get some kind of benefit from the profitability of the organization, e.g. employees, customers, suppliers, customer advocates, government bodies. In the stakeholder theory literature different approaches are proposed. According to Schilling (2000) stakeholder theory is a subset of systems theories. Donaldson and Preston (1995) analyse the stakeholder theory along three dimensions: Normative, Descriptive, Instrumental. This study by making an introduction to instrumental approaches aims to draw attention to the importance of stakeholder management within the strategic management context in today’s business organizations. Instrumental approach tries to describe the connections between stakeholder management and reaching the traditional objectives like profitability and growth.
Stakeholder management, systems thinking, strategic management