Abstract :
The aim of this paper is to identify, review and assess two prominent recent trends in
the literature on stakeholder engagement. Scholars in the first camp are referred to as
Habermasians, owing to their reference and adherence to the work of the German
philosopher most famous for elaborating on the concept of moral discourse. To these
scholars, moral engagement is marked by specific conditions of communication which
ensure that this communication is uncorrupted by power differences and strategic
motivations. Others – those called here Ethical Strategists – argue that the engagement
of stakeholders must be integral to a firm’s strategy if it is to achieve real success. This
camp is characterized by scholars contending that the distinction between strategy and
morality is not only unfortunate, but logically unnecessary. They hold that good strategy
properly understood must encompass what are typically recognized as moral
concerns, because the very purpose of the firm and the capitalist system within which
it operates is, when viewed rightly, the creation of value for all stakeholders. While
recognizing the important contributions made by the Habermasians to the conversation
about stakeholder engagement, it is concluded that, owing to the confluence of
conceptual and practical concerns, the Ethical Strategists’ position is the more
attractive.
