Volume 10, 1999
Proceedings of the Tenth Annual Meeting
Compensation in the Financial Services Industry
A Modest Narrative on Conflicting Stakeholder Interests
This paper uses a true example to explore how one firm adjudicated between conflicting stakeholder demands. Four normative theories of stakeholder management are examined to determine if the firm acted morally. In prescribing approaches for stakeholder adjudication, three of the four theories suggest the use of shared norms and values. Unpacking the example in these terms leads us to the counter-intuitive conclusion that breaking an implicit contract with employees in order to meet shareholder expectations is in fact morally acceptable within the culture of the financial services industry.