The past and future of stakeholder theory: introducing the TOPPER framework

Abstract

Stakeholder theory has been identified as a potential solution to the challenges firms face regarding increased digitalization. It is a theory in the field of business ethics, which provides firms with clues on what behaviour is ethical. To assess whether stakeholder theory is up for the challenge of digitalization, this chapter offers a comprehensive overview of stakeholder theory. The TOPPER framework is introduced to categorize the research in this field based on their topic and perspective. The topics regard stakeholder importance, stakeholder identification, stakeholder prioritization, and stakeholder theory in practice. Regarding perspectives, the work is categorized into descriptive, instrumental, and normative research. This results in the identification of research gaps, especially regarding descriptive research on stakeholder importance and instrumental research on stakeholder prioritization. Emphasizing the underexplored normative perspective, the article advocates for a normative core spanning diverse topics. Discussing the critique on stakeholder theory brings attention to persisting issues, such as managing for stakeholders without a spokesperson. As firms navigate a digital future, reassessing business ethics is crucial, with stakeholder theory offering a promising solution to novel challenges.