Evolution of stakeholder management approach in business: a literature review

Stakeholder management approach gained ground after R. Edward Freeman popularised the term and concept as a strategic management tool for business. Later, business ethics literature described stakeholder approach from a normative theory perspective and CSR theorists used the concept as a basis to describe a firm's social responsibility. Hence, we review the existing literature in the development of stakeholder management approach as a strategy for business and also as a normative concept. The paper reviews corporate social responsibility (CSR) literature to explore linkages between CSR and stakeholder management approach. CSR literature points to a direct link between stakeholder-oriented thinking and a firm's commitment to CSR programs. Contemporary scholarly work highlights the omnipresence of stakeholder management approach. Stakeholder approach continues to inspire businesses to behave responsibly and contribute towards welfare of communities however, theoretical inadequacy and lack of consensus among business and ethics scholars limit a wider adoption of the concept.