ABSTRACT
Stakeholder management is essential for governance of the corporation in cosmopolitan business ethics. This chapter discusses the definition of justice and fairness in relation to stakeholder management from the perspective of cosmopolitan business ethics. Stakeholder management breaks here with neoclassical economic theory, which follows Milton Friedman's idea that corporate social responsibility (CSR) can be reduced to a responsibility to obtain financial gain for the shareholders. Traditional perceptions of stakeholder theory and of the stakeholders themselves tend to put business at the center of the stakeholder chart. Companies must not only use their power to make money, but they must also be politically and socially responsible in the community. Stakeholder management manifests a departure from classical theories of management. The company can no longer be controlled by Frederick Taylor's principles of scientific management and production-oriented theories of perfect competition, such as those proposed by economist Michael Porter.
