Tourism Stakeholder Theory in practice: instrumental business grounds, fundamental normative demands or a descriptive application?

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Authors

Nicolaides, Angelo

Issue Date

2015

Type

Article

Language

en

Keywords

Normative theory , stakeholders , sustainability , tourism

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Abstract

Stakeholder management refers to how organizations deal with their shareholders as well as all the other stakeholders with whom they have dealings or upon whom their operations impact in some way or another. There are often adverse burdens placed upon organizations by competing stakeholder demands. There are those who support the traditional shareholder view of maximizing profits at all costs and who assert that ‘the business of business is business’ (Friedman, 1970). They also generally posit the opinion that to support society is a governmental task and that business should not be distracted by stakeholders who have not contributed to the business growth. Then there are those who support wider stakeholder inclusivity in the dealings of an organization so as to benefit society (Freeman, 1984).The aim of this research is to promote the notion of stakeholder management by showing how the relationship with non-market stakeholders in for example the tourism sector and how it can be enhanced to the benefit of all. Theoretical conceptual analytical research was undertaken based on the review of relevant peer reviewed literature about stakeholders and tourism in rural areas, and web-based relevant materials. The use of existing literature from a wide range of sources in a multi-disciplinary context, allowed the researcher to obtain an enhanced understanding of why stakeholder consideration and engagement is important for all organizations and the tourism sector. The collected information provided the basis for incorporating why local communities should be considered as important stakeholders of an organization and conceptualizes how stakeholder theory as a normative notion is critical to organizational sustainability.

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Nicolaides, A. (2015). "Tourism Stakeholder Theory in practice: instrumental business grounds, fundamental normative demands or a descriptive application?' [online], African Journal of Hospitality, Tourism and Leisure, 4(2): 1-26. Available from <http://www.ajhtl.com/archive.html>

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African Journal of Hospitality, Tourism and Leisure

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ISSN

2223 814X

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