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Clarkson introduced the principles of stakeholder management. These principles originated from four conferences that were hosted by the Centre of Corporate Social Performance and Ethics in the faculty of Management between 1993 and 1998. This centre is presently known as the Clarkson Centre for Business Ethics and Board Effectiveness.

These conferences were mainly organized for the management students. The management students gathered together in these conferences and they share their ideas on stakeholder theory. The stakeholder theory was regarded as an important study at that time which includes the examination of the relationships and responsibilities of various organizations to their employs, customers, suppliers, society and the environment. The Clarkson Principle of Stakeholder management provided with an early awareness about the corporate governance. These concerns have been widely discussed in connection with business scandals of 2001-2003.

The various principle of Clarkson includes:

1. The managers should acknowledge and properly monitor all the concerns of stakeholder. They should take interest in the actions and operations and decision makings.
2. The managers should also listen to the stakeholders regarding their respective concerns and contributions and also, the risks that may be involved during the process.
3. The managers should adopt various processes and modes of behavior that are sensitive to the concerns of the stakeholders.
4. The manager should be capable of recognizing the interdependence of efforts and rewards for the stakeholders and also they should be able to achieve fair distribution of profit.
5. The manager should be capable of working with different people from both public and private sector. It leads to ensure that the risks and harms arising from corporate activities are minimized.
6. The manager should avoid using the activities that may affect the human rights related to the stakeholders.

The managers should conflict their potentials as the corporate stakeholders, their moral and legal responsibilities for the sake of the stakeholders.

Written by: Matt

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