Leading and Managing Non-Profit Organization: An Annotated Bibliography

Running head: ANOTATED BIBLIOGRAPHY.
Leading and Managing Non-Profit Organization.
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Leading and Managing Non-Profit Organization1
The stakeholder theory was coined by Edward Freeman, which stated that the
stakeholders of a company includes to be in the position right above any other individual
directly or indirectly affecting the company and how the working is done in it. In opposition
to the stakeholder theory, there is another elongated theory of stakeholder coined by Milton
Friedman, an economist. He stated that in the capitalism market, only the stakeholders of a
company are the ones who shall take care of the company and whatever is happening with
other stakeholders in regards to forming the bottom line for the company. As per Friedman’s
view, compelled profit are supposed to be made by the company that not only satisfies the
shareholders but also focuses on a positive growth. The groups of employees, customers,
suppliers, environmental groups, political groups, media groups, local communities,
government groups, and financial institutions form the stakeholders of a company. Everyone
has their own contributions towards the company that is considered as a wholesome effort
needed to let a company expand and grow positively. This particular view for the
stakeholders paints the world of corporate organizations like an ecosystem of groups related
to each other where every small or big sector needs satisfaction and consideration that is
required to keep an organization healthy and make it successful in the long run. In this paper,
an annotated bibliography on the stakeholder theory will discussed and how the application
of stakeholder theory on non-profit organization helps it grow and expand.
The theory of stakeholders says that a group of people or any individual affecting the
objectives of the organization or gets affected by the same is a stakeholder. It is generally a
concept of redefining an organization. The stakeholders of a company decides how the
company should be and how it can be conceptualized. As per Friedman, any organization in
itself should be considered as a group of stakeholders and the organization’s purpose is to
manage the viewpoints, interests and the requirements of stakeholders. The management of
stakeholders is thought to get consummate by managers of the firm. On the other hand, the

Leading and Managing Non-Profit Organization2
corporation should be managed by the managers which benefits the stakeholder and ensure
their participation and rights in the decision making process. The management also acts an
agent of stakeholder in regards to ensure survival of organization along with safeguarding
stakes of every group for long term.
Jones, T. M., Harrison, J. S., & Felps, W. (2018). How applying
instrumental stakeholder theory can provide sustainable competitive
advantage. Academy of Management Review, 43(3), 371-391.
This article examines the application of stakeholder theory that can provide an
advantage of sustainable competition to the nonprofit organizations. The managers of an
organization are the ones who make the everyday decisions that need to be undertaken for
functioning of the firm. Other than the owner and the managers, other people are also
involved into activities of the non-profit organizations. According to Steinberg, a theory of
principle- agent is applied to some non-profit organizations. It concludes that when multiple
number of principles are present with varying objectives, it hinders potentiality of the agency
in regards to stakeholder theory. Keeping this view in line, the stakeholder theory is more
comprehensive on management and governance of the non-profit organizations.
Greiling, D., Stötzer, S., & STOETZER, S. (2016). Accountability
Reporting in Austrian Non-Profit Organizations-More Than a
Compliance Instrument?. Public Administration Quarterly, 256-287.
This article examines the fact that in effectiveness and efficient terms, the non-profit
organizations everywhere is increasing in number and they are also bound to demonstrate
performance. As per (Greiing, Stotzer & Stotzer, 2016.) Introduction for the measurement
system of performance gets highly advocated towards not only for external promotion of