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This chapter is from the book

FoE Stakeholders

This book is organized around the five major stakeholders of modern corporations. As a memory tool, we have listed them in Table 1.1 in a way that creates the acronym “SPICE.”

Table 1.1 The five major stakeholders of modern corporations




Local and broader communities as well as governments and other societal institutions, especially non-governmental organizations (NGOs); we also include the environment as part of this stakeholder


Upstream partners such as suppliers, horizontal partners,and downstream partners such as retailers


Individual and institutional shareholders as well as lenders


Individual and organizational customers


Current, future, and past employees and their families

As Figure 1.1 shows, each stakeholder is linked to all of the others. As in any good recipe, the individual ingredients come together to form something completely new; the whole is greater than the sum of the parts.

Figure 1.1

Figure 1.1 The SPICE stakeholder model

Each of these relationships is an essential piece of the puzzle, and each must be managed in the following ways:

  • There is a two-way flow of value between both parties to the relationship.
  • The interests of all parties are aligned.

This is the essence of great management. It is what all corporations should strive for. It is the way to maximize the returns to society of all the investments that flow into every organization. It is the Firms of Endearment way.

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