Comparative analysis of stakeholder primacy theory and shareholder theory in healthcare management through the business ethics

As of mid-19th century transformations in the realm of healthcare services, arising from scientific developments in medicine and commodification of health, not only the issues such as funding, efficiency, accountability, the protection of the public interest, service penetration and quality surveillance but also ethics, apart from medical ethics, has unavoidably become an element of management for the healthcare institutions. The offbeat role of ethics in healthcare management processes is analyzed within the context of theory comparisons. To this end, Shareholder Primacy Theory and Stakeholder Theory is undertaken in detail. Theoretical framework of ethical comparison is clearly circumscribed by Utilitarianism and Kantian deontological approach and potential room for any integration of these major ethical theories in healthcare management ethics is examined throughout the entire thesis. In the final analysis, it is shown that any healthcare management with a single target oriented approach is imminently dysfunctional in covering complex nature of healthcare services and thus incapable of being accomplished any given corporate mission at all. By the same token, it is also asserted that Stakeholder Theory with its strategic management model and scope of power intending to embrace different aspects of dynamic change in business activity, including ethical priorities, is a congruent business ethics theory in healthcare management. Keywords:Healthcare Management, Business Ethics, Shareholder Primacy Theory, Stakeholder Theory, Deontology, Utilitarianizm, Stakeholder Analysis, Stakeholder Management Strategy.