Stakeholder theory: antidote to a drug company's market health? A case study of Synthroid

Abstract

Purpose

The purpose of this paper is to examine the history and strategies used by Synthroid producers, currently Abbott Laboratories, one of the top drug companies in the world through the use of stakeholder theory.

Design/methodology/approach

News releases and The Wall Street Journal from similar dates were compared and contrasted for examples of Donaldson and Preston's three typologies of stakeholder theory, which include descriptive accuracy, instrumental power, and normative validity.

Findings

Illustrations of stakeholder typologies reveal that public relations messages can be used to influence stakeholders. However, the examples also illustrate that ethics may be a separate issue.

Practical implications

When consumers rely on products, such as prescription drugs, for good health and even life itself, there is a fine line between product and drug product.

Originality/value

This paper demonstrates the value of Donaldson and Preston's typology in evaluating the market health of organizations.

Citation

Bornsen, S., Ostrom‐Blonigen, J. and Plowman, K.D. (2008), "Stakeholder theory: antidote to a drug company's market health? A case study of Synthroid", Journal of Communication Management, Vol. 12 No. 1, pp. 5-17. https://doi.org/10.1108/13632540810854208