The problem to be investigated in “A Stakeholder Theory of the Modern Corporation” by R. Edward Freeman is the intrinsic relationship between a stakeholder and a shareholder with that of an artificial corporate entity and their consequent influences. So, what problems did Freeman see with government regulations controlling business operations? Before this century, there were few constraints or obstacles in the day-to-day operations of a company. Managerial capitalism was used like a large club capable of striking down, without dialogue, any adversary who created an obstacle to profit for the company's shareholders. Suppliers and customers were managed in a disorganized manner due to a lack of common guidelines. Largely before managerial capitalism, a diverse ownership of shareholders of a large managerial enterprise would have given blind consent to decisions at all levels. This is because shareholders had neither the time nor the commitment to worry about such deals. All they cared about was revenue. (Church, 1986) The intervention of government rulings, such as the National Labor Relations Act and the Clean Air Act, to name a few, provided stakeholders with a new status several steps higher on the priority ladder. They were no longer subordinate to the shareholders. Due to government regulations on corporations, managers must first work within the protective law put in place for the benefit of stakeholders before considering the wishes of shareholders. (Freemen, cited in Jennings, 2009) Lists a company's stakeholders. Are the government and competitors included? Why or why not? In addition to shareholders, a company is made up of people or groups who have vested interests. They are... half of the paper... readings (6 ed., pp. 79-85). Mason, OH: South-Western Cengage Learning.Lee, E. (2010, November). Marketing the airport expansion by interested parties will help Atlantic City get off the ground. njbiz, 23, 11. Retrieved from web.ebscohost.comPonti, G. (2000). Divide the child in two and solve Solomon's dilemma with extremely rational agents. Journal of Evolutionary Economics, 10, 449. Retrieved from web.ebscohost.comRozario, K. (2006, July). The London City case study is ready to take off. Director, 59(12), 58. Retrieved from web.ebscohost.comSurprenant, C.W. (2010, June). Kant's contribution to moral education: the importance of catechism. Journal of Moral Education, 39, 165-174. Retrieved from web.ebscohost.comWhitman, M. (1999, Spring). Global competition and the changing role of American companies. Washington Quarterly, 22(2), 59-82. Retrieved from web.ebscohost.com