Abstract:

First, short insights on the not-computable stakeholder theory and the game theory for the harmony game are provided. The game theory is computable but does not explicitly consider ethical aspects. The expanded game theory here presented for the harmony game derives benefits from both theories: It is computable and considers ethical aspects. At a glance, all consequences for active decision makers and passive stakeholders are evident.

The expanded game theory is applied on the two examples of “objective agreement” and “tax evasion”. In both examples, three ways by which stakeholders can influence the decision makers to behave more ethically are demonstrated:

• Educating the decision makers
• Controlling the decision makers
• Adapting the framework in the decision making

Some ideas for further research have been indicated.

The expanded game theory for the harmony game is a new framework that serves as the basis for holistic tools, fosters ethical leadership and altruism, and inhibits short-term thinking of economic rationality in the decision makers.