A Stakeholder Approach to the Theory of Organizational Management

The Stakeholder Approach to Organizational Management emphasizes that a company’s success depends on managing relationships with all parties affected by its actions—such as employees, customers, suppliers, investors, and the community. Instead of focusing solely on maximizing profits for shareholders, this approach recognizes that meeting the needs and concerns of all stakeholders creates a sustainable and ethical business. It encourages organizations to consider the broader impact of their decisions, fostering long-term value and positive relationships that benefit both the company and society.