Edward Freeman (Stakeholder Theory)

Edward Freeman's Stakeholder Theory argues that businesses should consider the interests of all parties affected by their actions, not just shareholders. This includes employees, customers, suppliers, communities, and the environment. By recognizing and balancing the needs of these stakeholders, companies can create more sustainable value and foster better relationships. Freeman's approach suggests that when businesses operate with a broader responsibility, they can enhance their long-term success and contribute positively to society, rather than focusing solely on profit maximization for shareholders.