Elkington's Stakeholder Value Theory

Elkington's Stakeholder Value Theory emphasizes that businesses should create value not only for shareholders but also for all stakeholders involved—such as employees, customers, suppliers, communities, and the environment. It advocates a balanced approach, encouraging companies to consider social, economic, and environmental impacts in their decisions. By doing so, organizations build sustainable relationships and long-term success, recognizing that their actions affect a broad network of parties beyond just investors. This holistic perspective promotes responsible and ethical business practices that benefit both the company and society at large.