Firms and their stakeholders

A firm is a business organization that produces goods or services to meet market demand. Its stakeholders are individuals or groups affected by or with an interest in the firm, including owners or shareholders, employees, customers, suppliers, creditors, and the community. Stakeholders influence the firm's decisions and are impacted by its operations, profits, and practices. Effective management of stakeholder relationships helps ensure the firm's success and sustainability by aligning objectives and addressing diverse needs and concerns.