Firms as Stakeholders

Firms as stakeholders means that companies themselves are involved in and affected by their business environment, similar to other stakeholders like employees, customers, or communities. As stakeholders, firms have an interest in sustainable practices, regulations, and societal impacts because their operations, reputation, and long-term success depend on maintaining good relationships with those groups. Essentially, companies are both the drivers of economic activity and part of the social fabric, making them key participants that can influence and be influenced by broader societal and environmental factors.