stakeholder model

The stakeholder model is a way of understanding how different groups affect and are affected by a business or organization. Instead of focusing solely on shareholders (who own part of the company), this model recognizes that other parties—such as employees, customers, suppliers, the community, and the environment—also have a stake in the organization’s actions and outcomes. By considering these various stakeholders, companies can make decisions that balance interests, leading to sustainable success and positive relationships rather than solely prioritizing profit. This approach promotes accountability and encourages responsible business practices.