stakeholder theory
Stakeholder theory is a business concept that suggests companies should consider the interests of all parties affected by their actions, not just their shareholders. This includes employees, customers, suppliers, communities, and the environment. The idea is that by addressing the needs and concerns of all stakeholders, businesses can create long-term value, improve relationships, and foster sustainable success. Rather than focusing solely on maximizing profits, companies should aim to balance different interests to promote overall well-being and responsible practices.
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Stakeholder Theory posits 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. The idea is that by addressing the needs and concerns of these diverse groups, companies can achieve long-term success and sustainability. Instead of focusing solely on profit, businesses are encouraged to create value for all stakeholders, which fosters trust, loyalty, and overall better performance. Ultimately, a stakeholder-oriented approach aligns business success with positive social and environmental impact.
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Stakeholder theory is a business concept that suggests companies should consider the interests of all parties affected by their operations, not just shareholders or investors. This includes employees, customers, suppliers, the community, and the environment. The idea is that by addressing the needs and concerns of these diverse groups, businesses can create more sustainable and ethical practices, ultimately benefiting everyone involved and fostering long-term success. In essence, it promotes a holistic approach to decision-making that values balanced relationships over short-term profits.