The Stakeholder Model of Governance

The Stakeholder Model of Governance is a way organizations are managed that considers the interests of all parties affected by its actions—such as employees, customers, shareholders, suppliers, communities, and the environment. Instead of focusing solely on maximizing profits for shareholders, this approach aims to balance various interests to promote long-term sustainability and social responsibility. It recognizes that a successful organization depends on maintaining good relationships and trust with all stakeholders, ensuring decisions benefit a broader group and contribute positively to society.