The Stakeholder Strategy (Freeman)

The Stakeholder Strategy, developed by R. Edward Freeman, emphasizes that businesses should actively manage relationships with all groups affected by or affecting the company—such as customers, employees, suppliers, communities, and investors. Instead of focusing solely on shareholders’ profits, this approach encourages companies to create value for all stakeholders, fostering trust, cooperation, and long-term success. By considering the interests of various groups, companies can make more responsible decisions that promote sustainability and ethical practices, ultimately benefiting both the business and society.