The Stakeholder Theory

Stakeholder Theory is a concept in business ethics that suggests that companies 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 respecting and addressing the needs of these groups, a company can create long-term value and sustain success. Rather than focusing solely on profit, businesses should aim for a balance that benefits everyone involved, fostering goodwill and cooperation, which can ultimately lead to better outcomes for the company and society.