What is stakeholder theory and can you give me some examples?

What is stakeholder theory and can you give me some examples?

Stakeholder theory suggests that businesses should consider the interests of all stakeholders, not just shareholders. For example, a company might engage with employees, customers, suppliers, and the community to ensure their needs are met.

Can you provide a specific example of a company that applies stakeholder theory?

Sure! A great example is Patagonia, which prioritizes environmental sustainability and fair labor practices, engaging with various stakeholders to align their business practices with social responsibility.

How does stakeholder theory impact business decisions?

Stakeholder theory impacts business decisions by encouraging companies to balance profit-making with ethical considerations, leading to more sustainable and socially responsible practices.

Are there any criticisms of stakeholder theory?

Yes, some critics argue that stakeholder theory can lead to conflicts of interest and may dilute the focus on profitability, making it harder for companies to make clear decisions.