What is stakeholder theory?
Stakeholder theory is a concept in business ethics that emphasizes the importance of considering all stakeholders in decision-making.
Who are considered stakeholders?
Stakeholders include anyone affected by a company's actions, such as employees, customers, suppliers, investors, and the community.
How does stakeholder theory differ from shareholder theory?
While shareholder theory focuses on maximizing profits for shareholders, stakeholder theory prioritizes the interests of all stakeholders.
Can you give an example of stakeholder theory in action?
Sure! A company might implement environmentally friendly practices to benefit the community and future generations, not just shareholders.
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