Stakeholder theory asserts that while there are other stakeholders in business, the most important is still the shareholder and their needs should take precedence of the needs of other stakeholders.

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Stakeholder theory posits that all stakeholders of a business, including customers, employees, suppliers, communities, and shareholders, have a legitimate interest and should be considered in business decision-making. The theory does not prioritize the needs of one stakeholder over the others, but instead advocates for a balance of their interests.

Stakeholder Theory Asserts That While There Are Other Stakeholders in Business