Stakeholder theory is an understanding of how business works that:

Question

Quizplus · Accepted Answer

Stakeholder theory is based on the idea that businesses have a responsibility to not only their shareholders but also to all those who may be affected by their actions, including employees, customers, suppliers, the community, and the environment. This approach takes into account all identifiable interest holders and emphasizes the importance of considering their needs and interests in business decision-making. Stakeholder theory does not reject the importance of the bottom line, but rather it argues that focusing solely on profits at the expense of other stakeholders can have negative long-term consequences for the business.

Stakeholder Theory Is an Understanding of How Business Works That