Stakeholder theory highlights three key aspects:
1. Identification of Stakeholders
This aspect focuses on identifying all individuals or groups who have a stake in the organization's actions and decisions. Stakeholders can include:
- Internal stakeholders: Employees, managers, owners, and board members.
- External stakeholders: Customers, suppliers, creditors, investors, government agencies, community members, and the environment.
2. Stakeholder Interests and Expectations
Once identified, understanding each stakeholder's interests and expectations is crucial. This involves:
- Analyzing their needs, values, and priorities.
- Identifying their potential impact on the organization.
- Determining their level of influence and power.
3. Managerial Responsibilities
The final aspect emphasizes the responsibility of managers to consider and balance the interests of all stakeholders in their decision-making. This includes:
- Developing strategies that address stakeholder needs.
- Communicating effectively with stakeholders.
- Building trust and relationships with stakeholders.
By understanding and applying these three aspects, organizations can create a more sustainable and ethical business model that benefits all involved.
