Stakeholder theory

An approach to business that incorporates all the interests of stakeholders in a business. It widens the view that a firm is responsible only to its owners? instead it includes other interested groups, such as its employees, customers, suppliers, and the wider community, which could be influenced by environmental issues. It thus attempts to adopt an inclusive rather than a narrow approach to business responsibility.


reference: Business Studies / Accounting. Accounts & Finance Glossary. Jim Riley BA(Hons) MBA FCA // tutor2u