stakeholderism

Stakeholderism is a concept in business ethics and organizational management that posits companies have responsibilities to all parties who have a stake in the organization, not just its shareholders. These stakeholders typically include employees, customers, suppliers, communities, and the environment, in addition to shareholders. The core idea is that these groups are all affected by the company's operations and decisions, and therefore, their interests should be considered in corporate governance and strategy.

This contrasts with shareholder primacy, which argues that a company's primary duty is to maximize profits for its shareholders. Stakeholderism suggests a broader, more inclusive approach to corporate responsibility, emphasizing long-term value creation and sustainability by balancing the needs of various stakeholders. Proponents argue that considering a wider range of interests can lead to more resilient and ethical businesses, fostering trust and loyalty among all involved parties. Critics, however, sometimes express concerns about the practical challenges of balancing competing stakeholder interests and the potential for a dilution of accountability. The implementation of stakeholderism can manifest in various ways, such as corporate social responsibility initiatives, ethical sourcing policies, and employee engagement programs.