Intrinsic Stakeholder Commitment

The definition of intrinsic and instrumental stakeholder commitment refers to a company's commitment to its shareholders, customers, and other stakeholders. This view is based on Edward Freeman’s earlier work, which states that business decisions have an impact on shareowner results and that this is a fundamental principle. It suggests that the focus of ethics should be placed on the responsibility that comes with decisions that can affect others. Additionally, it argues against the idea of stakeholder interests being completely unrelated to a company's strategic interests. These commitments are independent of any corporate strategy and require outside help in order to be properly understood and managed.