Difference between revisions of "Stakeholder Value Perspective"

Revision as of 21:18, 3 January 2023

What is the Stakeholder Value Perspective?

The stakeholder value perspective is a business and management approach that aims to create value for all stakeholders in an organization, not just shareholders. Stakeholders are defined as any individual or group that has a stake or an interest in the organization and can include employees, customers, shareholders, suppliers, regulators, and the community.

According to the stakeholder value perspective, an organization should aim to create value for all stakeholders by aligning its actions with their needs, expectations, and interests. This can involve trade-offs and conflicts of interest and requires organizations to be transparent and accountable for their decisions and actions.

The stakeholder value perspective is based on the idea that an organization's success is not just measured by financial performance, but also by its ability to create value for all stakeholders. It suggests that an organization's long-term sustainability and success depend on its ability to build and maintain relationships with all stakeholders and to balance their interests in a way that is fair and ethical.

The stakeholder value perspective has implications for business strategy, governance, and management, and has influenced the development of corporate social responsibility (CSR) and sustainability practices. It has also been a subject of debate and criticism, with some arguing that it is too broad and vague and that it can conflict with shareholder interests.

References

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-[[Stakeholder]] Value Perspective is the view that sees organizations primarily as coalitions which must serve all parties involved. The organizational purpose is to achieve satisfaction among all stakeholders.<ref>[https://www.mbabrief.com/what_is_stakeholder_value_perspective.asp What is Stakeholder Value Perspective? Definition and meaning]</ref>
+== What is the Stakeholder Value Perspective? ==
+The '''stakeholder value perspective''' is a business and management approach that aims to create value for all stakeholders in an organization, not just shareholders. Stakeholders are defined as any individual or group that has a stake or an interest in the organization and can include employees, customers, shareholders, suppliers, regulators, and the community.
+According to the stakeholder value perspective, an organization should aim to create value for all stakeholders by aligning its actions with their needs, expectations, and interests. This can involve trade-offs and conflicts of interest and requires organizations to be transparent and accountable for their decisions and actions.
+The stakeholder value perspective is based on the idea that an organization's success is not just measured by financial performance, but also by its ability to create value for all stakeholders. It suggests that an organization's long-term sustainability and success depend on its ability to build and maintain relationships with all stakeholders and to balance their interests in a way that is fair and ethical.
+The stakeholder value perspective has implications for [[Business Strategy|business strategy]], governance, and management, and has influenced the development of corporate social responsibility (CSR) and sustainability practices. It has also been a subject of debate and criticism, with some arguing that it is too broad and vague and that it can conflict with shareholder interests.
-== What is the shareholder value perspective? ==
-A shareholder value perspective is an approach to running a company that focuses on maximizing profits for shareholders. It does not take into account social responsibility or other considerations, and its primary aim is the pursuit of enlightened self-interest in order to maximize wealth for society as a whole. This approach encourages companies to focus on activities that are profitable for shareholders, such as increasing sales and reducing costs. This type of thinking has become especially important as it helps companies make decisions that are beneficial to their shareholders while still maintaining market-based relationships with their stakeholders.
 === See Also ===
-*[[Business Strategy|Define Business Strategy]]
+*[[Governance, Risk And Compliance (GRC)]]
-*[[IT Strategy (Information Technology Strategy)|Definition of IT Strategy]]
-*[[E-Strategy|Define e-Business Strategy]]
-*[[IT Governance|Define Corporate Governance of Information Technology]]
-*[[Enterprise Architecture|Define enterprise architecture]]
-*[[IT Sourcing (Information Technology Sourcing)|What is IT Sourcing?]]
-*[[IT Operations (Information Technology Operations)|Define IT Operations]]
-*[[Chief Information Officer (CIO)|CIO]]