Stakeholder Value Perspective
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.