Stakeholder Theory Vs. Stakeholder Thinking

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Stakeholder theory and definition Stakeholder is defined as “any group or individual who can affect or is affected by the achievement of the organization’s objectives” (Freeman 1984). Stakeholder theory, when introduced in the 1980s, signify a major change in how relationships within a business might coexist and benefit one another. The concept of “Stakeholder theory” or “stakeholder thinking” is about identifying groups who are stakeholder in a corporation and manage them. It states that organizations are collections of several different parties, each with its own goals and objectives. Stakeholder concept has been used, either explicitly or implicitly, for descriptive purposes, and also as a framework from which different theories and ideas can be derived. It offers an proper lens for consideration of more composite perspective of the value that stakeholders seek as well as new ways to measure it. Stakeholder thinking has emerged to understand the three interrelated business problems indicating the problem of how value is created and traded, problem of connecting ethics and capitalism, and the problem of helping managers think about management. Stakeholder theory can be upstretched with a full different collection of ethical questions without any context to other theories. Concept of stakeholder theory Stakeholder theory was introduced by “R. Edward Freeman” (1984), also known as the “father of stakeholder theory”. His theory states that “the individuals or groups that may
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