What are some potential weaknesses of stakeholder theory? Can they be remedied?
- What are some potential weaknesses of stakeholder theory? Can they be remedied?
The stakeholder theory discusses ethics and values in organisational management. R. Strategic Management by Edward Freeman provides thorough explanations. The stakeholder theory outlines certain moral actions that organisations must do to respect their stakeholders. Because they made investments in the firm, shareholders received all of the company's values in the past, but the system has altered now. Today, every corporation views its other stakeholders as an integral component of the whole. They treat all of their stakeholders equally. Both internal and external stakeholders may be included in this group. Suppliers, the community, the government, shareholders, and consumers are examples of internal stakeholders. Employers, managers, and the company's owners are examples of external stakeholders.
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