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STAKEHOLDER THEORY - Coggle Diagram
STAKEHOLDER THEORY
Who the stakeholders are.
Anyone affected by a company's operations
Employees
Customers
Suppliers
Communities
Which are the moral responsibilities for managers
To understand
The interests of all stakeholders
To balance
Foster positive relationships
Ensure that their business practices contribute to the well-being
Of the broader community while delivering on the firm's purpose.
Who the shareholders are.
Individuals or entities
Own shares in a corporation
Represent their ownership stake
They have rights
To profit
Decision-making
What does the Separation Theory consist of.
Posits a distinction between interests
Stakeholder's
Shareholder's
Business operates as an amoral economic activity
Buisness focused solely on maximizing shareholder value.
What is the Shareholder primacy view.
Asserts that the primary objective of a corporation is to maximize shareholder value
Prioritizing financial returns for shareholders
Puting in second place the interests of other stakeholders.
The main thesis of the Stakeholder Theory.
Is that businesses should create value for all stakeholders
Not just shareholders values
Recognizing and addressing the legitimate interests of all parties
Affected by their activities.
How is the Stakeholder Theory thinking about value.
Value as a collaborative outcome
Through
Relationships
Cooperation
Emphasizing that economic value
Is generated when all parties work together