March 2018
Beginner
432 pages
8h 28m
English
This chapter will cover basic stakeholder concepts as we move toward fostering a stakeholder orientation in the organization. We will explore the potential of basing value creation on a stakeholder approach, which is different from the traditional shareholder approach focused on profit maximization alone.
Stakeholders are all the entities connected to, and impacted by, the business. We can classify them as inner circle and outer circle. The interaction between the company and its inner-circle stakeholders is relational (i.e., two-way, sustained, and mutually value-creating) and voluntary, whereas relationships with outer-circle stakeholders are more episodic and often involuntary. Figure 7-1 gives examples of ...