chapter  3
9 Pages

Stakeholder Theory

Another approach that attempts to broaden the responsibilities of business and prescribe a different model for understanding the relationship of business to society is the stakeholder approach. This stakeholder concept has been widely employed to describe and analyze the corporation’s relationship to a broader constituency than that of stockholders. In 1995, Tom Donaldson and Lee Preston reported that there were about a dozen books and more than 100 articles with primary emphasis on the stakeholder concept.1 Conferences have been held that dealt exclusively with the concept, and journals have published special issues that focused on stakeholder theory and related concerns.