ABSTRACT
Principle 3 states that, while identifying stakeholders is easy, Prioritizing competing stakeholder interests is difficult. It lays out the broad ideas behind stakeholder theory, which is the intellectual backbone of SVC. Importantly, however, it also extends stakeholder theory by moving beyond merely defining a firm’s stakeholders to developing a seven-step process of prioritization as a decision-making tool managers can use to extract the maximum value of a stakeholder perspective. It is the intersection of the firm’s strategic interests, the evolution of a particular issue, and the stakeholder’s motivations to respond (and the impact those responses can have) that determines the need for the firm to act.
