Stakeholder Theory: A Millennial Lens on Institutional Foundations, Functional Imperatives, and the Governance of Value
DOI:
https://doi.org/10.59413/ajocs/v7.i3.49Keywords:
Stakeholder theory, corporate governance, value creation, organisational performance, stakeholder managementAbstract
Stakeholder theory posits that organisations must create value not only for shareholders but for all parties affected by their operations. This study examines the historical evolution of stakeholder thinking, the broad categories of stakeholders, the two dominant perspectives through which stakeholder management is practised, the core theoretical framework and related theories that underpin the process, the rationale for stakeholder governance and regulation, and the strategic functions that stakeholder engagement serves for households, firms, and government. The study contends that organisations operating with a millennial lens must integrate institutional and functional stakeholder perspectives to sustain profitability and long-run societal growth.
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