Attending to the needs of all stakeholders will make an enterprise more successful in the long term, but it’s up to boards to engage with them in a fair and open way.
Everyone is talking about them, but who or what are they? The term “stakeholder” is a catch-all shorthand for all those who can in any way affect, or be affected by, the fortunes and actions of a company or organisation.
It is a term used to show that it is not all about shareholders; a company has responsibilities that reach far wider than its investors. Yes, shareholders are included in this wider population, but this wider group also includes employees, customers, suppliers, regulators—even journalists.
“Ultimately, businesses create value, but that value has to be shared across a range of stakeholders."
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