In business law, a stakeholder is a party who has an interest and might be affected by the performance and outcome of an entity’s business, project, or enterprise. Common examples of some of a corporation’s stakeholders are shareholders, investors, employees, suppliers, the community, and the government.

The stakeholder theory is a theory of organizational management and business ethics that accounts for multiple constituencies impacted by business entities like employees, suppliers, local communities, creditors, and others. [1]

Aug 6, 2019 · There are three aspects of the theory: 1) instrumental power, 2) descriptive accuracy and 3) normative validity. [125] . The first aspect of the theory creates a framework for checking the connections between the practice of stakeholder management and the success of a corporation’s performance.

Find the legal definition of STAKEHOLDER from Black's Law Dictionary, 2nd Edition. Group, organization or person who has a stake that can be affected by the organizations objectives, policies and actions.

In August 2019, the Business Roundtable (BRT) released its new stakeholder model of the revised purpose of the corporation, stating explicitly that businesses exist to serve multiple stakeholders—including customers, employees, communities, the environment, and suppliers—in addition to shareholders.

Sep 30, 2024 · A stakeholder is a party with a vested interest in an enterprise; stakeholders in a corporation include investors, employees, customers, and suppliers.

Sep 29, 2020 · In the parlance of stakeholder capitalism, the term similarly refers to a wide variety of persons who, like their etymological antecedents, have no direct financial investment in the event. These...

Sep 20, 2019 · Recently, a number of questions have been raised about the legal responsibilities of directors in pursuing long-term sustainable business strategies and taking into account ESG (environmental, social, governance) factors and the interests of …

Dec 1, 2020 · To address growing concerns about the negative effects of corporations on their stakeholders, supporters of stakeholder governance (“stakeholderism”) advocate a governance model that encourages and relies on corporate leaders to serve the interests of stakeholders and not only those of shareholders.

What does "stakeholder" mean in legal documents? A stakeholder is someone who has a vested interest in a business or project. This means they care about how well the business performs because it can affect them in some way.