What is the core tenet of stakeholder theory?

The core tenet of stakeholder theory is that a company or organization has responsibilities to all of its stakeholders, not just its shareholders. Stakeholders are defined as any individuals or groups who can affect or are affected by the organization's actions, decisions, policies, or practices. This includes employees, customers, suppliers, communities, government agencies, and any other parties with a vested interest in the organization's activities. Stakeholder theory argues that organizations should consider the interests and well-being of all stakeholders when making decisions, rather than solely focusing on maximizing shareholder value. This involves understanding the needs and expectations of different stakeholder groups, engaging in dialogue with them, and striving to create value for all stakeholders, not just shareholders. It acknowledges that organizations operate within a complex web of relationships and that their success depends on the support and cooperation of various stakeholder groups.