Originally published: 1 October 2009 by the Business Roundtable Institute for Corporate Ethics (University of Virginia Darden School of Business)
Stakeholder Theory in Three Minutes
R. Edward Freeman, professor at the University of Virginia's Darden School of Business, introduced stakeholder theory in his 1984 book Strategic Management: A Stakeholder Approach. In this short video from the Business Roundtable Institute for Corporate Ethics, he explains the idea simply: business is about creating value for customers, suppliers, employees, communities and financiers together, not trading one group off against another.
Key Takeaways
- Every successful business creates value for multiple stakeholders, not only shareholders.
- Stakeholder interests are interconnected and can move in the same direction.
- Companies that ignore their stakeholders risk decline.
Why It Matters for ESG and Sustainability Management
Stakeholder theory is the intellectual foundation of modern ESG, materiality assessment and sustainability reporting under GRI, HKEX and SGX rules. Learn how GreenCo runs stakeholder engagement for ESG.
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