Stakeholder theory
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Title: Stakeholder theory

Essay Details:

Subject: Business
Author: Jeremy O
Date: July 10, 2013
Level: University
Grade: B
Length: 3 / 621

Essay text:

The third dimension deals with the power that the stakeholders have within the firm. While one can be considered a stakeholder by possessing one of these dimensions, it is essential to possess all three dimensions to be considered a true definitive stakeholder. This theory differs from the shareholder theory in that a shareholders primary duty is to maximize returns and deal with no other aspects of the company. Basically advocating profitability by any means necessary bringing in a very moral issue. Many believe the stakeholder theory seems to disregard the interests of the shareholders', however this point is misinterpreted because by using the stakeholder theory to ensure long-term sustainability of that company in itself takes account of the interests of the shareholders...

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