Definition
Stakeholder theory holds that companies must serve everyone affected by their actions—employees, customers, suppliers, society—not just shareholders.

Introduction
A company is a community, not a machine. Serving all stakeholders creates resilient wealth rather than fragile profits.

Explanation
1️⃣ Internal Stakeholders – Employees and investors.
2️⃣ External Stakeholders – Customers, suppliers, government, society.
3️⃣ Balancing Interests – Prioritize long-term harmony over short-term gain.
4️⃣ Corporate Citizenship – Firms as responsible social actors.
5️⃣ Measurement – ESG and stakeholder satisfaction reports.

Key Takeaways

Stakeholder harmony sustains success.

Citizenship begins where legal duty ends.

Ethical profit uplifts everyone.

Real-World Case
The Body Shop, founded by Anita Roddick, pioneered ethical sourcing and community trade long before ESG existed, proving that compassion can be competitive advantage.
Reference: https://www.thebodyshop.com