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More recently, there is a broader meaning of the term, which includes:
STAKEHOLDER VIEW Post, Preston, Sachs (2002) , in their theory called Stakeholder View , use the following definition of the term "stakeholder": "The stakeholders in a corporation are the individuals and constituencies that contribute, either voluntarily or involuntarily, to its wealth-creating capacity and activities, and that are therefore its potential beneficiaries and/or risk bearers." This definition differs from the older definition of the term stakeholder in (Freeman, 1984) that also includes competitors as stakeholders of a corporation. COMMON USAGE In the last decades of the 20th Century , the word "stakeholder" has evolved to mean a person or organization that has a legitimate interest in a project or entity. In discussing the decision-making process for institutions -- including large business Corporation s, Government Agencies and Non-profit Organization s -- the concept has been broadened to include everyone with an interest (or "stake") in what the entity does. That includes not only its vendors, Employees , and Customer s, but even members of a community where its offices or factory may affect the local economy or environment. In that context, "stakeholder" includes not only the directors or trustees on its governing board (who are stakeholders in the traditional sense of the word) but also all persons who "paid in" the figurative stake and the persons to whom it may be "paid out" (in the sense of a "payoff" in Game Theory , meaning the outcome of the transaction). Example
The holders of each separate kind of interest in the entity's affairs are called a ''constituency,'' so there may be a constituency of Stockholders , a constituency of adjoining property owners, a constituency of Bank s the entity owes money to, and so on. In that usage, "constituent" is a synonym for "stakeholder." In the field of corporate governance and corporate responsibility a major debate is ongoing about whether the firm should be managed for stakeholders, stockholders or customers. Those who support the stakeholder view usually base their arguments on three key assertions. 1) Value can best be created by trying to maximize joint outcomes. For example, according to this thinking, programs that satisfy both employees' Need s and stockholders' Want s are doubly valuable because they address two Legitimate sets of stakeholders at the same time. 2) They also take issue with the preeminent role given to stockholders by many business thinkers. The argument is that debt holders, employees, and suppliers also make contributions and take risks in creating a successful firm. 3) These Normative arguments would matter little if stockholders had complete control in guiding the firm. However, many believe that due to certain kinds of Board Of Directors structures, top managers like CEOs are mostly in control of the firm. Examples of common stakeholders SEE ALSO
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