Stakeholder
orientation is a state of mind on the part of a company. It is part of the companys corporate
culture. It exists when the company is concerned about the impact of its actions on all of its
stakeholders, not just those who own the company.
To understand this, let us
first look at how stakeholder can be defined. We can say that any person or group of people
is a stake holder if it fits two main criteria. First, it must be someone who is or can be
affected by the actions of a firm. Second, it must be able to grant or withdraw some resources
that are important to the firm. What this means is that any firm has many stakeholders. These
include the firms owners, its employees, its customers, its suppliers, and even, potentially,
the people of the community in which the firm operates.
The stakeholder
orientation tries to value all of these stakeholders. It truly commits to taking the needs of
all stakeholders into account when it makes decisions about what to do. Thus, it is an attitude
that is more focused on doing the right thing by everyone the firm affects, not just on making
money.
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