Stakeholder Theory

Stakeholder theory was originally and is still primarily a strategic management concept.
The goal of stakeholder theory is to help corporations strengthen relationships
with external groups in order to develop a competitive advantage. The contribution
of stakeholder theory to the corporate sustainability is the addition of
business arguments as to why companies should work toward sustainable
development. Stakeholder theory suggest s that it is in the company’s own best
economic interest to work in this direction because doing so will strengthen
its relationship with stakeholders, which in turn will help the company meet
its business objectives.