Stakeholders
A STAKEHOLDER is defined as any individual, group, or organization that can affect or be affected by the actions, objectives, and policies of a business or project. The concept of the stakeholder was popularized by R.-EDWARD-FREEMAN in his 1984 book, Strategic Management: A Stakeholder Approach. This framework shifted the focus of CORPORATE-GOVERNANCE from a purely SHAREHOLDER-centric view to a more inclusive model known as STAKEHOLDER-THEORY.
Categories of Stakeholders
Stakeholders are typically divided into internal and external categories. Internal Stakeholders are those who are directly involved in the operations of the entity, such as EMPLOYEES, MANAGERS, and OWNERS. External Stakeholders are parties that do not work for the company but are impacted by its outcomes, including CUSTOMERS, SUPPLIERS, GOVERNMENTS, and the LOCAL-COMMUNITY. Detailed guidelines on managing these relationships are provided by the OECD Principles of Corporate Governance.
Stakeholder Management and Analysis
In PROJECT-MANAGEMENT, successful outcomes depend on effective STAKEHOLDER-MANAGEMENT. This involves STAKEHOLDER-ANALYSIS, a process of identifying and prioritizing stakeholders based on their influence and interest. Tools such as the POWER-INTEREST-GRID or the SALIENCE-MODEL are used to determine STAKEHOLDER-ENGAGEMENT strategies. Organizations that prioritize these relationships often see improvements in their CORPORATE-SOCIAL-RESPONSIBILITY performance and long-term SUSTAINABILITY. Research from the Harvard Business Review emphasizes that balancing stakeholder interests is vital for modern BUSINESS-ETHICS.