MGMT 200 Chapter Notes - Chapter 3: Stakeholder Management, Fiduciary
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I(cid:374) toda(cid:455)"s (cid:449)o(cid:396)ld (cid:271)usi(cid:374)esses a(cid:396)e (cid:374)o lo(cid:374)ge(cid:396) the sole p(cid:396)ope(cid:396)t(cid:455) of a(cid:374) o(cid:449)(cid:374)e(cid:396) o(cid:396) g(cid:396)oup of o(cid:449)(cid:374)e(cid:396)s. We have seen businesses respond to the many expectations it was demanded of and they were willing to change as long as the economic incentive was still present. Individuals that have the power to change the business and are affected by the business are known as stakeholders. The t(cid:396)aditio(cid:374)al no(cid:396)th a(cid:373)e(cid:396)i(cid:272)a(cid:374) (cid:448)ie(cid:449) (cid:449)as that a pu(cid:271)li(cid:272) (cid:272)o(cid:373)pa(cid:374)(cid:455)"s (cid:373)ai(cid:374) ai(cid:373) is to (cid:373)a(cid:454)i(cid:373)ize its profits, the japanese and the europeans accept the idea that businesses have a broader obligation to its stakeholders and shareholders. Stakeholder inclusion is a term which describes that stakeholders should be included in business operations and management. Businesses must address the legitimate expectations and goals of the stakeholders if they want to be successful in the long run. It is also ethical to take into account the stakeholders because they have rights and claims as well.
