Stakeholder Theory
A theory of organizational management and ethics that addresses morals and values in decision-making, particularly at the management level, and address the principle of who or what really counts.
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Origin
Developed by business ethicist R. Edward Freeman in his landmark 1984 book Strategic Management: A Stakeholder Approach, published by Cambridge University Press. Freeman defined a stakeholder as any group or individual "who can affect or is affected by" the organization's success, challenging the shareholder-centric view of corporate responsibility. The theory represented a major shift in thinking about business relationships and organizational ethics.
Updated February 22, 2026