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But in either case, the claims on corporate conscience are considerably greater than the imperatives of maximizing financial return to stockholders.
Stakeholder theories have grown in number and type since the term stakeholder was first coined in 1963. According to R. Edward Freeman, whose work in stakeholder theory is well known, the stakeholder concept was originally defined as including "those groups without whose support the organization would cease to exist." As a part of management theory and practice, stakeholder theory takes a number of forms. Descriptively, some research on stakeholder theory assumes that managers who wish to maximize their firm's potential will take broader stakeholder interests into account...
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