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There are different ways to consider who and what are stakeholders in both an association and an association’s projects. The “shareholder theory,” placed in the mid twentieth century by economist Milton Friedman, says that an organization is obligated just to shareholders – that is, the organization must make a benefit for its shareholders.
Stakeholder theory was first described by Dr. F. Edward Freeman, a teacher at the University of Virginia, in his point of landmark book, “Strategic Management: A Stakeholder Approach.” It proposes that investors are just one of numerous partners in an organization. The partner biological system, this hypothesis says, includes anybody put and associated with, or influenced by, the organization: workers, environmentalists close to the organization’s plants, sellers, legislative offices, and then some. Freeman’s hypothesis recommends that an organization’s genuine achievement lies in fulfilling every one of its partners, not simply the individuals who may benefit from its stock.
Stakeholder theory replaces the term profit with the term value. Profit is a measurement in currency while value might be measured in all sort of ways. Businesses can’t exist in a vacuum, it requires that there be investors to give them money, customers to buy their goods, employees to serve the customers, suppliers to sell them the goods that they will sell, and a community within which they can thrive.

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