Stakeholder Theory

Definition: Stakeholder theory is about how “the purpose of a business [or organization] is to create as much value as possible for stakeholders”. Stakeholders are people with an interest or concern in something. In business, this could mean keeping the interests of “customers, suppliers, employees, communities, and shareholders aligned and going in the same direction”.

Apply: Stakeholder theory focuses on creating a cooperative environment where the interests of everyone involved are valued without a level of hierarchy. This is important to community development because when you are working within a group, all perspectives and interests need to be valued and taken into account. In order for the development to be effective, there needs to be a shared interest and outcome to ensure that no one is being harmed or left out. It also shows that you value group member’s opinions and that they hold expertise within the development process.

Adapt: When working within a school, if a student is struggling academically or behaviorally, intervention decisions made for this student are made with multiple stakeholders. These stakeholders include the student, the school social worker, the student’s teacher(s), and the student’s parents. This ensures that everyone is on board and is able to implement the intervention strategies when they are working with the student.

Source: Stakeholder Theory. (2015). Retrieved October 26, 2015, from http://www.stakeholdermap.com/stakeholder-theory.html