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Abstract
A stakeholder is any person or entity who has a considerable interest in the success or failure of a business. Stakeholder’s theory takes a broad view and points out that the managers of business must take into account the needs of all its stakeholders. It defines companies as multilateral agreements between the enterprise and its multiple stakeholders. These stakeholders may be internal viz. shareholders (owners), employees, managers or external viz. customers, investors, creditors, suppliers, government, special interest groups and the local community at large. Thus, it becomes inevitable for a business to take care of its multiple stakeholders in order to achieve success in the long-run. While an organisation lays extreme emphasis on its external stakeholders, it may sometimes become negligent towards one of its most important internal stakeholder, i.e. the employee.