1. Stakeholder Theory vs. Shareholder Theory

The Stakeholder Theory is defined as having three dimensions. The first dimension is that the stakeholders must contribute valued resources to the firm. The second dimension is how the stakeholders use these resources and the risks involved that could affect the success or failure of the firm and the relationship with that firm if it is terminated. The third dimension deals with the power that the stakeholders have within the firm. While one can be considered a stakeholder by possessing one of these dimensions, it is essential to possess all three dimensions to be considered a true definitive stakeholder. This theory differs from the shareholder theory in that a shareholders primary duty is to maximize returns and deal with no other aspects of the company. Basically advocating profitability by any means necessary bringing in a very moral issue. Many believe the stakeholder theory seems to disregard the interests of the shareholders',......

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Title: Stakeholder Theory
Approximate Word Count: 680
Approximate Pages: 3 (250 words per double-spaced page)

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