What is the main premise of the stakeholder model?

The main premise of the stakeholder model emphasizes that an organization's long-term survival and success depend on its ability to satisfy the needs and interests of multiple stakeholders, not just shareholders. This includes customers, employees, suppliers, the community, and other parties that have a vested interest in the company's operations and outcomes. By addressing the diverse interests of these groups, the organization can build stronger relationships, enhance its reputation, and foster a sustainable business model that leads to continued success over time.

Focusing solely on any one group, such as shareholders, can neglect important obligations to other stakeholders, potentially harming the organization in the long run. This approach recognizes that a company operates within a complex ecosystem, and balancing various stakeholder interests is key to achieving not only profitability but also ethical and responsible business practices.