Stakeholder Management: A Critical Study on the Opportunities and Challenges

Businesses play a pivotal role in job and wealth creation in society and exist not by divine right, but like any other part of society, by the sanction of the community as a whole. A successful business depends on relationships and trust rather than on contract and is at its best when it has clear goals and practical targets. Organisations must develop relationships, inspire their stakeholders, and create communities where everyone strives to give their best to deliver the value the firm promises. A clear understanding of the societal perception of CSR shall enable the companies to design and position their social responsibility activities accordingly.

Corporate Social Responsibility (CSR) is a concept that has attracted worldwide attention and acquired a new resonance in the global economy. It is a concept to run organisations profitably, yet in a social and environmentally responsible way, in order to achieve business sustainability and stakeholder satisfaction.

The “Stakeholder” concept provides a theoretical framework for analysing the relationships of a corporation with relevant constituencies in its industry, as well as its political, social, economic and legal environment.