In strategic management, who are considered key stakeholders?

The concept of key stakeholders in strategic management encompasses a broad range of individuals and groups who are affected by or can affect an organization's decisions and actions. This includes not just company executives and shareholders, but also employees, customers, suppliers, local communities, and even governmental agencies. Recognizing anyone affected by organizational decisions as stakeholders reflects the comprehensive nature of stakeholder theory, which emphasizes the interconnectedness and mutual influences between a company and its various constituencies.

This perspective is essential because it allows organizations to consider the implications of their strategies on all parties involved, leading to more sustainable and responsible business practices. By taking into account the needs and concerns of all stakeholders, organizations can foster better relationships, improve their reputation, and ensure long-term success. Focusing narrowly on just company executives, shareholders, or specific groups like customers and suppliers would miss the broader impact of strategic decisions and could lead to conflicts or disengagement among other important stakeholders.