Explanation – Stakeholder Capitalism is a model of corporate governance where companies are oriented to serve the interests of all their stakeholders, not just their shareholders. This approach recognizes that businesses have responsibilities beyond generating profits for investors. It is a system where corporations are oriented to serve the interests of all their stakeholders, including customers, suppliers, employees, shareholders, and local communities. Under Stakeholder Capitalism, companies strive to create value for all these groups, balancing financial success with social responsibility and ethical considerations. This approach contrasts with the traditional Shareholder Primacy model, which focuses primarily on maximizing shareholder value.

Source: The Hindu