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Stakeholder theory has always been considered a useful and powerful tool for guiding the management strategy and decision-making of a firm.
It helps managers think broadly and systematically about the interests of the company’s stakeholders, and the ways in which these interests affect the long term success of the firm.
It helps in adopting strategies that are beneficial for all the stakeholders of the company.
In the recent times, the concept of corporate social responsibility has gained a lot of popularity.
This is because of the fact that nowadays, firms are realizing that in order to achieve long term success, they need to be socially responsible.
Stakeholder theory is a useful tool for ensuring that the firms are socially responsible.
It helps in adoption of socially responsible strategies which are beneficial for society in general.