Stakeholders in finance

Welcome to our lecture on stakeholders in finance. In the financial landscape, stakeholders are individuals or groups impacted by or who can themselves impact the decisions and actions of an organization. The concept of stakeholders stretches well beyond simply shareholders or owners. Stakeholders encompass everyone with a material interest in a company's operations from employees, customers and suppliers to creditors, local communities, governments, and even future generations. The way a company recognizes, prioritizes and engages with these diverse groups can shape its reputation, financial results, long term sustainability and even its strategic direction. Let's explore primary stakeholders in finance. Shareholders provide capital and expect returns through dividends or capital appreciation. Creditors and lenders like banks and bondholders also play key roles by lending funds and expecting repayment with interest. Employees rely on stable employment and fair pay while customers expect quality goods or services. Suppliers seek prompt payment and continued business. Governments require taxes and regulatory compliance. Communities expect responsible practices. Balancing these often conflicting interests is a crucial challenge for financial decision makers. A central debate in finance is whether a company's main obligation is to maximize shareholder value or to balance the interests of all stakeholders. The shareholder view linked to Milton Friedman argues that