Stakeholder Economy

A stakeholder economy is a social system of production and exchange that is intended to protect the interests of all persons and organizations affected by the [Page 1986]activities of buyers and sellers. A stakeholder economy is organized for the participation of stakeholders in its institutional mechanisms to allocate capital resources, to produce goods and services, and to distribute them in response to demand. Thus, a stakeholder economy is intentionally governed for the interests of broad and diverse segments of society rather than for the more narrow interests of the owners of capital and the holders of wealth.

In North America, the term stakeholder comes from the colonial era when it was the practice for land owners to mark their property by putting stakes in the ground. ...