Friedman mentions that those who hold the belief that said business is only responsible for those who own stock in the business, (the owners, or stockholders). He believes stakeholders should not spend the stockholders' money on social responsibility. Profits are a critical feature for all businesses, but should not be the only driver of success. With corporations relying on society's standards into shaping their business culture today, Freeman's theory seems more appealing. I believe in Freeman's theory that a business has the responsibility to satisfy multiple stakeholders. The stakeholders will have a long-term positive effect on the company because not only do you need profit to succeed but also value creation. Without stakeholders using resources to engage in activities, this may affect the reputation of the company, resulting in a loss of profits over time. Contributing a fair amount of profit to society will lead to a better reputation and increased profit in the long run.

Today, more and more companies choose the stakeholder model to strengthen the relationship between the business and its customers, employees, suppliers, investors, communities, and others who have a stake in the organization. Corporate social responsibility is practiced in many top companies as employees are seeking a comfortable working environment. Millennials and Gen Z believe that corporations should be more invested in finding solutions to improve the world instead of just focusing on profit. Knowing that a company uses CSR in its practices can attract motivated employees who will provide more value to the company's culture. It is important to involve stakeholders in decision-making processes as they may have the expertise and knowledge that the shareholders are lacking. In addition, customers are highly valued as they expect a company to care about them as they have helped them stay profitable over time. Freeman's stakeholder theory is very important to implement in any business as stakeholders can provide value in all different areas. Keeping the stakeholders engaged will definitely create long-term sustainability, build better relationships and organization, and empower others.

Do you agree with the point made in the above paragraph?

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