Stakeholder engagement

Definition

The process of involving and communicating with all parties who have an interest in or are affected by an organization's decisions and activities.

Etymology

The term 'stakeholder' was coined in the 1960s at Stanford Research Institute as a play on 'stockholder,' expanding the concept beyond shareholders to include all parties with a 'stake' in an organization. 'Engagement' in this context evolved from military terminology meaning to enter into conflict, later softening to mean active participation.

Kelly Says

This phrase represents a fundamental shift in business thinking from shareholder primacy to a more inclusive model of corporate responsibility. However, it's often criticized as corporate speak that sounds inclusive while potentially diluting accountability by trying to please too many different interests.

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