According to Edward Freeman: “For any business to be successful it has to create value for customers, suppliers, employees, communities, and financiers”. Freeman’s theory states that we have to combine the interests of all of these groups, for a business to have a prosperous and perspective future. Any business is a team, and for it to be successful every team member has to have their interests satisfied in order for them to be productive and effective. If one group is neglected they will lose motivation and focus, therefore affecting the business as a whole: a team can’t function properly if one of its members is disengaged. Customers must want to buy the goods and services, suppliers must make companies better with their creativity and innovation. Employees must want to be at work and contribute to the business, and lastly businesses must value their shareholders and make profit for them. By being sensitive towards people’s needs and interests, a manager could create a great work environment which would draw people in and therefore let the business prosper. I personally support Freeman’s Theory which seems as an intelligent and good approach to managing a company.

Video of Freeman’s Theory: https://www.youtube.com/watch?v=bIRUaLcvPe8

Work Cited:

“Masters Seminars in Business Ethics Video Series: R. Edward Freeman on Stakeholder Theory.” Darden School of Business: University of Virginia: MBA, EMBA, Exec Ed – UVA Darden. Web. 22 Nov. 2011. <http://www.darden.virginia.edu/corporate-ethics/Video_Stakeholder_Theory/transcript_freeman_stakeholders.html>.