Stakeholder Identification and Its Importance in the Value Creating System of Stakeholder Work

Abstract

STAKEHOLDER IDENTIFICATION AND ITS IMPORTANCE IN THE VALUE CREATING SYSTEM OF STAKEHOLDER WORK In this chapter we address the importance of stakeholder identification work in value creation. It has been argued that a firm’s creation of value for stakeholders is at the heart of stakeholder theory. Freeman et al. (2010) argue that “to successfully create, trade, and sustain value, a business must engage its stakeholders” (p. 282, emphasis added). But how does one identify the stakeholders that need to be engaged? Here we introduce the idea of stakeholder work (Lee, 2015) as a comprehensive system of value creation, to explain how stakeholder identification work links to value creation through stakeholder engagement.