Topic > Freeman's Stakeholder Theory of Social Society...

These companies would follow Freeman's stakeholder theory. Njite, Hancer, and Slevitch (2011) believed that leaders have the power to influence workers' attitudes and the ability to create a work and social climate to increase morale (cited by Rodríguez Bolívar, Garde Sánchez & López Hernández, 2014). Being altruistic means being able to care about the well-being of everyone in the organization and ensuring that they will be able to give back to the community. Freeman's theory emphasizes moving beyond profit maximization and focuses on what benefits stakeholders, not just shareholders (Lindorff and Peck, 2010). The Economist Intelligence Unit (2005) states that companies that emphasize corporate social responsibility are known to have healthier long-term financial health.