Theoretical Considerations

Abstract

Stakeholder theory attempts to explain who is involved in business and what potential influence these different stakeholders exert on these businesses, for example mega sport events. These businesses must create value for customers, suppliers, employees, communities and financiers, banks and so forth (Freeman, 2009). The framework argues that no stakeholder can be examined in isolation and that almost each group is important to the success of a business (ibid.; Wearing, 2008, 9). Interests are linked together and the job of a manager or an entrepreneur is to figure out how to align the interests of the different stakeholders (customers, suppliers, employees, communities and financiers) with each other (Freeman, 2009).