| Summary: | Stakeholder management refers to how organizations deal with their shareholders as well as all the
other stakeholders with whom they have dealings or upon whom their operations impact in some way
or another. There are often adverse burdens placed upon organizations by competing stakeholder
demands. There are those who support the traditional shareholder view of maximizing profits at all
costs and who assert that 'the business of business is business' (Friedman, 1970). They also
generally posit the opinion that to support society is a governmental task and that business should not
be distracted by stakeholders who have not contributed to the business growth. Then there are those
who support wider stakeholder inclusivity in the dealings of an organization so as to benefit society
(Freeman, 1984).The aim of this research is to promote the notion of stakeholder management by
showing how the relationship with non-market stakeholders in for example the tourism sector and how
it can be enhanced to the benefit of all.
Theoretical conceptual analytical research was undertaken based on the review of relevant peerreviewed
literature about stakeholders and tourism in rural areas, and web-based relevant materials.
The use of existing literature from a wide range of sources in a multi-disciplinary context, allowed the
researcher to obtain an enhanced understanding of why stakeholder consideration and engagement
is important for all organizations and the tourism sector. The collected information provided the basis
for incorporating why local communities should be considered as important stakeholders of an
organization and conceptualizes how stakeholder theory as a normative notion is critical to
organizational sustainability.
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