Final answer:
The stakeholder concept is a business framework that recognizes the complex environment where a firm operates and its impacts on and from various stakeholders, contrasting the shareholder primacy focus.
Step-by-step explanation:
The concept that proposes that an organization operates within a complex environment where it affects and is affected by a variety of forces or stakeholders is known as the stakeholder concept. Unlike the shareholder concept which emphasizes shareholder primacy and dictates that the firm's managers should act solely in the interests of shareholders, the stakeholder concept recognizes that there are multiple parties involved, all of whom share in the value of the organization and its activities. These parties include employees, customers, suppliers, communities, and any other individuals or groups who may have a stake in the business's operations.
According to stakeholder theory, it is the responsibility of managers to balance the interests of all stakeholders, not just to increase the wealth of shareholders. This approach acknowledges the complex interdependence among the different stakeholders and the idea that corporations should consider the broader impact of their actions on society and the environment.