Final answer:
Human Resources is primarily concerned with a variety of stakeholders, including employees, customers, and the community. They manage policies to balance their interests, focusing on workplace safety, equal opportunities, and training and development to serve the wider goals of the organization beyond shareholder returns.
Step-by-step explanation:
Human Resources (HR) is primarily concerned about various stakeholders within and outside a company. Unlike the narrower focus on shareholders, which pertains to individuals who have invested capital in a corporation, stakeholders encompass a broader group. They include employees, customers, communities, and anyone else who may be affected by the company's operations. HR's role is to manage and develop policies that serve the interests of these stakeholders, ensuring workplace safety, providing equal opportunity programs, and overseeing security management.
Stakeholder theory presents a contrasting view of shareholder primacy. It suggests that a company's managers should balance the interests of all stakeholders rather than focusing solely on shareholders' returns. This approach takes into account the ethical and social responsibilities of a corporation beyond just profit-making. In managing human capital, HR plays a pivotal role in recruitment, training, and development, potentially reducing bias in hiring and fostering an inclusive workplace. Furthermore, HR professionals contribute to instituting workplace safety standards and creating safety protocols to prevent workplace injuries.