Final answer:
In discussions of corporate responsibilities for sustainable development, it is essential to view future generations as key stakeholders, as they will inherit the consequences of the firm's actions today. Stakeholder theory advocates balancing the interests of all stakeholders, expanding beyond the shareholder primacy focus on maximizing immediate profits.
Step-by-step explanation:
When discussing how a firm can better fulfill its obligations for sustainable development, it is important to consider stakeholders beyond traditional shareholders, including future generations. This broader stakeholder group encompasses not only investors and customers but also employees, communities, and the environment. The stakeholder theory suggests that managers should balance the interests of all stakeholders, unlike the shareholder primacy view which emphasizes maximizing shareholder wealth.
The debate between shareholder primacy and stakeholder theory is critical when addressing corporate responsibility and sustainable development. As sustainability concerns the long-term viability and health of both human society and the planet, future generations stand as pivotal stakeholders. They hold a moral stake in the business's operations since their well-being will be directly impacted by today's corporate decisions.
Moreover, to achieve this balance, it's necessary to consider how current business practices will affect the quality of life and available resources for people who will live in the future, aligning business strategies with environmental stewardship and community development.