Final answer:
The essential concept behind the stakeholder theory is to balance the interests of all stakeholders, including shareholders, employees, customers, suppliers, and the community.
Step-by-step explanation:
The essential concept behind the stakeholder theory is that managers should seek to 'balance' the interests of all stakeholders, which includes anyone who has a 'stake,' or interest, in the firm. Stakeholders can include shareholders, employees, customers, suppliers, and the community. Unlike the shareholder primacy theory, which focuses solely on maximizing shareholder value, stakeholder theory advocates using corporate revenue in the interests of all stakeholders.