Stakeholder capitalism is an economic system in which corporations seek to improve the lives of their stakeholders—employees, customers, suppliers, communities, and the environment. This system works by taking a holistic approach to profitability, recognizing that sustainable economic growth depends on investing in and developing relationships with stakeholders. This system encourages businesses to be responsible to their employees and the communities in which they operate, as well as to the environment. Companies must create value for all stakeholders, not just shareholders or owners. Stakeholder capitalism has become increasingly popular in recent years due to its focus on creating sustainable value and businesses with a longer-term view of success.