Asked by MINHAAZ BEGUM on Sep 26, 2024
Verified
More information would be shared with employees and their representatives under a shareholder model than under a stakeholder model of company action.
Shareholder Model
A corporate governance framework where the interests of shareholders are the primary focus of company management.
Stakeholder Model
A framework in business and ethics that emphasizes considering the interests and impacts on all affected parties (stakeholders) rather than solely focusing on shareholders.
- Appreciate the contrast between corporate governance models focusing on shareholders versus stakeholders.
Verified Answer
VL
Vanessa Lopez2 days ago
Final Answer :
False
Explanation :
Under a stakeholder model, a company considers the interests of all its stakeholders, including employees, customers, suppliers, and the community, not just its shareholders. Therefore, it is more likely to share information broadly with all stakeholders, including employees and their representatives, than under a shareholder model, which primarily focuses on the interests of its shareholders.
Learning Objectives
- Appreciate the contrast between corporate governance models focusing on shareholders versus stakeholders.
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