Asked by Hannah Santomassimo on Jul 02, 2024
Verified
Stakeholder theory asserts that while there are other stakeholders in business, the most important is still the shareholder and their needs should take precedence of the needs of other stakeholders.
Stakeholder Theory
A theory of organizational management and business ethics that addresses morals and values in managing an organization, emphasizing the importance of all stakeholders.
- Perceive the variance between the shareholder and stakeholder frameworks in corporate governance.
Verified Answer
NP
Nandish Patel7 days ago
Final Answer :
False
Explanation :
Stakeholder theory posits that all stakeholders of a business, including customers, employees, suppliers, communities, and shareholders, have a legitimate interest and should be considered in business decision-making. The theory does not prioritize the needs of one stakeholder over the others, but instead advocates for a balance of their interests.
Learning Objectives
- Perceive the variance between the shareholder and stakeholder frameworks in corporate governance.
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