Question

1. Which of the following statements are correct regarding stakeholder management? a. Stakeholder management strives for creating value for the stockholders by maximizing the returns received by them. b. Stakeholder management strives for creating value for all the stakeholders of the business firm that are affected directly or indirectly by its business activities. c. Stakeholder management strives for creating value for the stakeholders that would critically get affected by its decisions or would impact its business. d. All of the above statements are true.

Answer 1

c. Stakeholder management strives for creating value for the stakeholders that would critically get affected by its decisions or would impact its business.

Answer 2

b. Stakeholder management strives for creating value for all the stakeholders of the business firm that are affected directly or indirectly by its business activities.

Explanation:

• The importance of stakeholders value requires achieving the optimum return level for all stakeholders of an organization. Customers, investors, employees, customers, local communities and suppliers are the key stakeholders a company should consider. Stakeholders may control or be influenced by the actions, priorities, and policies of the company.
• The interest of the stakeholder is therefore the importance given to all the stakeholders of the company. This is fundamental to the Stakeholder Value Perspective, where social justice is a corporate concern and, in reality, it is better addressed by organizations seeking shared goals and economic symbiosis in society.