Question

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.

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Answer 1

Answer:

D

Explanation:

All of the above statements are true

Answer 2

The statement " 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 " is correct regarding stakeholder management.

Importance of stakeholders:

• The importance of stakeholders' values necessitates achieving the best possible return for all stakeholders in an organisation.
• Customers, shareholders, employees, customers, local communities, as well as suppliers are the most important stakeholders for a business to consider.
• Stakeholders may have control over or be influenced by the company's actions, preferences, and policies.
• The importance given to all of the company and its shareholders is thus the stakeholder's interest.
• This is central to the Stakeholder Value Perspective, in which social justice is just a company concern that is best addressed by organisations seeking shared goals as well as economic symbiosis in society.