The assumption underlying the instrumental value of the stakeholder model is that effective stakeholder management should lead to achievement of traditional business goals such as profits and growth.

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The instrumental value of the stakeholder model suggests that by effectively managing stakeholders, a business can improve its financial performance and achieve traditional business goals, such as profits and growth. Therefore, the assumption underlying this model is that stakeholder management is instrumental in achieving these outcomes.

The Assumption Underlying the Instrumental Value of the Stakeholder Model