Identify a feature of the stakeholder model.

Question

Quizplus · Accepted Answer

The feature of the stakeholder model is that no group should enjoy primacy in decision making. This means that all stakeholders, including employees, customers, suppliers, and the community, have an equal voice in determining the direction of the company. This is in contrast to the shareholder model, which holds that the executive team should be legally and morally obligated to work for the owners of a corporation. Option B is incorrect because the stakeholder model does not prioritize financial capital above other inputs. Option D is incorrect because the stakeholder model was not advocated by Professor Adolf Berle, who was a proponent of the shareholder model.

Identify a Feature of the Stakeholder Model