Firms that do not consider the impact of their decisions on all of their stakeholders see reduced sales and profits.

Question

Quizplus · Accepted Answer

Firms that only focus on their own self-interest and do not take into account the impact of their decisions on other stakeholders such as employees, customers, suppliers, and the community, may face negative consequences such as reduced sales, decreased profits, and damage to their reputation. On the other hand, firms that actively consider their impact on all stakeholders are more likely to gain greater customer loyalty, stronger relationships with suppliers, and a better reputation, leading to increased sales and profits.

Firms That Do Not Consider the Impact of Their Decisions