What is the key difference between the agency model and the stakeholder model of corporate governance?

Question

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The Answer is The agency model of corporate governance assumes that the main objective of the firm is to pursueprofit maximization and that shareholders should be given priority in the governance framework.A contrasting view comes from stakeholder theory which argues that firms affect a wider range ofstakeholders such as employees and local community - therefore, the governance framework shouldreflect this.

What Is the Key Difference Between the Agency Model and the Stakeholder