The stakeholder capitalism model assumes that only systematic risk "counts" or is a prime concern for management.

Question

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The stakeholder capitalism model considers both systematic and non-systematic risk as key concerns for management. In this model, companies are responsible not only to their shareholders but also to other stakeholders such as employees, customers, suppliers, and the community. Thus, the management focuses on creating value for all stakeholders and managing risks that may affect them. Non-systematic risks like reputation risk, regulatory risk, and operational risk are also important considerations for management in the stakeholder capitalism model.

The Stakeholder Capitalism Model Assumes That Only Systematic Risk "Counts