One key proposition of the stakeholder view of the firm is that a firm must pursue only the economic bottom line such as profits and shareholder returns.

Question

Quizplus · Accepted Answer

According to the stakeholder view of the firm, a firm has a responsibility to consider the interests of all stakeholders, not just shareholders. This includes employees, customers, suppliers, communities, and the environment. The pursuit of only economic bottom line such as profits and shareholder returns may not be in the best interest of all stakeholders and could lead to negative consequences in the long run.

One Key Proposition of the Stakeholder View of the Firm