Despite its shortcomings,a compelling argument in favor of the stakeholder model is that:
A) it isolates business from the broader society and defines the duties of a business as one of profit making.
B) it has distinguished proponents like Adam Smith and Karl Marx.
C) it clearly distinguishes between primary and secondary stakeholders making it easier for a corporation to satisfy each of them.
D) it is the ethical way to manage because stakeholders have moral rights that grow from the way powerful corporations affect them.

Question

Quizplus · Accepted Answer

The argument in favor of the stakeholder model is that it is the ethical way to manage because stakeholders have moral rights that grow from the way powerful corporations affect them. This means that businesses have a moral obligation to consider the impact of their actions on all stakeholders, not just shareholders, in order to act ethically and responsibly. This approach emphasizes the importance of corporate social responsibility and can lead to long-term success for businesses as they foster positive relationships with customers, employees, suppliers, and the community.

Despite Its Shortcomings,a Compelling Argument in Favor of the Stakeholder