The instrumental argument for the stakeholder theory of the firm says that companies perform better if they consider the rights and concerns of multiple groups in society.

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The instrumental argument for the stakeholder theory of the firm suggests that companies benefit from considering the interests and concerns of multiple stakeholders. By fulfilling the expectations of various groups, companies can enhance their reputation, attract and retain customers and employees, improve community relations, and potentially increase long-term profits. Therefore, the stakeholder approach can be seen as a strategic tool to enhance organizational performance and competitiveness.

The Instrumental Argument for the Stakeholder Theory of the Firm