Corporations that run their operations according to the stakeholder theory of the firm create value by:
A) Innovating new products.
B) Increasing their stock price.
C) Developing their employees' professional skills.
D) All of the above.

Question

Quizplus · Accepted Answer

The stakeholder theory of the firm asserts that corporations must consider the interests of all stakeholders, including customers, employees, suppliers, and the community in which they operate, in addition to shareholders, when making business decisions. By doing so, these corporations can create value in multiple ways, including by innovating new products that meet the needs of their customers, increasing their stock price by satisfying the expectations of shareholders for sustainable growth and profitability, and developing their employees' skills and capabilities, which can result in higher productivity and retention rates. Therefore, all of the above options are correct.

Corporations That Run Their Operations According to the Stakeholder Theory