Corporations who 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 holds that a business should operate in a way that benefits all of its stakeholders, including employees, customers, suppliers, and the community, not just its shareholders. By innovating new products, a business can create value for customers and increase revenue. By increasing their stock price, a business can benefit shareholders. Developing employees' professional skills can benefit both the employees themselves and the business as a whole by improving productivity and capability. Therefore, all of the above options can create value for stakeholders and are important in the stakeholder theory of the firm.

Corporations Who Run Their Operations According to the Stakeholder Theory