Corp. Relationship with Stakeholders
Examines needs of shareholders, employees, customers, creditors, vendors & communities, & related ethical & practical responsibilities of managers.
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Traditionally, managers are responsible to a company’s board of directors, and the board of directors are responsible to the shareholders. This has resulted in a bias among managers toward returning value to shareholders to the exclusion, or at least detriment, of others who have an interest in a company’s performance. In recent years, companies have begun to recognize that shareholders constitute only one group of people with an interest in not only the so-called bottom line performance, but also in how a company conducts business. Employees, vendors, customers and the communities in which companies operate have all succeeded in having their voices heard (to some degree) at various companies, which has resulted in a new term to describe these groups: stakeholders. This research examines the question of how much responsibility…