Finding Success with Stakeholder Theory

What is the top priority for shareholder theory?

• Ethical considerations

• Applicable laws

• Shareholders

• Stakeholders

Answer explanation

Focussing on shareholders goes hand in hand with a focus on profits

What is the 2nd priority for shareholder theory?

• Ethical considerations

• Applicable laws

• Shareholders

• Stakeholders

Answer explanation

That's right. While economics is usually king, companies still need to do the legal minimum.

What is the lowest priority for shareholder theory?

• Ethical considerations

• Applicable laws

• Shareholders

• Stakeholders

Answer explanation

Unfortunately, yes.

In the following scenarios which stakeholder is most impacted?

A car manufacturer pays more for the materials provided by companies in the developed world than they do for materials provided by companies in the the developing world.

• suppliers

• shareholders

• community

• employees

• customers

Answer explanation

Absolutely. How would the companies in the developing world feel about this? and, shouldn't a company encourage developing world suppliers?

In the following scenarios which stakeholder is most impacted?

The workforce of a technology company is made up of 90% white males.

• suppliers

• shareholders

• community

• employees

• customers

Answer explanation

Yes. This is an ethical issue that relates to employee diversity.

In the following scenarios which stakeholder is most impacted?

The management team of an investment firm frequently makes high-level decision without consulting board members or disclosing new information to investors.

• suppliers

• shareholders

• community

• employees

• customers

Answer explanation

From an ethical standpoint, companies should b as transparent possible with their shareholders. Remember Enron?

In the following scenarios which stakeholder is most impacted?

A glassworks company just began construction of a new factory. The site is in a quiet suburban area, adjacent to a retirement home and a hospital.

• suppliers

• shareholders

• community

• employees

• customers

Answer explanation

Indeed. The local community will undoubtedly be disrupted b the construction process.

In the following scenarios which stakeholder is most impacted?

A toy manufacturer failed to perform the proper tests before releasing a new set of action figures. Hundreds were rtecalled after traces of lead were discovered.

• suppliers

• shareholders

• community

• employees

• customers

Answer explanation

Right. Product safety is a common issue that impacts customers.