Final answer:
The development of a firm's mission typically involves the CEO and top managers. It's a collaborative process that aligns the firm's strategic direction with stakeholder interests, including the board of directors' role influenced by top executives.
Step-by-step explanation:
The development of a firm's mission typically involves the CEO and top managers. The process is collaborative because it requires a clear understanding of the firm's purpose, values, and strategic direction, which generally reflects the interests of various stakeholders, including shareholders. The input from the CEO is crucial as they are the top leader, but top managers often have valuable insights and a strong voice in shaping the mission due to their involvement in daily operations and strategic planning.
The involvement of the board of directors is also noteworthy. Although the board is meant to operate in the shareholders' interests, top executives frequently influence the selection of board members. As the company grows and information about its operations becomes more available, the need to know the managers on a personal level decreases, allowing other investors to provide financial capital based on more objective company data.