Final answer:
Organizational stakeholders are usually satisfied when their return on investment is maximized. Stakeholders encompass a wide range of individuals and entities, and businesses can benefit many stakeholders by offering better or less expensive products, thereby increasing profits and employee income. The satisfaction of stakeholders extends beyond financial return, covering ethical, safety, and community concerns. Option A.
Step-by-step explanation:
Organizational stakeholders are usually satisfied when their return on investment has been maximized.
Stakeholders include a broad range of individuals and entities affected by a company's operations, such as employees, customers, shareholders, communities, and regulatory agencies.
The term shareholder usually refers to those who have invested capital into a corporation, owning a share of it, and expecting a financial return.
However, a stakeholder may be anyone with an interest in the company - not necessarily financial. Friedman's shareholder theory posits that a firm's primary responsibility is to its shareholders, to increase their wealth.
Whereas, stakeholder theory suggests that a company should balance the interests of all its stakeholders.
This includes considering the overall well-being and interests of everyone who might be affected by the company's actions, which might range from ensuring fair wages to maintaining ethical business practices and contributing to community welfare.
Moreover, businesses are expected to follow certain ethical and safety standards such as those set by OSHA, which emphasizes the company's responsibility to its employees and the community at large.
In a competitive market, when a business offers better or less expensive products, not only do consumers benefit, but the business also increases its profits, and its employees earn more income, which can lead to a net gain for the nation as a whole.
Hence, the right answer is option A.