Final answer:
The first law of business in seeking competitive advantage is to take care of the customer. Modern business approaches recognize the value of all stakeholders, including customers, employees, and the wider community, beyond just shareholder profits.
Step-by-step explanation:
The direct answer to the question 'In seeking competitive advantage, the first law of business is to' is: C. take care of the customer.An explanation for this is that while shareholder theory posits that the primary duty of a company's executives is to serve the interests of the shareholders, the stakeholder theory broadens this responsibility to include various parties who have a stake in the company. This includes not only shareholders but also employees, customers, suppliers, communities, and others who might be affected by the company's actions.
There has been a shift from the traditional view of shareholder primacy towards a more holistic stakeholder approach in contemporary business practices. This shift recognizes that nurturing customer relationships, ensuring employee satisfaction, and taking care of other stakeholder interests can lead not only to ethical and sustainable business practices but also to long-term profitability and competitive advantage as these stakeholders are integral to the business's success.