Final answer:
Stakeholders in Pendleton Willard Asset Management as explained to Jerome Stanford include employees, clients, and shareholders. Stakeholders have various interests in the firm, ranging from labour and expertise to financial investments and trust in services. Option (a,b,c) is correct.
Step-by-step explanation:
When Jerome Stanford joined Pendleton Willard Asset Management as a fund manager, he was informed about the high ethical standards and responsibilities towards all the firm's stakeholders. The term stakeholders encompass a broader category than shareholders; it refers to any group or individual that has an interest in or is impacted by the company's activities. These include not only shareholders, who are the owners of parts of the corporation and invested capital for a potential return, but also employees, who contribute to the company's operations and culture, and clients, who depend on the firm's integrity and performance for their financial security.
The conversation between Jerome and his supervisor emphasizes stakeholder theory, which contrasts with the idea of shareholder primacy. The stakeholder theory suggests that company managers should balance the needs and interests of various stakeholders, rather than focusing solely on the financial return to shareholders. Employees are a critical group as they are directly involved in delivering the company's outcomes and can be affected by corporate decisions, while clients are also pivotal as they entrust their resources and trust to the firm's services.
Given this broad definition, stakeholders of Pendleton Willard Asset Management would certainly include employees, for their investment of labor and expertise, clients, for their financial involvement and reliance on the firm's services, and shareholders, including both individuals and institutions that own shares in the firm, all of whom have a vested interest in the firm's financial success and ethical conduct.