Final answer:
It is generally the responsibility of the board of directors to manage stakeholders' power and pressures, as they oversee corporate governance and represent shareholders' interests. However, CEOs and top executives influence the nomination of board members, and auditing firms and large shareholders also contribute to governance.
Step-by-step explanation:
The question asks about the management of stakeholders' power and pressures within a corporate setting, specifically regarding the role of different positions or groups in a company. The board of directors is typically responsible for the corporate governance and oversight of a company, acting as a protective layer for the shareholders' interests. However, the CEO and top executives also play a significant role in corporate governance, as they often have substantial influence in nominating board members. Although shareholders elect the board, in reality, their potential lack of knowledge and incentive to nominate alternative board candidates may limit their direct impact on corporate governance. Additionally, outside institutions such as auditing firms and large shareholders, such as those who manage mutual funds or pension funds, also play a role in corporate governance but were not options provided in the question. The case of Lehman Brothers is an example where corporate governance mechanisms failed to effectively manage and disclose the firm's financial state to investors.