56.9k views
4 votes
If you were a CEO interested in addressing the needs of many stakeholders in order to maintain a healthy economy, what standards and actions should you establish for your business?

a. Maximize profits for shareholders, minimize wage costs, and increase staffing.
b. Emphasize that you alone can steer the company towards more ethical practices.
c. Buy up public stock so that the company can go private again and run however it wants to.
d. Create value for customers, invest in employees, embrace sustainability.

User Amit Aviv
by
7.4k points

1 Answer

2 votes

Final answer:

As a CEO, adhering to stakeholder theory by creating customer value, investing in employees, and promoting sustainability can balance the interests of all stakeholders and lead to a socially responsible business model. Therefore correct option is D

Step-by-step explanation:

If you were a CEO interested in addressing the needs of many stakeholders to maintain a healthy economy, it would be prudent to create value for customers, invest in employees, embrace sustainability, and balance the interests of various stakeholders including shareholders, employees, customers, and the community. This aligns with the stakeholder theory, contrasting with shareholder primacy which focuses only on maximizing shareholder profits. Under this approach, a business should not only aim to be profitable but also consider the ethical implications and responsibilities that come with running a corporation, such as adhering to the standards of workplace safety established by OSHA, respecting environmental regulations, and contributing to the overall well-being of society.

Adopting such a comprehensive approach may present challenges, especially when considering emerging technologies and their potential social and environmental impact. However, the focus on ethical business practices and stakeholder interests can lead to a more sustainable and socially responsible business model, which, in the long term, can benefit the company, its stakeholders, and society at large.

User Tuyen Nguyen
by
7.7k points