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Shareholder Obligations

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How can a company focus on the needs of its stakeholders without neglecting its shareholder obligations?

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This solution explains how companies can focus on the needs of stakeholders without neglecting shareholder obligations.

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We have to look at the main characteristics of the two different groups, in this case. Shareholders are stakeholders, but stakeholders are not all shareholders. The stakeholders outnumber the shareholders. The stakeholders include investors, potential investors, customers, the community, employees, managers, and even the families of the employees. Vendors, creditors, and others are also stakeholders. The shareholders include those who own shares of the company stock, including both employees/managers, and the investors.

Knowing the characteristics of these two groups, we can then ...

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