Stakeholder importance in a corporation
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1 Which two types of stakeholders would you argue to be the most important for the modern corporation and why? How do these types of stakeholders influence corporate finance decisions? Is this an appropriate level of influence for these stakeholder types? Why or why not?
2 In a small, Start-up Company is it more appropriate to govern the investors or to be governed by the investors? Why? In what ways, if any, does this balance shift as the company grows? Why?
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Solution Summary
A look at the value of stakeholders vs shareholders in business.
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The two most important stakeholder groups are the employees first and the customers. Each of these plays a vital role in a business. Without employees, you do not offer a product or service. That said, without customers, you have no one to buy the products or services. These two groups make the business successful and it is their concerns and well being the company should strive to meet. When employees are considered well, their concerns addressed, and their expertise listened to, companies can improve their production and therefore their bottom line. Which then satisfies the board and shareholders. Too often, ...
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