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Stakeholders vs stockholders

1. Why is it important to move from a narrow perspective of decisions affecting stockholders, to decisions affecting stakeholders? Illustrate with an example.

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The importance of stockholders is based upon how much they are willing to invest in a company through stock purchases. While this is important to provide cash flow for the company, people now perceive the importance of taking care of workers, ...

Solution Summary

A discussion why the broader view of stakeholder interests in decision making is appropriate.