What Is Meant by a Balanced Stakeholder Approach

question 12

Multiple Choice

What is meant by a balanced stakeholder approach?

• A) Aiming to involve creditors, customers, employees, shareholders and society in general in decision making.
• B) Ensuring that a company has a wide spread of investors.
• C) Aiming to satisfy the needs of creditors, customers, employees, shareholders and society in general.
• D) Ensuring that investors spread their risk in a balanced way.

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Definitions:

Insurance Payouts

Refers to the money that insurance companies pay to policyholders or beneficiaries when a claim is made and approved under the terms of an insurance policy.

Government Bailouts

Financial assistance given by a government to a failing business or sector, intended to prevent widespread economic disruption.

Negative Externalities

Costs suffered by a third party as a result of an economic transaction, which are not reflected in the transaction's market price.