Asked by Matthew Sternola on Mar 10, 2024



According to the stakeholder model of corporate governance, which of the following is not sufficiently affected by corporate actions to deserve consideration in corporate decision-making?

A) Employees
B) Customers and suppliers
C) Shareholders
D) Board members

Stakeholder Model

is a theory of organizational management and business ethics that addresses morals and values in managing an organization, focusing on the interests of all stakeholders.

Corporate Governance

The system of rules, practices, and processes by which a company is directed and controlled, focusing on the balance between the interests of a company's stakeholders, including shareholders, management, customers, suppliers, financiers, government, and the community.

Corporate Decision-Making

The process by which business executives, managers, and other stakeholders make choices that affect the company's operations, objectives, and strategic direction.

  • Comprehend the fundamental concepts of shareholder and stakeholder frameworks of corporate governance.

Verified Answer

Emmanuel Adusei

Mar 10, 2024

Final Answer :
Explanation :
According to the stakeholder model, board members are directly involved in corporate decision-making and therefore do not need to be considered as a separate stakeholder group. Instead, the stakeholder model focuses on the interests of other groups, such as employees, customers, suppliers, and shareholders, who are affected by corporate actions but have less direct control over decision-making.