Which of the following statements is true of stakeholders and ethics?
A) Customers are often regarded as the least important stakeholder group.
B) Communities, societies, and nations are independent of the effects of the decisions made by companies.
C) The failure of a company can have catastrophic effects on a community since a general decline in business activity can affect a whole nation.
D) The results of ethical behavior are loss of reputation and resources, and skilled managers and employees leaving the company.
E) When making business decisions, managers must exclusively consider the claims of stockholders.

Question

Quizplus · Accepted Answer

The failure of a company can indeed have catastrophic effects on a community, as it can lead to a decline in business activity that can affect the entire nation. This underscores the importance of considering the impact of decisions on all stakeholders, not just stockholders, when making business decisions. Options A, B, D, and E are all incorrect because they either make inaccurate or incomplete statements about stakeholders or ethics, or suggest that certain stakeholders are more important than others.

Which of the Following Statements Is True of Stakeholders and Ethics