1. Some in the business communities believe that stakeholders benefit the society as a whole. The main reason for their views originates from the belief that shareholders are usually concerned about the financial status of the company.
a) To what extent do you agree with the above statement? Justify why you disagree or agree
The above statement is deviant. As a whole, a corporate should be virtuously guided to benefit the society with less selfishness like a person. Neither stakeholders nor shareholders would benefit the society with self-benefit-driven mindsets. A comprehensive supervision mechanism is supposed to be set up for fair and transparent operation while balancing interests of all parties including stakeholders, shareholders, employees and customers. Any over individually concerning system would have potential risk of corruption.
b) Can the interests of shareholders and stakeholders be balanced in a company which is profit driven? Discuss
I think that the interests of shareholders and stakeholders can be balanced to some extent in condition of no man-made manipulation. However, purely profit-driven practice would not necessarily be able to balance the above interests. There is still possibility of being manipulated by some particular group of people for short-term unreasonable benefits considering unpredictable fund injection or mal-operation.
c) Explain why the preference of one over the other might be unsustainable for corporation. Discuss
The preference of one over the other would not sustain the corporation due to potential risk of selfish manipulation for either personal purpose or benefits of small group of people. Imagine the following scenarios: Shareholder’s concerning financial status of the company could miss opportunity of strategic investment when it needs to sacrifice the short-term interests. Meanwhile, stakeholder