Q. Why, according to stakeholder theory, is it in companies' best interests to pay attention to their stakeholders?
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(A)
If firms only act in their own self-interest employees may feel exploited.
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(B)
If firms only act in their own self-interest government might put more regulation on them.
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(C)
If firms only act in their own self-interest customers might not like the image that the company portray.
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(D)
If firms only act in their own self-interest and inflict harm on stakeholders then society might withdraw its support.
✅ Correct Answer: (D)
If firms only act in their own self-interest and inflict harm on stakeholders then society might withdraw its support.