Question

Explain what "stakeholder theory" means and identify specific ways in which pressure from stakeholders other than shareholders has influenced corporate governance and reporting practice. Solutions are mere tokenism and fail to address the fundamental problems confronting companies?

Answer 1

Answer:The stakeholders are on the lookout to ensure the firm performs maximally and would want the best decision in place. This is how they influence corporate governance

Explanation:

Stakeholders theory is the theory of organizational management and business ethics that accounts for multiple constituencies impacted by business entities such as employees, local market, creditors, supplies and others. The stakeholders are on the lookout to ensure the firm performs maximally and would want the best decision in place. This is how they influence corporate governance