Stakeholders will have different objectives and companies may deal with this by having a range of performance measures to assess the achievement of these objectives. Which of the following statements is true in relation to stakeholders?
A、The aim of all performance measures should be to increase short term profit
B、The only interest of the government is that companies pay their taxes
C、Shareholders will be looking for increasing dividends and increased share price
D、Only internal stakeholders need to be considered by companies
A、The aim of all performance measures should be to increase short term profit
B、The only interest of the government is that companies pay their taxes
C、Shareholders will be looking for increasing dividends and increased share price
D、Only internal stakeholders need to be considered by companies
【参考答案及解析】
It is important that performance measures are set to encourage the long term growth of the company. A focus on short term profit could result in risky and dysfunctional behaviour. The government is also interested in many other aspects including price stability, economic growth and compliance with laws. Companies have a range of stakeholders, all of which can affect the company and should be considered. Some of these stakeholders are external such as the government, the general public and pressure groups.
It is important that performance measures are set to encourage the long term growth of the company. A focus on short term profit could result in risky and dysfunctional behaviour. The government is also interested in many other aspects including price stability, economic growth and compliance with laws. Companies have a range of stakeholders, all of which can affect the company and should be considered. Some of these stakeholders are external such as the government, the general public and pressure groups.