位置7的问题 Freeman & Elms argue that the purpose of business is to:Minimize riskMaximize profits exclusivelyCreate value for stakeholdersReplace government functions

Question

BlackTom AI · Accepted Answer

Freeman & Elms argue that the purpose of business is to create value for stakeholders. This reflects stakeholder theory, which holds that firms should attend to the legitimate interests of all parties affected by the firm’s activities (shareholders, employees, customers, suppliers, communities, and others), not only to shareholder profit maximization.

1. Relevant knowledge points and concepts
- Stakeholder theory (R. Edward Freeman): businesses have responsibilities to a network of stakeholders; long‑term success depends on creating and balancing value for these groups.
- Value creation: can be financial, social, environmental, reputational, or relational—broadly improving outcomes for stakeholders.
- Contrast: shareholder primacy (e.g., Friedman) focuses on maximizing shareholder profit, while stakeholder theory emphasizes multi‑party value.

2. Step‑by‑step reasoning
- Freeman & Elms promote a normative claim: the firm’s purpose is multifaceted. Start from the premise that a company operates within a system of relationships.
- Because employees, customers, suppliers, communities and owners all affect and are affected by firm actions, the firm’s purpose must be to create value across those relationships.
- This broader purpose enables sustainable performance, legitimacy, and long‑term profitability as a consequence, not the exclusive aim.

3. Calculations
- No numerical calculations apply; reasoning is conceptual and normative.

4. Why the correct answer is correct
- “Create value for stakeholders” directly restates stakeholder theory’s central argument and aligns with Freeman & Elms’ perspective that business responsibilities extend beyond pure profit.

5. Why other options are incorrect
- “Minimize risk”: risk management is a managerial objective and tool, not the fundamental purpose of business per Freeman & Elms.
- “Maximize profits exclusively”: this is shareholder primacy, contrary to stakeholder theory.
- “Replace government functions”: firms may complement public services but are not argued to replace government; that is not the stated purpose.

6. Conclusion
The correct answer, “Create value for stakeholders,” matches Freeman & Elms’ stakeholder‑centered view and is therefore confirmed.

位置7的问题 Freeman & Elms argue that the purpose of business is to:Minimize riskMaximize profits exclusivelyCreate value for stakeholdersReplace government functionsSingle choice

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