consider them in a varied manner since their contribution to the mission and goals of the firm also differ. The normative approach explains the interest of all stakeholders to be of equal values in an ethical manner. However, handling all those claims equitably could be very expensive and uneconomical. Shareholders and the managerial sector might be interested in profits which generally is the goal of the business. Contrary, the customers’ expectations on pricing might be different a thing that would affect the profitability. Therefore the importance of claims will always vary that way since there is also preferences and choices which does not eliminate any option. In an example, Ford Company faced a negative reaction following the production of Edsel series of cars which targeted the high-income markets. Its concentration on customers with sedentary lifestyles ended up as a failure since it was not recognized. The company failed the other stakeholders such as the suppliers, employees and investors. The customers' priority was legit and ethical though the variance that exists between all interests brought the sense of managing stakeholders interests.
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- Summer '18
- Brett Gordon
- Business, scale enterprises