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How does stakeholder emphasis of the creation of stakeholder value differ from the economic model? PLS...

How does stakeholder emphasis of the creation of stakeholder value differ from the economic model? PLS type

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Answer #1

The economic model of Stakeholder value approach states that maximisation of stakeholders equity as the highest objective where it aims to increase the equity through the increase in the firm earning, improving market value of the product, increase in the dividend paid etc. However it differs from the Stakeholders emphasis in such a way where the Stakeholder focuses of the forecast of a particular equity share and in this regard, he can also get to forecast with certain assumptions which might not be valid in all cases on the whole.

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