Question

What are the " psychic benefits of stockholder participation?

What are the " psychic benefits of stockholder participation?

Homework Answers

Answer #1

Benefits of stockholder participation are:

  • It gives companies a positive public image and improves companies' reputation;
  • It improves the relationship between companies and their stockholders;
  • Build consensus through bringing together a diverse range of stockholders to share needs, information, ideas, and knowledge and harmonize the objectives of individual groups to reach common societal goals
  • Enhance understanding between stockholder groups, thus reducing potential conflicts and promoting effective cooperation
  • Build stakeholders' commitment and a feeling of ownership to enhance the effectiveness of management strategies and individual measures
  • Ensure implementation of management plans with full public support

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