CEO’s are required to maintain key relationships with many groups of stakeholder

Question

CEO’s are required to maintain key relationships with many groups of stakeholders;

A. One of the most important stakeholders are individuals who offer introductions to key political driven industry lobbyists. Otherwise referred to as “pay to play”

B. Senior level management with board seats are an extremely important group of stake holders that should always place their own benefit ahead of the other stakeholders

C. Shareholders of the company’s stock, who have the right to access management to gain information on the current well-being of the company, providing the information is available simultaneously in the public domain

Explanation / Answer

Answer: Option (C) - Shareholders of the company’s stock, who have the right to access management to gain information on the current well-being of the company, providing the information is available simultaneously in the public domain.

Explanation: An organization’s shareholders of its stock are one of the most important stakeholder for the company. These are the people who have trust and belief in the company’s capabilities and have invested their hard earned money in buying the company’s stock. Therefore, it is the responsibility of the company and it’s CEO to provide all the vital information to its shareholders regarding the company’s financial health, business strategies and future growth prospects. All these information should be made available in the public domain such as company’s website, annual reports, press releases, etc.

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