GMGT 1010 (Business and
Society) EXAM REVIEW FOR
QUIZ 3 LECTURE NOTES FALL
SERIES PROF SEAN B
UNIVERSITY OF MANITOBA.
, Quiz 3
Stakeholder vs Shareholder Debate
Categorizing stakeholders
Primary Stakeholders (Market)
Stakeholders that engage in economic transactions with a company
Customers, Employees, Shareholders, Suppliers, Customers
Secondary Stakeholders (Non-Market)
Stakeholders that do not engage in economic transactions but can still affect and be
affected by a company’s actions
Communities, Government, Media, NGOs
The shareholders and stakeholder view in comparison
Shareholder view
Shareholders advance capital to a company's managers, who are supposed to spend
corporate funds in ways that have been authorized by the shareholders, in other words
maximize profits
Stakeholder view
Managers have a duty to both the corporations shareholders and individuals that
contribute to wealth creating capacity
Why is Shareholder valued more in the US or Canada?
Assertion 1 : it's what we are taught
Neoclassical economics, business school curriculum, accounting and finance
However, many managers view their role is to satisfy customer and employee interests
as well as shareholder interests as their mandate
Society) EXAM REVIEW FOR
QUIZ 3 LECTURE NOTES FALL
SERIES PROF SEAN B
UNIVERSITY OF MANITOBA.
, Quiz 3
Stakeholder vs Shareholder Debate
Categorizing stakeholders
Primary Stakeholders (Market)
Stakeholders that engage in economic transactions with a company
Customers, Employees, Shareholders, Suppliers, Customers
Secondary Stakeholders (Non-Market)
Stakeholders that do not engage in economic transactions but can still affect and be
affected by a company’s actions
Communities, Government, Media, NGOs
The shareholders and stakeholder view in comparison
Shareholder view
Shareholders advance capital to a company's managers, who are supposed to spend
corporate funds in ways that have been authorized by the shareholders, in other words
maximize profits
Stakeholder view
Managers have a duty to both the corporations shareholders and individuals that
contribute to wealth creating capacity
Why is Shareholder valued more in the US or Canada?
Assertion 1 : it's what we are taught
Neoclassical economics, business school curriculum, accounting and finance
However, many managers view their role is to satisfy customer and employee interests
as well as shareholder interests as their mandate
