100 – 250 words discussion..
I need support with this Business question so I can learn better.
Quote from Clarkson Principles of Stakeholder Management:
“Owning stock is not riskier than other forms of association with the corporation. Indeed, the possibility of job loss (to employees), product failure (to customers), etc., may be much more significant to the parties involved than the impact of any single corporate bankruptcy on a well-diversified shareowner. But employee and customer risks (like the risks of lenders) arise because the corporation may fail to fulfill its contractual obligations. By contrast, shareowner risks are an inherent feature of their ownership contract. They have agreed to take whatever is left over, or the current market value of whatever is expected to be left over in the future.”
What would Stout agree with in this? What would she disagree with?