What is the primary difference between a shareholder society and a stakeholder society?

Question

a. A shareholder society has a more long-term focus.
b. A stakeholder society focuses on the welfare of all constituents of a business.
c. A shareholder society provides more protection for workers.
d. A stakeholder society does not allow shareholder wealth maximization.
e. A stakeholder society is found primarily in the U.S., not in Europe or Japan.

Answer 1

The primary difference between a shareholder society and a stakeholder society is:

b. A stakeholder society focuses on the welfare of all constituents of a business.

In a shareholder society, the main priority is often to maximize shareholder value, while in a stakeholder society, the focus extends to considering the interests and welfare of all stakeholders involved, including employees, customers, suppliers, and the community.