Ace the 2025 Revised Corporation Code Challenge – Unleash Your Corporate Superpowers!

Question: 1 / 400

What aspect of corporate governance focuses on balancing interests among different stakeholders?

Shareholder activism

Corporate social responsibility

Stakeholder engagement

The focus on balancing interests among different stakeholders is best captured by stakeholder engagement. This aspect of corporate governance emphasizes the importance of interacting with and understanding the needs and expectations of various parties involved with or affected by the corporation, such as shareholders, employees, customers, suppliers, and the broader community. Stakeholder engagement ensures that all voices are heard and considered in decision-making processes, thereby fostering a more inclusive approach to governance.

In contrast, shareholder activism primarily centers on the actions and movements from shareholders seeking to influence corporate behaviors or decisions primarily in their own interests. Corporate social responsibility, while concerned with the ethical obligations of a corporation toward society, does not inherently focus on the multi-faceted balancing of interests among all stakeholders. Corporate compliance pertains to adhering to laws and regulations, which, while vital, does not encapsulate the broader concept of stakeholder interest balancing that stakeholder engagement actively promotes.

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Corporate compliance

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