Q. Why, according to stakeholder theory, is it in companies' best interests to pay attention to their stakeholders? (Solved)

1. If firms only act in their own self-interest employees may feel exploited.

2. If firms only act in their own self-interest government might put more regulation on them.

3. If firms only act in their own self-interest customers might not like the image that the company portray.

4. If firms only act in their own self-interest and inflict harm on stakeholders then society might withdraw its support.