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It is important for a business to balance the interest of its various stakeholders. Different stakeholder groups have different priorities, for example:
- Shareholders expect the business to make a profit and receive a return on their investment.
- Employees require good working conditions if they are to be retained.
- Investors may want to see evidence of how a company responds to environmental issues before committing money to the business.
Because of the agency problem , not easy to achieve the risk management goals.
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