The concept of shareholder primacy is the idea that a business’s only responsibility is to which stakeholder?

Trailhead Salesforce Module Answers

Understand Sustainable Business – Sustainable Design

Learning Objectives 

  • In the wake of finishing this unit, you’ll have the option to: 
  • Clarify how sustainable business identifies with Relationship Design. 
  • Clarify how the idea of sustainable business has advanced over the long run. 

Characterize partner-free enterprise. 


This module was created as a team with Business for Social Responsibility (BSR). Get familiar with accomplice content on Trailhead. 

We should discuss supportability and business. 

Make Sustainable Business a Goal of Relationship Design 

Business’ meaning could be a little clearer. Supportability in business alludes to the nature of the connection between a business and the general public and the climate where it works. 

In Sustainable Excellence, BSR CEO, Aron Cramer, and creator Zachary Karabell portray sustainable business as “…one that conveys an incentive for financial backers, clients, and representatives; improves the expectations for everyday comforts of its workers and the networks it contacts; utilizes regular assets; and treats individuals reasonably.” 

This implies the sustainable business is lined up with Relationship Design which Salesforce characterizes as “An innovative practice anybody can use to drive business and social worth by building solid associations with their clients, representatives, and networks.” 

This is certainly not a novel thought. Pioneers, financial analysts, and unmistakable masterminds have been attempting to characterize the connection between business and society from the beginning of time. We should take a gander at how social orders have pondered this relationship through time. 

In this unit, we investigate their speculation at key focuses on schedule to give you a sense of what these pioneers saw businesses meaning for society. Furthermore, for how these thoughts drive sustainable business and plan today. We’re not here to give you a set of experiences exercise, however in case you’re intrigued, you can discover a determination of more point-by-point readings in the Resources segment toward the finish of this unit. 

Understand the Relationship Between Business and Society 

As far back as antiquated occasions, the connection among businesses and society was a significant subject. Ruler Hammurabi of Mesopotamia characterized a set of principles for laborers requiring them not to disregard each other’s security while working and fixed a legal compensation for field workers and bull drivers. 

: Stone tablet showing cuneiform writing in the section asking Hammurabi’s implicit rules composed on a stone tablet in cuniform 

During the eighteenth century when the Industrial Revolution was drastically reshaping the job of industry on the planet, the British financial analyst and scholar Adam Smith asserted ethical quality and equity were essentials to a thriving unregulated economy. 

Throughout the long term, the connection among business and laborers, governments, and more extensive society was a wellspring of constant discussion, change, and battle. 

In 1970, the market analyst Milton Friedman distributed a compelling exposition in which he stated that the lone obligation of a business is to expand benefits for its investors. 

This introduced the time of investor power, or investor-free enterprise, that puts a business’ relationship with its investors over any remaining connections. This has been the prevailing administering theory for most businesses for the past 50 years. 

While this way of thinking, and the worldwide monetary development that went with it, sped up the items, administrations, and worldwide business sectors that have improved human wellbeing, expectations for everyday comforts, and correspondences for some individuals on the planet, they’ve likewise included some major disadvantages. 

The resolute accentuation on benefit regardless of anything else has prompted a wide scope of unwanted results—oil slicks, corporate morals embarrassments, monetary emergencies, extending pay imbalance, and the environmental emergency. These difficulties have raised questions about the generally acknowledged creed of investor power. 

A) The concept of shareholder primacy is the idea that a business’s only responsibility is to which stakeholder?

  • I) Shareholders
  • II) The community
  • III) Employees
  •  IV) The environment

B) Which of these concepts claim business should benefit customers, suppliers, employees, communities, and shareholders?

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