CFA Level I · CFA Level I Exam · Investors and Other Stakeholders
Which of the following stakeholder relationships is most likely classified as a contractual relationship in the stakeholder management framework?
A supplier under a supply agreement holds a contractual relationship with the firm, as do employees, customers and creditors. A community or a regulator has an interest or authority over the firm without a direct contract, so they are not contractual stakeholders.
- AA local community affected by the firm's noise
- BA supplier bound by a supply agreement with the firmCorrect
- CA regulator overseeing the firm's industry
Explanation
Suppliers with agreements, like employees, customers and creditors, have explicit contracts with the firm. Communities and regulators have interests or authority without a direct contract with the firm.
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