Analyse one reason why a business might have lower profits by meeting stakeholder aims

One reason why a business might have lower profits by meeting stakeholder aims is if the business prioritizes the interests of stakeholders over maximizing profits. This can happen when a business focuses on social or environmental goals, such as reducing carbon emissions or improving employee welfare, which may require significant investments or changes in operations. These actions can lead to increased costs for the business, reducing its profitability in the short term. However, by meeting stakeholder aims, the business can build a positive reputation and gain long-term benefits, such as increased customer loyalty and improved employee morale, which can ultimately contribute to higher profits in the future.