Starling Inc. is a public stock company that provides natural gas for businesses. Although this company generates a large profit, management's focus on reducing costs caused the maintenance budget to be trimmed. Its pipelines have at times leaked, which created significant environmental problems. As a result, the company's value creation has suffered. This scenario supports Michael Porter's warning that public companies
A. have defined value creation too narrowly in terms of financial performance, thereby contributing to black swan events.
B. have defined value creation too narrowly and as a result have ignored political lobbying, thereby contributing to black swan events.
C. often do not keep economic needs and societal needs separate from each other, thereby contributing to low value creation.
D. do not focus enough on increasing firm profits, thereby contributing to low value creation.
Answer: A
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