A manager who primarily focuses on the shareholders of the corporation rather than all of the vested parties in the businesses operations and activities is practicing which theory of normative business ethics?
A) Stakeholder theory
B) Investor theory
C) Stockholder theory
D) Shareholder theory
E) Social contract theory

Question

Quizplus · Accepted Answer

Stockholder theory primarily focuses on maximizing the value of the corporation for its shareholders, rather than considering the needs and interests of all parties involved in the business. This can include ignoring the impact on employees, customers, and the environment in favor of increasing profits for shareholders.

A Manager Who Primarily Focuses on the Shareholders of the Corporation