Which theory of business social responsibility holds that a business owes duties to its various constituencies such as customers and employees in addition to its shareholders?

Question

Quizplus · Accepted Answer

The stakeholder interest theory posits that a business has responsibilities to not just its shareholders, but also to its various stakeholders, including customers, employees, suppliers, and the wider community. Therefore, C is the correct option. The moral minimum theory holds that businesses have only the minimum obligation to meet legal requirements, while the maximizing profits theory states that businesses should focus solely on maximizing profits for shareholders. The moral maximum theory holds that businesses should strive to do the most good for all stakeholders, even at the expense of profits. Corporate citizenship theory is similar to stakeholder interest theory, positing that businesses have social and environmental responsibilities as well.

Which Theory of Business Social Responsibility Holds That a Business