Which of the following is an example of stakeholder interest theory?

Question

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Stakeholder interest theory suggests that a company should consider the interests of all its stakeholders, including employees, in its decision-making process. In this example, the company is prioritizing the well-being of its employees by continuing operations in an unprofitable factory rather than shutting it down and laying off workers.

Answer: B
 This is an example of environmental concern, where the company is addressing the complaints of local residents about the impact of its operations on the environment. While it is not directly related to stakeholder interest theory, it does show how companies can take into account the concerns of their stakeholders in their decision-making process.

Answer: C
 This is an example of shareholder primacy theory, which suggests that a company should prioritize the interests of its shareholders over other stakeholders. By increasing the price of its products to maximize profits for shareholders, the company is not taking into account the impact on other stakeholders, such as customers or employees.

Answer: D
 This is an example of corporate social responsibility, where the company is using a portion of its profits to benefit society as a whole. While it is not directly related to stakeholder interest theory, it does show how companies can take into account the interests of the wider community and not just their immediate stakeholders.

Which of the Following Is an Example of Stakeholder Interest