Which of the following is a theory that recognizes that firms have relationships with many constituent groups which both affect and are affected by the actions of the firm?

Question

Quizplus · Accepted Answer

The theory that recognizes the relationships between the firm and its various constituent groups is called the Stakeholder Theory. This theory holds that a company has a responsibility to manage its business operations in a way that takes into account the interests of all stakeholders, not just shareholders. These stakeholders may include customers, employees, suppliers, communities, and the environment.

Which of the Following Is a Theory That Recognizes That