Stakeholder Theory:
A) Requires business to consider other groups beyond shareholders when making decisions.
B) Is a free market theory.
C) Requires property rights before allowing input on a decision.
D) Both b and c
E) None of the above

Question

Quizplus · Accepted Answer

Stakeholder theory is the idea that businesses should consider the interests of all stakeholders (e.g. employees, customers, suppliers, communities, etc.) when making decisions, not just the shareholders who own the company. This is often seen as a more ethical approach to business, which prioritizes working for the greater good over simply maximizing profits for shareholders.