Which of the following statements is true about the stakeholder theory of corporate social responsibility?
A)It states that companies should only focus on increasing shareholder wealth.
B)It states that social responsibility is best carried out by government agencies.
C)It states that a company owes a duty to be a good citizen in its community.
D)It states that employees and not the top management should be involved in corporate social responsibility.

Question

Quizplus · Accepted Answer

The stakeholder theory of corporate social responsibility states that a company has a duty to be a good citizen in its community, in addition to maximizing shareholder value. This means that the company should consider the interests of all stakeholders, including employees, customers, suppliers, and the community, in its decision-making processes. Option A is incorrect as it contradicts the stakeholder theory. Option B is incorrect as it states that social responsibility is best carried out by government agencies, which is not part of the stakeholder theory. Option D is incorrect as it does not reflect the stakeholder theory, which involves both employees and top management in corporate social responsibility efforts.

Which of the Following Statements Is True About the Stakeholder