Agency theory focuses on providing value to all the company's stakeholders as a whole on the basis that this will benefit society as a whole.

Question

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Agency theory focuses on the relationship between the principal (usually the shareholders) and the agent (usually the managers), and how to align their interests to maximize shareholder value. It does not necessarily prioritize the value of all stakeholders or benefit society as a whole.

Agency Theory Focuses on Providing Value to All the Company's