The stakeholder theory maintains that:
A)Companies have ethical responsibilities to all members of society,which allow corporations to exist based on a social contract
B)Managers are agents of the stockholders,and their only ethical responsibility is to increase the profits of the business without violating the law or engaging in fraudulent practices
C)Managers have an ethical responsibility to manage a firm for the benefit of all individuals and groups that have a stake in or claim on a company
D)Managers are agents of the customer,and their only ethical responsibility is to increase the service of the business,without violating the law or engaging in fraudulent practices

Question

Quizplus · Accepted Answer

The stakeholder theory posits that managers have a responsibility to consider the interests of all groups that have a stake in a company. This includes not only the stockholders, but also employees, customers, suppliers, and the broader community. The theory recognizes that corporations exist within a social context and have ethical responsibilities beyond simply maximizing profits for their shareholders.

The Stakeholder Theory Maintains That