All of the following are true regarding institutions except
A)Stakeholders closely align with institutions.
B)The regulatory system aligns with political institutions.
C)There is no clear link between institutional theory and the stakeholder orientation of management.
D)Competition relates to economic institutions.
E)Personal values and norms derive from social institutions.

Question

Quizplus · Accepted Answer

Institutional theory is closely linked to the stakeholder orientation of management. Institutions refer to the formal and informal rules, policies, and practices that shape organizational behavior and decision-making. Stakeholders are individuals or groups who have a stake or interest in the organization and its activities, such as employees, customers, investors, suppliers, and the community. Institutional theory emphasizes the importance of conforming to institutional norms and values to gain legitimacy and support from stakeholders. Therefore, there is a clear link between institutional theory and the stakeholder orientation of management.

All of the Following Are True Regarding Institutions Except