When managers apply the _____________ theory of ethical decision making, they believe that managers have an ethical responsibility to manage a firm for the benefit of all individuals and groups that have a claim on a company.
A) social contract
B) stakeholder
C) stockholder
D) Midas

Question

Quizplus · Accepted Answer

The stakeholder theory of ethical decision making holds that managers have an ethical responsibility to manage a firm for the benefit of all individuals and groups that have a stake in the company's operations, including employees, customers, suppliers, shareholders, and the broader community. This is in contrast to the stockholder theory, which prioritizes the interests of shareholders above all other groups. The social contract theory is related to stakeholder theory in that it also emphasizes the responsibilities of businesses to society as a whole. The Midas theory is not a recognized ethical theory of decision making.

When Managers Apply the _____________ Theory of Ethical Decision Making