The __________ theory recognizes that firms have relationships with many constituent groups which both affect and are affected by the actions of the firm.
A) stakeholder
B) stockholder
C) relational
D) cohesive

Question

Quizplus · Accepted Answer

The stakeholder theory recognizes that a firm's actions impact and are impacted by various groups, including employees, customers, shareholders, suppliers, the community, and the environment. The theory suggests that these stakeholders should have a voice in the decision-making process and that the firm has a responsibility to consider their interests, not just the interests of the shareholders.

The __________ Theory Recognizes That Firms Have Relationships with Many