The Stakeholder Theory of Corporate Social Responsibility

question 25

Multiple Choice

The stakeholder theory of corporate social responsibility:

• A)strives to maximize profits for its shareholders.
• B)tries to balance the interests of shareholders and stakeholders.
• C)advocates the use of legal remedies to check corporate misbehavior.
• D)advocates the freedom of corporations to run as they wish.

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Definitions:

Demand

The quantity of a product or service that consumers are willing and able to purchase at various price levels, at a given point in time.

Price Elastic

A term referring to the responsiveness of the demand or supply of a good or service to changes in its price.

Harvest

The process or period of gathering in crops.

Market Conditions

Refers to the various economic and market factors influencing the buying and selling dynamics in a particular market at any given time.