The Stockholder Theory Maintains That

question 105

Multiple Choice

The stockholder 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 organization's owners, 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 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

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Definitions:

Culture

The sum of attitudes, customs, and beliefs that distinguishes one group of people from another.

Values

Core beliefs or standards that guide behavior and decision-making.

Customs

Traditional and widely accepted ways of behaving or doing something that are specific to a particular society, place, or time.

Roles

The functions or parts played by individuals in a particular social context or system.