The Stakeholder Theory Maintains That

question 89

Multiple Choice

The stakeholder 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:

Behavior

A term that simply refers to what individuals do—their observable actions. Behavior can be verbal or nonverbal. Behavior is also one of the four components of objectives, representing the actions students undertake to indicate that they have knowledge of the content.

Reinforcement

In psychology, the process of encouraging or establishing a pattern of behavior through rewards or punishments.

Punishment

The application of an adverse stimulus or removal of a positive stimulus in response to an unwanted behavior, aiming to reduce the likelihood of the behavior's occurrence.

Behavior

The actions or reactions of an individual or system in response to external or internal stimuli.