What is the indispensable notion behind the stakeholder theory?

What is the indispensable notion behind the stakeholder theory?
A . A business has interconnected relationships that accounts for complex interests that impact and are impacted by the business.
B . A firm is required to share its implicit and explicit value with its employees, suppliers, and local communities.
C . A business must first reach a maturity stage in profits and then embark on initiatives that will benefit people and planet.
D . Stakeholders must receive tangible financial value based on company’s net worth and its corporate
social responsibility strategy.

View Answer

Answer: A

Explanation:

The stakeholder concept proposes that any organization operates within a multifaceted environment, in which it impacts and is impacted by a variety of interests, called stakeholders, who all share in the value of the organization, and its initiatives.

Shareholder theory or Friedman doctrine, on the other hand, is the view that the only duty of a corporation is to maximize the profits accruing to its shareholders.