Question

The ________ view is that management's social responsibility goes beyond making profits to include protecting and improving society's welfare.

A) Classical
B) Stakeholder
C) Shareholder
D) Economic

Answer 1

The stakeholder view in business suggests that management's responsibility extends beyond profits to include social welfare, considering the interests of all affected parties.

Step-by-step explanation:

The view that management's social responsibility extends beyond making profits to include protecting and improving society's welfare is represented by stakeholder theory. This is in contrast to shareholder primacy, which suggests that a firm's managers should act solely for the interests of shareholders. Stakeholder theory, as opposed to shareholder theory, posits that managers should balance the interests of all relevant parties, including, but not limited to, employees, customers, and the local community, not just the shareholders who invest capital in the company.