Which of the following theories is associated with the perspective that considers the importance for an organisation’s survival of satisfying the demands of its various stakeholders?
Question
Which of the following theories is associated with the perspective that considers the importance for an organisation’s survival of satisfying the demands of its various stakeholders?
Solution
The theory associated with the perspective that considers the importance for an organisation’s survival of satisfying the demands of its various stakeholders is the Stakeholder Theory. This theory posits that organizations have a responsibility to various groups that have a stake in the organization, not just shareholders. These groups can include employees, customers, suppliers, and the community, among others. The theory suggests that satisfying these stakeholders can lead to improved business performance.
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