ACCA Applied Knowledge · Business and Technology · Sustainable business practices
According to the stakeholder view of CSR, to whom does a company owe responsibilities?
Under the stakeholder view, a company owes responsibilities to all groups affected by or able to affect its activities, including employees, customers, suppliers and the community. This contrasts with the narrow shareholder view, which focuses only on owners and profit.
- AOnly to its shareholders, as the owners of the company
- BOnly to parties with whom it has a legal contract
- CTo all groups affected by or able to affect its activities, such as employees, customers and the communityCorrect
Explanation
The stakeholder view extends responsibility beyond shareholders and contractual parties to all groups with an interest in the company. The narrower views describe the shareholder (Friedman) approach and a purely contractual approach.
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