Question

1. Companies will engage in sustainability practices because they believe they must protect more than just...

1.

Companies will engage in sustainability practices because they believe they must protect more than just the company's assets.

This statement aligns with which of the following theories?

Group of answer choices

a. Stewardship theory

b. Legitimacy theory

c. Stakeholder theory

d. Agency theory

e. Signalling theory

2.

Companies will engage in sustainability practices because they believe their responsibility extends beyond shareholders.

This statement aligns with which of the following theories?

Group of answer choices

a. Legitimacy theory

b. Agency theory

c. Stewardship theory

d. Signalling theory

e. Stakeholder theory

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Homework Answers

Answer #1

Answer :

1. Option - B, Legitimacy theory

Explanation : Legitimacy theory is a theory which ensures that organisations are operate within social and environmental bounds. It is based on the idea that there is a social contract between society and business.

It explains the behaviour of organizations in implementing and developing social and environmental matters to fulfill their responsibilities.

2. Option - E, Stakeholder theory

Explanation : Stakeholder theory states that a business organisation has to create value for all its stakeholders but not only for its shareheholders. A business must maximize value for all its stakeholders.

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