Which theory of corporate social responsibility requires consideration of the effects of actions on all stakeholders rather than favoring shareholders?

The chosen answer is rooted in the stakeholder theory proposed by Edward Freeman. This theory emphasizes that a corporation has responsibilities not only to its shareholders but also to all individuals and groups affected by its actions—these are the stakeholders. Stakeholders can include employees, customers, suppliers, the community, and others who may be impacted by the company’s decisions.

The essence of stakeholder theory is the recognition that business decisions can have far-reaching effects beyond just financial returns to shareholders. It promotes the idea that companies should consider the interests and well-being of all parties involved, aiming for a balance that benefits a wider array of stakeholders. This perspective encourages businesses to behave in a more socially responsible manner, considering long-term impacts and sustainability rather than focusing solely on immediate profits.

This contrasts with the shareholder theory, which primarily prioritizes the financial interests of shareholders. The other theories mentioned tend to address aspects of justice or ethics but do not specifically encompass the comprehensive view of balancing various stakeholders' interests that is central to stakeholder theory. Thus, the stakeholder theory is the most fitting response to the question regarding corporate social responsibility.