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social science subjects > business and management > business ethics > theories of ethics > agency theory

Preferred term

agency theory  

Definition

  • Agency theory is a framework for analyzing the process and outcomes that occur when one actor, the agent, performs services for another actor, the principal. Over the past two decades, agency theory has become increasingly influential for analyzing the owner-manager relationship in corporate governance, and is thought to represent a theory of the firm. [Source: International Encyclopedia of Organization Studies; Agency Theory]

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https://concepts.sagepub.com/social-science/concept/agency_theory

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