An organization is responsible to many different entities. In order to meet the demands of these groups, organizations must participate in stakeholder management. Stakeholder management means that
A) interests of the shareholders are not the only interests that matter.
B) stakeholders are second in importance to the shareholders.
C) stakeholders and managers inevitably work at cross-purposes.
D) all stakeholders receive financial rewards.

Question

Quizplus · Accepted Answer

Stakeholder management recognizes that there are multiple groups to which an organization has responsibilities, not just shareholders. This approach ensures that the interests of all parties, including employees, customers, suppliers, and the community, are considered in decision-making processes.

An Organization Is Responsible to Many Different Entities