The "systems approach" to business and society builds on which of the following stakeholder theory insights?
A) That firms have relationships with many constituent groups, which both affect and are affected by the actions of the firm.
B) That firms have relationships with many constituent groups, and that these groups must be managed to best promote value to stockholders.
C) That although firms have relationships with many constituent groups, these groups have little impact on the ongoing management of business firms.
D) That firms have relationships with only a few groups, such as employees, that are directly connected with business operations.

Question

Quizplus · Accepted Answer

The systems approach to business and society recognizes that firms have relationships with many different stakeholder groups, and that these relationships are bidirectional - the firm impacts these groups, and these groups impact the firm. This aligns with the key insight of stakeholder theory, which argues that firms must attend to the concerns and interests of multiple stakeholders in order to create value over the long term. Choices B, C, and D are incorrect because they either suggest that only one or a few stakeholder groups matter or that stakeholders have little impact on firms.

The "Systems Approach" to Business and Society Builds on Which