The "systems approach" to business and society builds on which of the following stakeholder theory insights?
A) Firms have relationships with many constituent groups,which both affect and are affected by the actions of the firm.
B) Firms have relationships with many constituent groups,and that these groups must be managed to best promote value to stockholders.
C) Although firms have relationships with many constituent groups,these groups have little impact on the ongoing management of business firms.
D) 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 recognizes that a business is a complex system with interdependent components, including stakeholders such as customers, employees, suppliers, and the community. Therefore, the approach is built on the stakeholder theory insight that firms have relationships with many constituent groups and that these relationships affect and are affected by the actions of the firm. Option B is incorrect because it suggests that the management of stakeholder groups is solely for the benefit of stockholders, which is not a comprehensive view of the systems approach. Option C is incorrect because it negates the importance of stakeholder relationships in business management. Option D is incorrect because it assumes that stakeholder relationships are limited to only a few groups directly connected to business operations.

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