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Why does a professional manager give importance to stakeholders?

Answer and explanation

Correct answer: Because managerial decisions affect stakeholders or are affected by them.

The governing concept is stakeholder responsibility within professional management. Stakeholders include groups such as customers, employees, owners, suppliers, creditors, government and the community. Managerial decisions can influence these groups, and their expectations or responses can also influence organisational decisions. Option A is correct because a professional manager must consider these mutual effects and try to balance legitimate interests while pursuing organisational objectives. Option B is false because stakeholders are directly connected with organisational performance. Option C reverses the meaning of professional service, and Option D rejects the ethical basis of responsible management. Thus, stakeholder consideration is an essential part of professional and socially responsible conduct.

Related tags

ManagementProfessionStakeholdersEthicsManagement As A ProfessionNature And Significance Of ManagementBusiness StudiesClass 12 Mcq

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