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Why is stakeholder approach necessary in professional management?

Answer and explanation

Correct answer: Because managerial decisions affect multiple groups, including employees, customers, owners and society

Stakeholders are individuals or groups that are affected by an organisation or can affect it, such as employees, customers, owners, suppliers and society. Professional management must consider the economic and social effects of decisions and balance these interests responsibly. Focusing only on owners' profit is not a stakeholder approach. Exam tip: Link stakeholder approach with accountability towards all parties affected by the organisation.

Related tags

Management As A ProfessionStakeholder ApproachProfessional ManagementManagerial ResponsibilityCorporate Social ResponsibilityNature And Significance Of ManagementBusiness StudiesClass 12 Mcq

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