Question

Which of the following approaches does the following statement represent: This approach takes into account non-market forces that affect organizations and individuals, such as moral, political, legal, and technological interests, as well as economic factors.a. Stakeholder approachb. Stockholder approach

Answer 1

Answer:

(a) Stakeholder approach

Explanation:

A stakeholder approach is the practice that managers formulate and implement processes that satisfy stakeholders' needs to ensure long-term success. According to the degree of participation of the different groups, the company can take advantage of market imperfections to create valuable opportunities.

Answer 2

Answer:

A) stakeholder approach

Explanation:

Stakeholders are everybody that has a genuine concern for the activities that are carried out by an organization, it includes, shareholders, employees, customers, suppliers, government, community, etc.

The stakeholder approach focuses on the relationship between a company and all its stakeholders, not just the relationship between shareholders and upper management. The stakeholder theory states that companies should create value for all its stakeholders and not just maximize the wealth of its shareholders.