Question

Organizations must identify their stakeholders for two reasons. The first is to obtain their resources and the second is to maintain their legitimacy.

a) True
b) False

Answer 1

The statement is true. Identifying stakeholders is important for organizations to obtain resources and maintain legitimacy.

Step-by-step explanation:

The statement is true.

An organization needs to identify its stakeholders for two reasons: to obtain their resources and to maintain their legitimacy. Stakeholders are individuals or groups who have an interest or stake in the organization and can influence or be affected by its actions.

For example, in a new automobile design, stakeholders would include the individuals who will purchase and use the car, the mechanics who will maintain and repair it, the Environmental Protection Agency that will monitor its emissions, and the oil companies that will supply its fuel. Identifying these stakeholders is important for the organization to ensure it can secure the necessary resources and maintain its reputation among those who have a stake in its success.