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 approach
b) Stockholder approach

Answer 1

Answer: A. Stakeholder approach

Explanation: Stakeholder approach is an important management process, whereby critical Management functions such as policies you formulation and implementation is championed by the managers. Stakeholder's approach shifts from the notion of being entirely profit-centred towards the idea of creating value for all its stakeholders. Taking cognizance of non-market forces such as moral, legal, political and technological interest that affects its stakeholders ; organization, supplier, customers and other shareholders.