ACCA Applied Knowledge · Business and Technology · Stakeholders in business organisations
A company wants to build long-term trust with a local community affected by its operations. Which action is most consistent with proactive stakeholder relationship management?
Setting up regular consultation meetings and acting on the feedback received. This is proactive, two-way engagement that builds trust over time, whereas responding only when legally required or using one-way communication is reactive and gives the community little voice.
- AResponding to community complaints only when legally required
- BSetting up regular consultation meetings and acting on feedbackCorrect
- CReleasing a single annual press statement
- DRelying on the media to relay its views to the community
Explanation
Proactive management involves ongoing two-way dialogue and responding to stakeholder concerns, which builds trust. Acting only when legally required is reactive, and one-way or indirect communication does not allow feedback to be heard and acted upon.
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