ACCA Applied Knowledge · Business and Technology · Stakeholders in business organisations
Which of the following is a recognised way in which a company can reduce conflict with a powerful stakeholder group such as a major customer?
Regular consultation is the recognised approach. It lets the company understand the group's expectations and negotiate workable compromises before conflict escalates. Ignoring them until they make formal demands allows problems to grow, and relabelling the group as low-interest does not change its real power.
- AIgnoring the group's expectations until they become formal demands
- BEntering a regular consultation process to understand and negotiate their expectationsCorrect
- CReclassifying the group as low-interest so it no longer needs attention
Explanation
Regular consultation lets the company understand expectations and negotiate acceptable compromises, which builds the relationship and reduces conflict. Ignoring expectations lets conflict grow. Reclassifying the group does not change its actual power or interest.
Did you get it right without looking?
One question tells you little. A timed set on Stakeholders in business organisations shows your real accuracy, how long you take and where you lose marks.
More Stakeholders in business organisations questions
- Zentra Ltd plans to close a factory to cut costs and raise returns for its shareholders. Employees and the local community oppose the closur…
- Zeta Ltd's board argues that spending on local community projects is justified even where it reduces short-term profit, because good communi…
- Which of the following is an example of an internal stakeholder of a company?
- Which of the following is a common criticism of stakeholder theory when compared with shareholder theory?
- Which of the following best describes the shareholder (proprietary) theory of the firm?
- A listed manufacturer decides to keep a loss-making local factory open for two more years, despite lower short-term profit, because closure …