Refer to the scenario below to answer the following questions.
Managing Stakeholder Relationships (Scenario)
Natasha has been hired by Virtual Screen Corporation, a manufacturer of custom window coverings and retractable screen doors. Virtual Screen has recently been having problems with some of their major stakeholders. Some suppliers have been shipping poor quality materials, and customer complaints are increasing. Natasha has been hired to help resolve the current issues and to develop a plan for managing other stakeholder problems in the future.
-Natasha begins by defining stakeholders as __________.
A) the constituencies in the external environment that are employed by the organization
B) the constituencies in the external environment that own shares in the organization
C) the constituencies in the external environment that compete with the organization
D) the constituencies in the external environment that regulate the industry
E) any constituencies in the external environment that are affected by the organization's decisions and actions

Question

Quizplus · Accepted Answer

Natasha defines stakeholders as any constituencies in the external environment that are affected by the organization's decisions and actions. This is a broad and inclusive definition of stakeholders, which is consistent with stakeholder theory. It recognizes that stakeholders can include not only customers and suppliers but also employees, communities, governments, and other groups with a stake in the organization. This definition implies that managing stakeholder relationships involves understanding and engaging with a diverse set of stakeholders and balancing their competing interests and expectations.

Refer to the Scenario Below to Answer the Following Questions