Bachelor of General Studies (BGS) Degree Practice Exam

The emergence of a public issue typically indicates what?

1. A need for improved marketing strategies

2. A growing gap between stakeholder expectations and organizational actions

3. Increased regulation from the government

4. An improved reputation of the company

The correct answer is: A growing gap between stakeholder expectations and organizational actions

The emergence of a public issue often signifies a growing gap between stakeholder expectations and the actions taken by an organization. When stakeholders—such as customers, employees, investors, or the community—believe that an organization's policies or practices do not align with their values or expectations, this misalignment can lead to public concern or outcry. This situation can arise from various factors, including environmental concerns, ethical business practices, or social responsibilities, which stakeholders increasingly prioritize. As this gap widens, it becomes a public issue because it affects how the organization is perceived by its stakeholders and can lead to negative consequences such as boycotts, protests, or reputational damage. Organizations that recognize this gap may need to adapt their strategies and practices to meet stakeholder expectations and address their concerns adequately. This concept helps in understanding the dynamics of corporate social responsibility and stakeholder management, illustrating the importance of aligning organizational actions with the evolving expectations of the public.