Bachelor of General Studies (BGS) Degree Practice Exam

What do large corporations need to enhance according to stakeholder expectations?

1. Profits

2. Society

3. Market share

4. Employee satisfaction

The correct answer is: Society

Large corporations are increasingly recognized as having a responsibility that extends beyond just generating profits for their shareholders. Stakeholder expectations encompass a wide variety of interests, including those of employees, customers, communities, and the environment. Fulfilling these expectations often involves enhancing societal benefits, such as contributing to community well-being, engaging in sustainable practices, and fostering social responsibility. When corporations prioritize societal enhancement, they demonstrate their commitment to being responsible corporate citizens, which can lead to improved public perception, customer loyalty, and overall brand reputation. By addressing issues such as environmental sustainability, social equity, and community development, corporations align their operations with the values and expectations of a diverse group of stakeholders. Focusing on profits or market share may fulfill financial objectives but does not necessarily address broader societal impacts. Similarly, while employee satisfaction is essential, it is just one aspect of the larger social responsibility that corporations need to engage with to meet stakeholder expectations effectively. Thus, prioritizing societal enhancement offers a holistic approach to fulfilling the diverse needs of various stakeholders.