Bachelor of General Studies (BGS) Degree Practice Exam

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What is an indicator of a company's inactive approach towards stakeholders?

  1. Engaging frequently in dialogue

  2. Ignoring the needs of stakeholders

  3. Actively collaborating for mutual benefits

  4. Seeking input from community organizations

The correct answer is: Ignoring the needs of stakeholders

The indicator of a company's inactive approach towards stakeholders is ignoring the needs of stakeholders. By neglecting to address or consider the interests, concerns, and expectations of their stakeholders, a company demonstrates a lack of engagement and responsiveness. This inattention can lead to a breakdown in relationships with key stakeholder groups, resulting in potential reputational damage, loss of trust, and decreased shareholder value. In contrast, the other options reflect active engagement or collaboration, which are vital for building beneficial relationships and fostering a cooperative environment between a company and its stakeholders.