Bachelor of General Studies (BGS) Degree Practice Exam

What type of relationship do corporations have with their stakeholders?

1. Unilateral

2. Compliant

3. Dynamic

4. Cohesive

The correct answer is: Dynamic

The relationship that corporations have with their stakeholders is best described as dynamic. This means that the interactions between corporations and their stakeholders—such as employees, customers, investors, suppliers, and the community—are constantly evolving. Stakeholders have varying interests, expectations, and influences that can change over time. Corporations must be flexible and responsive to these shifts to maintain positive relationships and effectively address the needs and concerns of their stakeholders. In contrast, a unilateral relationship would imply that only one party exerts influence or control without taking into account the interests of the other, which isn't representative of the collaborative nature of stakeholder interactions. A compliant relationship suggests that corporations merely follow the demands or expectations of stakeholders without engaging in meaningful dialogue, which does not reflect the proactive approach companies often take. Lastly, a cohesive relationship would indicate an ideal harmony among all parties, which, while desirable, does not capture the continuous negotiation and adaptation required in these interactions. The dynamic nature of stakeholder relationships encompasses the interactions, negotiations, and adaptations that occur as companies respond to the changing landscape of stakeholder expectations and market conditions.