Bachelor of General Studies (BGS) Degree Practice Exam

Which approach describes companies that initiate engagement with stakeholders?

1. Defensive

2. Reactive

3. Proactive

4. Inactive

The correct answer is: Proactive

The correct choice, "proactive," refers to an approach where companies take the initiative to engage with their stakeholders before issues arise or as opportunities present themselves. This means actively reaching out, communicating, and fostering relationships with stakeholders, rather than waiting for them to come forward or for problems to occur. A proactive approach demonstrates a commitment to transparency and collaboration, often resulting in a more positive relationship with stakeholders, as it shows that the company values their input and is willing to address their concerns before they escalate. This not only enhances the company's reputation but can also lead to better decision-making and problem-solving through stakeholder feedback. In contrast, the defensive approach typically focuses on protecting the company from potential issues or criticisms, often reacting to stakeholder concerns only when necessary. The reactive approach involves responding to situations as they arise without planning or engagement beforehand. The inactive approach signifies a lack of engagement entirely, where companies are not taking steps to involve or communicate with their stakeholders. Proactive engagement stands out as the most effective and beneficial strategy for fostering strong, lasting relationships with stakeholders.