Bachelor of General Studies (BGS) Degree Practice Exam

Which argument supports the idea that stakeholder management realistically depicts how companies operate?

1. Normative argument.

2. Descriptive argument.

3. Empirical argument.

4. Philosophical argument.

The correct answer is: Descriptive argument.

The descriptive argument supports the idea that stakeholder management realistically depicts how companies operate because it focuses on the current state of affairs in business practices. This perspective highlights the actual behaviors and processes that firms engage in when managing their relationships with various stakeholders, such as customers, employees, suppliers, and the community. By observing and analyzing real-world examples of how companies interact with these groups, the descriptive argument reflects the practical implications of stakeholder management, demonstrating that it is an integral part of organizational functioning. In contrast, the normative argument would discuss how companies ought to operate based on ethical standards or values, which may not necessarily reflect actual practices. The empirical argument typically relies on data collection and quantitative analysis to validate claims, which could support the descriptive view but doesn't focus explicitly on the representation of operational dynamics. The philosophical argument would leverage theoretical frameworks to discuss underlying principles, rather than illustrating real-world applications. Thus, the descriptive nature of the argument aligns directly with the intention of portraying a realistic view of company operations in relation to stakeholder management.