Asked by Toshia Bolton on Jun 26, 2024

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Why is it important for businesses to recognize secondary stakeholder groups?

A) They are absolutely necessary for the firm's survival.
B) They include the employees necessary for the firm's success.
C) They usually have more power than primary stakeholders.
D) They provide vital resources that companies need.
E) They have legitimacy and can exert power.

Secondary Stakeholder Groups

Those individuals or organizations indirectly affected by a company's operations, typically not directly engaged in transactions with the company but impacted by its actions.

Legitimacy

The general perception that an action, entity, or institution is appropriate and justified according to socially constructed norms, values, beliefs, and definitions.

  • Differentiate primary from secondary stakeholders and understand their pertinence to the business.
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SR
sahith reddyJul 02, 2024
Final Answer :
E
Explanation :
Secondary stakeholder groups can have legitimacy and therefore can exert power over a company. Ignoring their concerns and needs can lead to backlash and negative consequences for the firm. Additionally, they may provide important resources such as suppliers or community support. However, they are not necessarily more powerful than primary stakeholders, and their importance may vary depending on the specific business and industry.