Answer to Question #153629 in Management for Lesego Montoedi

Question

Explain the responsibilities of the management of an organisation towards its stakeholders

Answer 1

The management of every organization is obliged to provide relevant information concerning the organization's running and operational activities to the stakeholders. Information such as the organization's financial status is necessary for the stakeholders in making investment decisions related to the organization. On the other hand, such information is vital to the regulatory authorities to verify the organization's compliance status n to the set operational rules and regulations by the government.

The management is obliged to observe ethics in their operations in terms of their relationship with the stakeholders. Keeping codes of ethics within the organization and with the stakeholders will positively publicize the organization, thus attracting more public stakeholders.