Which of the following identifies one reason why managers should NOT put time into managing stakeholder relationships?
A) Managing stakeholder relationships can lead to less predictability of environmental changes.
B) Managing stakeholder relationships can lead to more predictability of environmental changes.
C) Managing stakeholder relationships can lead to innovations.
D) Managing stakeholder relationships can lead to increased trust among stakeholders.
Answer: A
Explanation: Managing stakeholder relationships can lead to more, not less, predictability of environmental changes. If stakeholders are aware of the actions and decisions that the organization is going to undertake, they are less likely to feel "surprised" by those actions and decisions and more likely to become cooperative with the organization itself. Stakeholders who are not kept "in the loop" are likely to feel resentful toward the organization and more likely to take actions that are against the organization's better interests.
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