Certified Supply Chain Professional (CSCP) Practice Exam

Who is considered the primary stakeholder in any business activity?

1. The local community

2. The government

3. The business

4. The employees

The correct answer is: The business

In the context of business activity, the primary stakeholder is the business itself. This is because the business is the entity that drives the operations, objectives, and strategies within the marketplace. It is responsible for making decisions that align with its goals, managing resources, and generating profit. The interests and well-being of the business are crucial for its sustainability and growth, which ultimately impacts other stakeholders, including employees, customers, suppliers, and the local community. The business makes strategic decisions that must consider various factors, such as market conditions, competition, and resource allocation, to remain viable and successful. While other stakeholders like employees, the government, and the local community play significant roles and have vested interests in the business, they are often influenced by the decisions made by the business itself. Thus, the business stands at the center of stakeholder relationships and is considered the primary stakeholder in any business activity.