Question

The principle of 'Subordination of Individual Interest to General Interest' extends beyond just employees to include which of the following stakeholders?

• A. Only owners and shareholders.
• B. Only customers and creditors.
• C. All stakeholders, including owners, shareholders, creditors, customers, and society.
• D. Only the management team.

Answer 1

Answer:

C. All stakeholders, including owners, shareholders, creditors, customers, and society.

• The principle of "Subordination of Individual Interest to General Interest" according to Henri Fayol extends beyond just employees to include all stakeholders such as owners, shareholders, creditors, customers, and society at large. Fayol emphasized that the interests of the organization as a whole, including those of all these stakeholders, must prevail over the interests of any individual or small group. This ensures harmony, coordination, achievement of organizational objectives, and long-term success.

Thus, the organization's goals and stakeholders’ interests cannot be sacrificed for the personal interests of any one individual within or outside the company.