Effective stakeholder management is crucial for several reasons: 1. Building Trust and Reputation: Engaging stakeholders and addressing their concerns helps build trust and enhances the business's reputation. 2. Risk Management: Understanding stakeholder expectations can help identify potential risks and mitigate them proactively. 3. Improved Decision-Making: Considering diverse stakeholder perspectives leads to more informed and balanced decisions. 4. Sustainable Growth: Aligning business goals with stakeholder interests fosters long-term sustainability and success.