1) An organization's culture constrains managers by influencing what actions and activities are considered proper or improper and valued by the organization. Managers should understand the culture to determine what behaviors are rewarded.
2) An organization's external environment, including factors like economic conditions, legislation, and other stakeholders, also affects managers by introducing uncertainty that impacts planning and decision-making.
3) Managing relationships with external stakeholders is important for organizational performance and is considered ethical, as organizations and stakeholders are interdependent. Understanding stakeholder interests helps organizations determine how to manage these relationships.