BUS 101 Lecture Notes - Lecture 2: Stakeholder Analysis, Stakeholder Theory, Market Trend
Document Summary
Stakeholder- any person or organization that affects or is affected by actions of a business (owners are always stakeholders, and the government will never be a stakeholder in this class) Business- any organization that is engaged in making a product or providing a service for a profit. Society- refers to human beings and to social structures they collectively create. Ownership theory of the firm- the firm is seen as property of its owners. The owner is the only stakeholder that matters, and the firms purpose is to make a profit. Stakeholder theory of the firm- argues that corporations serve a broad public purpose: to create value for society. Multiple stakeholders matter, they look at all of the constituents. It"s more realistic and effective, and generally more ethical. Firms look at the economic, legal, and ethical standpoints of their decisions. Fiduciary- a person who exercises power on behalf of another, that is, who acts as the other"s agent.
