MGMT 1040 Chapter Notes -Stakeholder Management, Strategic Management, Fiduciary
18 Mar 2014
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Chapter 3: the stakeholder approach to business, society, and ethics. Interest/share in an undertaking or legal claim of ownership. Stakeholder: any individual or group who can affect or is affected by the actions, decisions, policies, practices or goals of the organization. Main stakeholder: individuals or groups that supply resources or bought products/services: managerial. Main stakeholder: business firms who have responsibilities toward other major constituent groups: stakeholder. Main stakeholder: the firm itself and its multilateral relationships with constituent or stakeholder groups. Primary social stakeholders: direct stake in the organization and its success, most influential. Secondary social stakeholders: extremely influential in affecting reputation and public standing, stake in organization more indirect, can become a primary stakeholder when a claim"s urgency (boycott or demonstration) takes precedence over its legitimacy. Legitimacy: perceived validity or appropriateness of a stakeholder"s claim to a stake. Owners, employees and customers have a high degree of legitimacy due to their explicit, formal and direct relationships with a company.
