SMG SM 131 Chapter Notes - Chapter 3: Stakeholder Management, Animal Welfare, Natural Environment

• School: Boston University
• Department: School of Management
• Course: SMG SM 131
• Professor: Matthew Reis

Document Summary

Chapter 3: the stakeholder approach to business, society, and ethics. Stake -an interest in or a share in an undertaking. Stakeholder - an individual or a group that has one or more of the various kinds of stakes in the organization; they affect or are affected by the actions, decisions, policies, practices, or goals of the organization. Interest: when a person or group will be affected by a decision, it has an interest in that decision, right a. Direct stakeholders-have a legitimate, direct interest in the company. Three views of the firm: production view -stakeholders are only suppliers and consumers, managerial view -stakeholders now include owners and employees. Stakeholder view -many stakeholders mapped out in a stakeholder map. The secondary social and nonsocial stakeholders are called nonmarket players. Legitimacy -perceived validity or appropriateness of a stakeholder"s claim to a stake. Owners, employees and customers are more legitimate than social activist groups, competitors or the media.