Business Environment Chapter 3

Front 1

Stake

Back 1

• An interest or a share in an undertaking.
• An interest
• A Right – Legal Right – Moral Right
• Ownership

Front 2

Stakeholder

Back 2

Any individual or group who can affect or is affected by the actions, decisions, policies, practices, or goals of the organization.

Stakeholder is a variant of the concept of stockholder– an investor/owner of businesses

Front 3

Five “major” stakeholders

Back 3

Governemt
Communioty
Consumers
Employees
Owners

Front 4

Views of the Firm

Back 4

Production View
Managerial View
Stakeholder View

Front 5

Legitimacy

Back 5

Refers to the perceived validity or appropriateness of the stakeholder’s claim to a stake.

Front 6

Power

Back 6

Refers to the ability or capacity of a stakeholder to produce an effect.

Front 7

Urgency

Back 7

Refers to the degree to which the stakeholder’s claim demands immediate attention or response

Front 8

Key questions in stakeholder management

Back 8

1.Who are our stakeholders?
2.What are our stakeholders’ stakes?
3.What opportunities and challenges do our stakeholders present to the firm?
4.What economic, legal, ethical, and philanthropic responsibilities does the firm have to its stakeholders?
5.What strategies or actions should the firm take to best address stakeholder challenges and opportunities?

Front 9

Strategic stakeholder management

Back 9

1.Governing Philosophy - Integrate stakeholder management into the firm’s governing Philosophy
2.Values Statement - Create a stakeholder-inclusive “values statement.”
3.Measurement System - Implement a stakeholder performance measurement system

Front 10

Actions to Deal with stakeholders

Back 10

•Do we deal directly or indirectly with stakeholders?
•Do we take the offense or the defense in dealing with stakeholders?
•Do we accommodate, negotiate, manipulate, or resist stakeholder overtures?
•Do we employ a combination of the above strategies or pursue a singular course of action?