Important information number 1

Which of the following is not an example of stakeholder's economic power?

A social group protests a government's decision to raise taxes.

Which statement is not correct about the business-society interdependence?

Actions by governments rarely affect business.

Corporations that run their operations according to the stakeholder theory of the firm create value by:

All of these answers are correct. Innovating new products, increasing their stock price, developing their employees' professional skills.

Stakeholder analysis

An important part of the modern manager's job is to identify relevant stakeholders and to understand both their interests and the power they may have to assert these interests.

stakeholder salience

Another variation of stakeholder analysis focuses on. Some scholars have suggested that managers pay the most attention to stakeholders possessing greater salience

boundary-spanning departments

Are departments, or offices, within an organization that reach across the dividing line that separates the company from groups and people in society.

Internal Stakeholders

Are those, such as employees and managers, who are employed by the firm.

Stakeholder interest

Are, essentially, the nature of each group's stake. What are their concerns, and what do they want from their relationship with the firm?

Which of the following is the result of the inseparable relationship between business and society?

Both of these are coorect: All business decisions have a social impact and the vitality of business depends on society's action and attitudes.

External Stakeholders

By contrast, are those who- although they may have important transactions with the firm- are not directly employed by it.

General system theory

First introduced in the 1940s, argues that all organisms are open to, and interact with, their external environments.

A firm subscribing to the shareholder theory of the firm would mainly be concerned with providing value for its

Investors

A stakeholder analysis:

Involves understanding the nature of stakeholder interest.

All of the following are external stakeholders of the firm except:

Managers

Which one of the following is considered to be a nonmarket stakeholder of business?

Nongovernmental organizations

Society

Refers to human beings and to the social structures they collectively create. In a more specific sense, the term is used for segments of humankind, such as members of a particular community, nation, or interest groups.

Stakeholder

Refers to persons and groups that affect or, are affected by, an organization's decisions, policies and operations.

Stakeholder groups can include

Shareholders Business support groups. Environmental activists Which all of them are correct.

Shareholder theory of the firm:

Sometimes also called the ownership theory, the firm is seen as the property of its owner. The purpose of the firm is to maximize its long-term market value, that is, to make the most money it can for shareholders who own stocks in the company.

Interactive social system:

Systems theory helps us understand how business and society, taken together

Focal organization

The organization from whose perspective the analysis is conducted.

business

Today is arguably the most dominant institution in the world. The term business refers here to any organization that is engaged in making a product or providing a service for a profit.

The five types of stakeholders' power recognized by most experts are

Voting, Economic, Political, Legal and informational power

Stakeholder mapping

a visual representation of the relationships among stakeholder interests, power, and coalitions with respect to a particular issue.

stakeholder coalitions

alliances among a company's stakeholders to pursue a common interest

Market stakeholders

are those that engage in economic transactions with the company as it carries out its purpose of providing society with goods and services.

Stakeholder Theory of the Firm

argues that corporations serve a broad public purpose: to create value for society

Nonmarket stakeholders

by contrast, are people and groups who-although they do not engage in direct economic exchange with the firm- are nonetheless affected by or can affect its nation.

Stakeholder power

means the ability to use resources to make an event happen or to secure a desired outcome.