Macroeconomics chapter 6-12
Stakeholder map
a geographical representation of the relationship of stakeholder salience to a particular issue
Fiduciary
a person who exercises power on behalf of another
Nonmarket stakeholders
although they do not engage in direct contact with the firm, nonmarket stakeholders include the community, various levels of government, nongovernment organization
Public issue
any issue that is a concern to an organization and one or more of its stakeholders
General systems theory
argues that all organisms are open to, and interact with, their external environments, most organisms cannot be understood in isolation but only in relationship with their surroundings
Stakeholder theory of the firm
argues that corporations serve a broad public purpose- to create value for society. Corporations create profit but they have other values such as professional development for their employees and innovative new products for their customers. Multiple obligations and all stakeholder's interests are being taken into account
Salience
something is salient when it stands out from a background, is seen as important or draws attention.
Iron law of responsibility
in the long run those who do not use power in ways that society considers responsible will tend to lose it
Environmental analysis
is a method that managers use to gather information about external issues and trends so that they can develop an organizational strategy that minimizes threats and takes advantage of new opportunities
Environmental intelligence
is the acquisition of information gained from analyzing the multiple environments affecting organizations
Stakeholder analysis
managers identify relevant stakeholders and to understand both their interests and the power they may have to assert these interests
External stakeholder
market stakeholder- stockholders, customers, creditors, suppliers, wholesalers and retailers, nonmarket stakeholder= governments, communities, nongovernmental organizations, business support groups, media, competitors
Internal stakeholders
market stakeholders- employees, managers
Corporate social responsibility
means that a corporation should act in a way that enhances society and its inhabitants and be held accountable for any of its actions that affect people, their communities, and their environment
Stages in the business-stakeholder relationship
o Inactive= companies that simply ignore stakeholder concerns o Reactive= generally act only when they are forced to, and in a defensive manner o Proactive= companies try to anticipate stakeholder concerns o Interactive= that companies actively engage with stakeholders in an ongoing relationship of mutual respect, openness, and trust
Stakeholder
refers to a person and group that affect or are affected by an organizations decision, policies, and operations
Business
refers to any organization that is engaged in making a product or providing a service for a profit
Society
refers to human beings and to the social structures they collectively create, used to refer to segments of humankind, such as members of a particular community, nation, or interest group
Corporate power
refers to the capability of corporations to influence government, economy and society based on their organizational resources
Competitive intelligence
refers to the systematic and continuous process of gathering, analyzing, and managing external information about the organization's competitors
Stakeholder power
the ability to use resources to make an event happen or to secure a desired outcome. Stakeholders have five different kinds of power= voting power, economic power, political power, legal power and informational power
Ownership theory of the firm
the firm is seen as the property of its owners. The purpose of the firm is to maximize its long-term market value, to make the most money it can for its shareholders who own a stock in the company. In this theory the owner's interests are paramount and take precedent to the interest of others
Stakeholder interests
the nature of each group's stake
Interactive social system
the system that business and society form. Each needs the other, and influences each other
Performance- expectations gap
there often is a gap between what the firm wants to do or is doing and what stakeholders expect
Market stakeholders
those who engage in economic transactions with the company as it carries out its purpose of providing society with goods and services