MGMT 3880.001 - Business Ethics and Social Responsibility

What are the interests of each stakeholder?

Stakeholder interests are, essentially, the nature of each group's stake. -Shareholders, for their part, have an ownership interest in the firm. -suppliers wish to obtain profitable orders, use theur capacity efficiently, and build stable relationships with their business customers. -governments, public interest groups, and local communtities have another sort of relationship with the company.

Corporate Social Responsibility

Students will develop an understanding of the concept of corporate social responsibility or corporate citizenship. Social auditing or accountability for reporting a company's social performance is introduced. Practical management, focusing on four key groups will inform students of the types of stakeholder challenges in the modern work environment.

How can Suppliers, customers, employees, and other stakeholders have economic power with the company?

Suppliers, for example, can withhold supplies or refuse to fill orders if a com- pany fails to meet its contractual responsibilities. Customers may refuse to buy a compa- ny's products or services if the company acts improperly. They can boycott products if they believe the goods are too expensive, poorly made, or unsafe. Employees, for their part, can refuse to work under certain conditions, a form of economic power known as a strike or slowdown. Economic power often depends on how well organized a stakeholder group is. For example, workers who are organized into unions usually have more economic power than do workers who try to negotiate individually with their employers.

Grading:

Syllabus Quiz 10 points Mini-Case Quizzes (6 @ 50 points each) 300 points Discussion Boards (2 @ 70 points each) 140 points Exam #1 150 points Exam #2 150 points Exam #3 Ethical Case Study Analysis Total Points 150 points 100 points 1000 points Grades will be based on the points earned during the course according to this scale: A =900-1000 points B 800-899 points C = 700 - 799 points D = 600-699 points F = Below 600 points

Explosion of new technology and innovation.

Technology is one of the most dra- matic and powerful forces affecting business and society. It has led to the world appearing to be smaller and more connected. New technological innovations har- ness the human imagination to create new machines, processes, and software that address the needs, problems, and concerns of modern society. In recent years, the pace of technological change has increased enormously. From scientific break- throughs in medicine to autonomous vehicles and artificial intelligence, change keeps coming. The extent and pace of technological innovation pose massive chal- lenges for business, and sometimes government, as they seek to manage various privacy, security, and intellectual property issues embedded in this dynamic force.

the Stakeholder Theory of the Firm

The Stakeholder Theory of the Firm argues that corporations serve a broad public purpose: to create value for society - the complete contrary to the Shareholder Theory of th Firm -Corporations create many other kinds of value as well, such as professional development for their employees and innovative new products for their customers. -In this view, corporations have multiple obligations, and all stakeholders' interests must be taken into account.

Who are the relevant stskeholders?

The first question requires management to identify and map the relevant stakeholders. -Not all stakeholders listed will be relevant in every management situation -For example, a privately held firm will not have shareholders -Some businesses sell directly to customers online and will not have retailers. In other situations, a firm may have a stakeholder— a creditor that has loaned money—but this group is irrelevant to management's particular issue. -But stakeholder analysis involves more than simply identifying stakeholders; it also involves understanding the nature of their interests, power, legitimacy, and links with one another

DROPPING THE COURSE:

May 28, 2024

Society (book definition)

- In its brpadest sence, refers to human beings and to the social structures they collectively create. In a more specific sense, the term is used to refer to segments of humankind, such as members of a particular community, nation, or interest group. - As a set of organizations created by humans, business is clearly a part of society. -At the same time, it is also a distinct entity, separated from the rest of society by clear boundaries. -Business is engaged in ongoing with its external environment across these diving lines.

LO 1-1: understanding the relationships between business and society and the ways in which business and society are part of an interactive system

- The paradox of Amazon's financial success and ethically lacking practices (success emphasized in page 24 failures on people and society (criticism) emphasized on- pages24 -25 - amazon taking retail clerk jobs from mass retialers like JcPenny, Macy's, and Target which mostly employ minorities and women of color in these positions and this is true because I am the woman of color being employed by mass retailers for sales clerk positions

General systems theory pg 26

-- As applied to management theory, the systems concept implies that business firms (social organisms) are embedded in a broader social structure (external environment) with which they constantly interact. -- theory 1st introduced in the 1940s, argues that all organisms are open to, and interact with their external environment. --Like biological organisms, moreover, business must adapt to changes in the environment. Plants growing in low-moisture environments must develop survival strategies, like the cactus that evolves to store water in its leaves.

Business (book definition)

-Most dominant institution in the world -refers to any organization that is engaged in making a product or providing a service for a profit

LO 1-5 Recognizing the diverse ways in which modern corporations organize internally to interact with various stakeholders

-Theorists also distinguish between internal stakeholders and external stakeholders. -Internal stakeholders are those, such as employees and managers, who are employed by the firm. -They are "inside" the firm, in the sense that they contribute their effort and skill, usually at a company worksite. -External stakeholders, by contrast, are those who- although they may have important transactions with the firm- are not directly employed by it.

society,4

A number of broad forces shape the relationship between business and society. These include changing societal and ethical expectations; a dynamic global economy; redefini- tion of the role of government; ecological and natural resource concerns; and the trans- formational role of technology and innovation. To deal effectively with these changes, corporate strategy must address the expectations of all of the company's stakeholders.

stakeholder theory of the firm, 6

According to the stakeholder theory of the firm, the purpose of the modern corporation is to create value for all of its stakeholders. To survive, all companies must make a profit for their owners. However, they also create many other kinds of value as well for their employees, customers, suppliers, communities, and others. For both practical and ethical reasons, corporations must take all stakeholders' interests into account.

Dynamic natural environment.

All interactions between business and society occur within a finite natural ecosystem. Humans share a single planet, and many of our resources—oil, coal, and gas, for example—are nonrenewable. Once used, they are gone forever. Other resources, like clean water, timber, and fish, are renewable, but only if humans use them sustainably, not taking more than can be naturally replen- ished. Climate change now threatens all nations. The relentless demands of human society, in many arenas, have already exceeded the carrying capacity of the Earth's ecosystem. The state of the Earth's resources and changing attitudes about the nat- ural environment powerfully impact the business-society relationship. These issues are explored in Chapters 9 and 10.

chapter 1: The Corporation and Its Stakeholders

Business corporations have complex relationships with many individuals and organizations in society. The term stakeholder refers to all those that affect, or are affected by, the actions of the form. An important part of management's role is to identify a firm's relevant stakeholders and understand the nature of their interests, power, and alliances with one another. Building positive and mutually beneficial relationships across organizational boundaries can help ebhance a company's reputation and address critical social and ethical challenges. In a world or gast-paced globalization, shifting public expectations and fovernment policies, gprwing ecological concerns, and new technologies, manageers face the difficult challnege of achieving economic results while simultaenouslt creating value for all of their diverse stake holders.

Pg 27: The Interactive Social System

Business is a part of society, and society penetrates far and often into business decisions. Each needs the other, and each influecnes the other. In a world where global communication is rapidly expanding, the connections are closer than ever before. Throughout this book we discuss examples of organizations and people that are grappling with the challenges of, and helping to shape, business-society relationships. (one criticism I have on this book is that it harps on the environment having an impact on business, and that could be true for construction and other projects that need good weather conditions to operate but it is also important to note that the practices businesses have regarding their emissions and waste projected on the environment also gradually impacts how often it rains, the rising levels of heat, etc)

1-4 Conducting a stakeholder analysis and understanding the basis of stakeholder interests and power

Business organizations are embedded in networks involving many participants. Each of these participants has a relationship with the firm, based on ongoing interactions. Each of them shares, to some degree, in both the risks and rewards of the firm's activities. And each has some kind of claim on the firm's resources and attention, based on law, moral right, or both. The number of these stakeholders and the variety of their interests can be large, making a company's decisions very complex, as the Amazon example illustrates.

Students will be presented a case study of an ethical issue in a business and be asked to respond in writing, creating a proposed course of action, and defending it through the application of a selected ethical framework. Submissions should be two pages in length, double spaced, and size 12 font. A rubric for assessment is made available in Canvas and students should review this to establish and guide expectations.

Case Study Analysis

week #1 , 5/13/2024

Chapter 1 - The Corporation and Its Stakeholders Chapter 2 - Managing Public Issues and Stakeholder Responsibility Chapter 5 - Ethics and Ethical Reasoning

week #2 , 5/20/2024

Chapter 4 - Business in a Globalized World Chapter 3 - Corporate Social Responsibility and Citizenship Chapter 6 - Organizational Ethics

week #3 , 05/27/2024

Chapter 9 - Sustainable Development and Global Business Chapter 10 - Managing for Sustainability Chapter 14 - Consumer Protection

interactive social system,6

Every business firm has economic and social relationships with others in society. Some are intended, some unintended; some are positive, others negative. Stakeholders are all those who affect, or are affected by, the actions of the firm. Some have a market relationship with the company, and others have a nonmarket relationship with it; some stakeholders are internal, and others are external.

Voting power means that the stakeholder has a legitimate right to cast a vote. Share- holders typically have voting power proportionate to the percentage of the company's stock they own. They typically have an opportunity to vote on such major decisions as mergers and acquisitions, the composition of the board of directors, and other issues that may come before the annual meeting. (Shareholder voting power should be distinguished from the voting power exercised by citizens, which is discussed below.)

For example, Starboard Value LP, a New York-based hedge fund, used its voting power as a shareholder to force change in a company it had invested in. Starboard bought more than 10 percent of the shares of Mellanox Technologies, an Israeli semiconductor company, and called for radical change, slamming management for "weak execution," "excessive spending," and "missed growth opportunities." When Mellanox did not respond aggressively enough, in 2018 Starboard and its allies fielded their own slate of nominees in the election for the board of directors and organized support from other voting shareholders. The company eventually com- promised with Starboard, agreeing to add two of the activists' nominees to the board and a third if performance goals were not met. In recent years, activist inves- tors like Starboard Value have won one board seat for every two board election campaigns they have waged.21

Consumers' ability to use social networks to express their views about businesses they like—and do not like—has given them power they did not previously have.

For example, Yelp Inc. operates a website where people can search for local businesses, post reviews, and read others' comments. In 2016, a dozen years after its launch, Yelp attracted 145 million unique visitors every month. Its reviewers collectively have gained considerable influence. Restaurants, cultural venues, hair salons, and other establishments can attract customers with five-star ratings and "People Love Us on Yelp" stickers in their windows—but, by the same token, can be badly hurt when reviews turn nasty. A Harvard Business School study reported that a one-star increase in an independent restaurant's Yelp rating led to a 5 to 9 percent increase in revenue. Some businesses have complained that Yelp reviewers have too much power. "My business just died," said the sole proprietor of a housecleaning business. "Once they locked me into the 3.5 stars, I wasn't getting any calls."22

Stakeholder coalitions

Groups that are highly involved with a company today may be less involved tomorrow. Issues that are controversial at one time may be uncontroversial later; stakeholders that are dependent on an organization at one time may be less so at another. To make matters more complicated, the process of shifting coali- tions does not occur uniformly in all parts of a large corporation. Stakeholders involved with one part of a large company often have little or nothing to do with other parts of the organization.

Other stakeholders also have some market and some nonmarket characteristics. For example, business support groups, such as the Chamber of Commerce, are normally con- sidered a nonmarket stakeholder.

However, companies may support the Chamber of Com- merce with their membership dues—a market exchange. Communities are a nonmarket stakeholder, but receive taxes, philanthropic contributions, and other monetary benefits from businesses. These subtleties are further explored in later chapters.

The classification of government as a nonmarket stakeholder has been controversial in stakeholder theory. Most theorists say that government is a nonmarket stakeholder (as does this book) because it does not normally conduct any direct market exchanges (buying and selling) with business.

However, money often flows from business to government in the form of taxes and fees, and sometimes from government to business in the form of subsidies or incentives. Moreover, some businesses—defense contractors for example—do sell directly to the government and receive payment for goods and services rendered. For this reason, a few theorists have called government a market stakeholder of business. And, in a few cases, the government may take a direct ownership stake in a company—as the U.S. government did after the financial crisis of 2008-09 when it invested in several banks and auto companies, becoming a shareholder of these firms. Government also has special influence over business because of its ability to charter and tax corporations, as well as make laws that regulate their activities.

Stakeholder Mapping Once managers have conducted a stakeholder analysis, they can use it to develop a stakeholder map, a visual representation of the relationships among stakeholder inter- ests, power, and coalitions with respect to a particular issue.26 (A stakeholder map can also be used to represent stakeholder salience, to help a firm identify which stakeholders may require more of their attention.) Consider the following example:

In Anaheim, California, a real estate developer called SunCal purchased a large lot near to the Disneyland theme park. SunCal planned to build condominiums, with 15 percent of the units set aside for below-market-rate rental apartments. Because the site was in the resort district, the developer required special permission from the city council to proceed. Affordable housing advocates quickly backed SunCal's plans. Some unions representing Disney employees also supported the idea, as did environmentalists drawn by the prospect of reducing long commutes, a contributor to the region's air pollution. Disney, however, strenuously opposed SunCal's plan, arguing that the land should be used only for tourism-related development such as hotels and restaurants; the company was supported by the chamber of commerce and various businesses in the resort district. The city council itself was split.

On the contrary, interactions with such groups can be critical to a firm's success or failure, as shown in the following example

In late 2017, a company called Energy Management Inc. (EMI) said it would finally call off its sixteen-year effort to build a wind farm off the shore of Cape Cod, Massachusetts, to supply clean, renewable power to New England customers. The project, called Cape Wind, had generated intense opposition from residents of Cape Cod and nearby islands, who were concerned that its 130 wind turbines would spoil the view and get in the way of boats. A nonprofit group called Save Our Sound filed dozens of lawsuits, charging possible harm to wildlife, increased electricity rates, and danger aircraft. Local utilitites had withdrawn their commitments to buy power from the wind farm, and state regulaators had denied permission for a power line connection to the mainland. "We were kept in a repeated sudden death period," said the company's discouraged owner, using a football analogy. "And the goal posts kept moving."

LO 1-6: Analyzing the forces of change that continually reshape the business and society makeup

Managers make good decisions when they consider the effects of their decisions on stakeholders and stakeholders' effects on the company. On the positive side, strong relationships between a corporation and its stakeholders are an asset that adds value. On the negative side, some companies disregard stakeholders' interests, either out of the belief that the stakeholder is wrong or out of the misguided notion that an unhappy customer, employee, or regulator does not matter. Such attitudes often prove costly to the company involved. Today, companies know they cannot locate a factory or store in a strongly object community. They also know that making a perceived unsafe product invites lawsuits and jeopardizes market share.

Boundary-spanning departments, 19

Modern corporations have developed a range of boundary-crossing departments and offices to manage interactions with market and nonmarket stakeholders. The organi- zation of the corporation's boundary-spanning functions is complex. Most companies have many departments specifically charged with interacting with stakeholders.

nonmarket stakeholders

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 actions. --Nonmarket stakeholders are not necessarily less important than others, simply because they do not engage in direct economic exchange with a business.

week #1 , 5/13/2024

Please see Canvas for published due dates:

week #2 , 5/20/2024

Please see Canvas for published due dates:

week #3 , 05/27/2024

Please see Canvas for published due dates:

The instrumental argument for stakeholder theory

Says that stakeholder management is more effective as a corporate strategy. A wide range of studies have shown that companies that behave responsibly toward multiple stakeholder groups perform better financially, over the long run, than those that do not. --Attention to stakeholders' rights and concerns can help produce motivated employees, satisfied customers, committed suppliers, and supportive communities, all good for the company's bottom line

LO 1-2 : Considering the purpose of the modern corporation

Shareholder theory of the firm: also referred to, occasionally, as the ownership theory, the firm is seen as the property of its owners. -- The firm's purpose is to maximize its long-term market value, that is, to make the most money it can for shareholders who own stock in the company. -- Managers and boards of directors are agents of shareholders and have no obligations to others other than those directly specified by law. In this view, owners' interests are paramount and take precedence over the interests of others. The Stakeholder Theory of the Firm argues that corporations serve a broad public purpose: to create value for society - the complete contrary to the Shareholder Theory of th Firm -Corporations create many other kinds of value as well, such as professional development for their employees and innovative new products for their customers. -In this view, corporations have multiple obligations, and all stakeholders' interests must be taken into account.

Growing emphasis on ethical reasoning and actions.

The public also expects business to be ethical and wants corporate managers to apply ethical principles or values—in other words, guidelines about what is right and wrong, fair and unfair, and morally correct—when they make business decisions. Fair employment practices, concern for consumer safety, contribution to the welfare of the community, and human rights protection around the world have become more prominent and important. Business has created ethics programs to help ensure that employees are aware of these issues and act in accordance with ethical standards. The ethical challenges faced by business, both domestically and abroad—and business's response—are discussed in Chapters 5 and 6.

Evolving government regulations and business response.

The role of government has changed dramatically in many nations in recent decades. Governments around the world have enacted a myriad of new policies that have profoundly constrained how business is allowed to operate. Government regulation of business periodically advances and then retreats, much as a pendulum swings back and forth. Because of the dynamic nature of this force, business has developed various strategies to influ- ence elected officials and government regulators at federal, state, and local levels. Companies may seek to be active participants in the political process, and in recent years the courts have given them more opportunities to do so. The changing role of government, its impact, and business's response are explored in Chapters 7 and 8.

Case Study Analysis

There will be 3 exams scheduled during the semester, one at the end of each week. The final exam (Exam #3) is not comprehensive. All material covered in class, assigned textbook readings, Internet materials, and videos are covered on the exams. Exams will be open for 72 hours each (except for the last one); they will open at midnight and close at 11:59 p.m. on the days identified in the course schedule. The dates are posted on the syllabus and students are expected to adjust their schedules to be able to take the exams. Exams are 50 questions long. Students will have sixty minutes for each exam. At the end of the sixty minutes the exam will automatically submit with whatever answers have or have not been selected. You cannot start and stop exams. Exams are not open book or open note; no outside assistance is allowed. Students are expected to study beforehand and use this knowledge to take the exams. All exams and quizzes require the student to be able to successfully use the Lock-Down Browser with a webcam.

Quizzes

There will be quizzes on the mini-cases assigned during the semester. Mini-cases are 1-3 pages in length and are at the end of each assigned chapter. Students are encouraged to read, analyze, and prepare the discussion questions with each case prior to taking each quiz. All quizzes are accessed online through Canvas and can be found under the Quizzes link in the navigation bar. Quizzes are available for 24 hours and will open at midnight and close at 11:59 p.m. on the days identified in the syllabus. Quizzes are ten questions. Students will have twelve minutes for each quiz. At the end of the twelve minutes the quiz will automatically submit with whatever answers have or have not been selected. You cannot start and stop quizzes. There will be six (6) mini-case quizzes given throughout the semester, in addition to a quiz over the syllabus. Quizzes are not open book or open note; no outside assistance is allowed. Students are expected to study beforehand and use this knowledge to take the quizzes. All exams and quizzes require the student to be able to successfully use the Lock-Down Browser with a webcam.

Discussion Board

There will be two (2) discussion boards that students are required to participate in. These discussion boards present students with a "mini-case" and ask them to respond to a prompt related to the case. Requirements for each discussion post will appear with the prompt in the module on Canvas. Students must make critical and meaningful responses to at least two other postings made by their peers.

Exhibit 1.A, Are Managers Stakeholders?

This has been a contentious issue in stakeholder theory. -- In U.S. law, managers are considered fiduciaries of the owners of the firm (its shareholders) and have an obligation to run the business in their interest. -These legal concepts are clearly consistent with the shareholder theory of the firm -- In short, while the law requires managers to act on behalf of shareholders, it also gives them wide discretion- and in some instances requires them- to manage on behalf of the full range of stakeholder groups.

How are coalitions likely to form? Not surprisingly, stakeholder interests often coincide. For example, consumers of fresh fruit and farmworkers who harvest that fruit in the field may have a shared interest in reducing the use of pesticides, because of possible adverse health effects from exposure to chemicals. When their interests are similar, stakeholders may form coalitions, temporary alliances to pursue a common interest. Companies may be both opposed and supported by stakeholder coalitions, as shown in the example of the controversial Keystone XL pipeline.

TransCanada, a major North American energy company, sought approval to build a pipeline from Alberta, Canada, to Steele City, Nebraska, where it would connect to existing pipelines running to refineries and ports along the Gulf Coast. In opposing the Keystone XL pipeline, environmentalists argued it would enable the export of oil extracted from Canadian tar sands, an energy-intensive and dirty process. When burned, the tar sands oil would release carbon dioxide, contributing to further cli- mate change, and spills from the pipeline could foul water supplies. They were joined in coalition by other groups, such as ranchers, farmers, and Native Ameri- cans whose land would be crossed by the pipeline. On the other side, construction unions, many local governments, and business groups supported the pipeline, say- ing that it would create jobs, reduce U.S. dependence on foreign oil, and provide a safer method of transport than trains or tanker trucks. In 2018, debate still raged, and construction on the project had not begun.24

Governments exercise political power through legislation, regulations, or lawsuits.

While government agencies act directly, other stakeholders use their political power indirectly by urging the government to use its powers by passing new laws or enacting regulations. Citizens may also vote for candidates that support their views with respect to govern- ment laws and regulations affecting business, a different kind of voting power than the one discussed above. Stakeholders may also exercise political power directly, as when social, environmental, or community activists organize to protest a particular corporate action.

The Shareholder Theory of the Firm (pg 27)

also referred to, occasionally, as the ownership theory, the firm is seen as the property of its owners. -- The firm's purpose is to maximize its long-term market value, that is, to make the most money it can for shareholders who own stock in the company. -- Managers and boards of directors are agents of shareholders and have no obligations to others other than those directly specified by law. In this view, owners' interests are paramount and take precedence over the interests of others.

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. - shareholders invest in the firm and in return receive of interest and principal.

role sets

example: A person may work at a company, but also live in the surrounding community, own shares of company stock in his or her time . This person has several stakes in a company's actions.

Business Ethics Students are introduced to the types of ethical conflicts that occur in the workplace, the reasons behind these conflicts, and methods for resolving them. The profile of a sound corporate ethics program is introduced. Students will be challenged to analyze current ethical conflicts highlighted in the press. Ethical conflicts in the workplace are analyzed using the stakeholder management framework. Objectives for this section include:

i The ability to identify an organization's stakeholders. ii The ability to recognize and present alternatives to ethical conflicts in the workplace. iii The ability to present an argument for the strategic advantages of good business ethics. iv The ability to recognize a well-developed corporate ethics program. v The ability to recognize and analyze current events in the business world related to ethics.

III. Stakeholder Management In-Depth This final section of the course goes into depth on issues and management challenges with key stakeholder groups while operating in a globalized world. Students will learn methods for managing these issues proactively to maintain good corporate citizenship. Objectives for this section include:

i The ability to identify the influence of an issue/policy/program/decision on each of a firm's key stakeholder groups. ii Recognition of the importance of business/government relations. iii The ability to understand a public or social issue and the influence it can have on a firm's reputation and operations. iv The ability to recognize and respond to issues that are important to various stakeholder groups, including consumers, employees, and the community. v The ability to identify strategies for managing issues or crises, including media relations. vi The ability to understand current complex public issues like environmental affairs.

This course will give students an understanding of the strategic purposes of the firm as both a social and economic entity within society. The course is divided into three sections: 1. Business Ethics 2. Corporate Social Responsibility 3. Stakeholder Management In-Depth A case-based approach is used that applies ethical frameworks and theory to a wide range of business behaviors in the real world. Students will learn to apply ethical frameworks to select and defend actions within an organizational framework.

i The ability to present an argument for the strategic advantages of good corporate citizenship. ii The ability to social audit, otherwise known as evaluating a company's performance in relation to stakeholder responsiveness and management. iii The ability to recognize the need for change in corporate citizenship strategies and the profile of a firm with a progressive approach. iv The ability to identify the influence of an issue/policy/ program/decision on each of a firm's key stakeholder groups.

Stakeholders have legal power when they bring suit against a company for damages, based on harm caused by the firm; for instance,

lawsuits brought by customers for damages caused by defective products, brought by employees for damages caused by workplace injury, or brought by environmentalists for damages caused by pollution or harm to species or habitat. After the mortgage lender Countrywide collapsed, many institutional share- holders, such as state pension funds, sued Bank of America (which had acquired Country- wide) to recoup some of their losses.

stakeholder power, 13

means 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.

A basis for both the shareholder and stakeholder theories of the firm exists in law. The legal term _______________ means a person who exercises power on behalf of another, that is, who acts as the other's agent.

pg28 - Fiduciary

stakeholder, 8

refers to persons and groups that affect, or are affected by, an organization's decisions, policies, and operations. -- In the context og management theory, srake, is used more abstractly to mean an interest in-- or claim on- a business enterprise.

The normative argument (pg28)

says that the stakeholder management is simply the right thing to do. Corporations have great power and control vast respurces; these priveleges carry with them a duty toward all those affected by a corporation's actions. --moreover, all stakeholders, not just owners, contribute something of value to the corporation's actions. Moreoverm all stakeholders, not just owners, contribute something of value to the corporation. A ski

informational power

stakeholders have this when they have access to valuable data, facts, or details and are able to bring their own information and perspectives to the atten- tion of the public or key decision makers. With the explosive growth of technologies that facilitate the sharing of information, this kind of stakeholder power has become increas- ingly important.

Voting power

the stakeholder has a legitimate right to cast a vote. Shareholders typically have voting power proportionate to the percentage of the company's stock they own. -They typically have an opportunity to vote on such major decisions as mergers and acquisitions, the composition of the board of directors, and other issues that may come before the annual meeting.