3 - Stakeholder Analysis

Question 1

3 views of the firm

Answer 1

Production – owners thought of stakeholders as those that supplied resources/bought products and services.

Managerial – in addition to production view, owners and employees were considered.

Stakeholder – manages had conceptual shift in firm perception and multilateral relationships with stakeholders groups

Question 2

Stakeholder theories

Answer 2

Descriptive – describe and explain corporate characteristics. Trends in legislation, jurisdiction, and practising management have increasingly adopted a stakeholder approach.

Normative – morrow, philosophical guidelines for the operation and management of corporations. Each stakeholder has the right to be treated as an end in itself.

Instrumental – explain Corporate financial and market before mints. Firms that adhere to stakeholder principles have higher performance.

Question 3

1. Who are the firms stakeholders?

Stakeholder classification

Answer 3

Primary social stakeholders – direct stake in org, engage in economic transactions with company as it carries out its primary purpose of providing society with goods and services, e.g. shareholders, employees.

Primary non-social – environment, future generations.

Secondary social stakeholders – indirect state in organisation, for example: government, media.

Secondary nonsocial – environmental interest groups, animal welfare organisations.

Question 4

2. What are the stakeholders stakes?

Stakeholder attributes

Answer 4

Legitimacy – perceived visibility/appropriateness of stakeholders claim to a steak

Power – ability/capacity of a stakeholder to produce an effect

Urgency – degree to which stakeholders clean demand immediate attention/response

Proximity- spatial distance between organisation and its stakeholders

*** stakeholder salience model. LEARN

Question 5

3. What opportunities and challenges do our stakeholders present?

Answer 5

Opportunities – businesses to build decent, productive, working relationships with stakeholders

Challenges- usually demands, expectations, boycotts, threats

Potential for threat – consider stakeholder power and relevance to particular issues

Potential for cooperation – sensitive to possibility of joining forces with stakeholders for advantage to all parties involved

Question 6

4. What responsibilities does the phone have towards its stakeholders?

Answer 6

Refer to stakeholder salience model.

List of stakeholders and their expectations, for example: employees – fair pay and good working conditions.

Refer to stakeholder responsibility matrix

Question 7

5. What strategies/actions should management take?

Answer 7

Do we deal directly or indirectly with stakeholders?
Do we take offence/defence in dealing with stakeholders?
Do we accommodate, negotiate, manipulate, or resist stakeholder overtures?
Do you employ a combination or pursue a singular course of action?

Question 8

Stakeholder management capability (SMC)

Answer 8

Organisation integration of stakeholder thinking into its processes and may reside at one of three levels of increasing sophistication: rational, process, transactional.