Chapter 5 Stakeholders and governance

Question 1

Who are the stakeholders ?

Answer 1

Stakeholders are those individuals or groups that depend on an organization to fulfill their own goals and on whom in turn the organisation depends.

Question 2

What are the five types of stakeholders ?

Answer 2

• Economic
• Social/political
• Technological
• Community
• Internal

Question 3

What is the power ?

Answer 3

Power is the ability of individuals or groups to persuade induce or coerce others into following particular strategies.

Question 4

What are the different ownership models ?

Answer 4

1 Publicity-quoted companies 
2 State-owned enterprises
3 Entrepreneurial businesses 
4 Family business 
5 Not-for organizations 
6 Partnerships 
7 Employee-owned firms

Question 5

What is the corporate governance ?

Answer 5

Is about the structures and systems of control by which managers are held accountable to those who have a legitimate skate in an organisation.

Question 6

What is the corporate social responsibility ?

Answer 6

Is the commitment by organisations to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as the local community and society at large.