LIT 3.5 - Mitchell/Agle/Wood: stakeholder identificatio Flashcards
According to Mitchell, Agle, and Wood (1997), what is the aim of their article regarding stakeholder theory?
The aim of this article is to contribute to a theory of stakeholder identification and salience based on stakeholders possessing one or more of three relationship attributes: power, legitimacy, and urgency.
What fundamental question about stakeholders do Mitchell et al. highlight as lacking agreement in the literature?
There is no agreement on what Freeman (1994) calls ‘The Principle of Who or What Really Counts.’ This encompasses two key questions: who (or what) are the stakeholders of the firm? and to whom (or what) do managers pay attention?.
What is the broad definition of a stakeholder used as a starting point by Mitchell et al. (citing Freeman, 1984)?
A stakeholder is ‘any group or individual who can affect or is affected by the achievement of the organization’s objectives’.
According to Mitchell et al., what are the three key attributes used to identify different classes of stakeholders?
The three key attributes are: (1) the stakeholder’s power to influence the firm, (2) the legitimacy of the stakeholder’s relationship with the firm, and (3) the urgency of the stakeholder’s claim on the firm.
Define stakeholder power as described by Mitchell et al., drawing on Weber and Pfeffer.
Power is the ability of one actor (A) within a social relationship to get another actor (B) to do something that B would not otherwise have done. It can be recognised as the ability of those who possess power to bring about the outcomes they desire.
What are the three bases of power proposed by Etzioni (1964) and referenced by Mitchell et al.?
The three bases of power are: coercive power (based on physical resources), utilitarian power (based on material or financial resources), and normative power (based on symbolic resources).
How do Mitchell et al. define stakeholder legitimacy, drawing on Suchman (1995)?
Legitimacy is ‘a generalized perception or assumption that the actions of an entity are desirable, proper, or appropriate within some socially constructed system of norms, values, beliefs, and definitions’.
According to Mitchell et al., what two conditions must be met for a stakeholder claim to have urgency?
Urgency exists when (1) a relationship or claim is of a time-sensitive nature and (2) when that relationship or claim is important or critical to the stakeholder.
What is stakeholder salience as defined by Mitchell et al.?
Stakeholder salience is the degree to which managers give priority to competing stakeholder claims.
What are latent stakeholders in the typology proposed by Mitchell et al., and how many attributes do they possess?
Latent stakeholders possess only one of the three attributes (power, legitimacy, or urgency). They are considered to have low salience.
Describe dormant stakeholders according to Mitchell et al. Which attribute do they possess?
Dormant stakeholders possess power but lack legitimate relationships and urgent claims. Their power remains unused, and they have little or no interaction with the firm.
What characterises discretionary stakeholders in the Mitchell et al. typology? Which attribute do they hold?
Discretionary stakeholders possess legitimacy but have no power to influence the firm and no urgent claims.
What are demanding stakeholders defined by in the Mitchell et al. model? Which attribute do they possess?
Demanding stakeholders are defined by having urgent claims but lacking power and legitimacy.
What are expectant stakeholders in the Mitchell et al. framework, and how many attributes do they possess?
Expectant stakeholders possess two of the three attributes (power, legitimacy, and/or urgency). They have moderate salience.
Describe dominant stakeholders according to Mitchell et al. What two attributes do they possess?
Dominant stakeholders possess power and legitimacy. Their influence in the firm is assured.
What characterises dependent stakeholders in the Mitchell et al. model? What two attributes do they possess?
Dependent stakeholders possess legitimacy and urgency but lack power. They depend on other stakeholders or managers for the power to carry out their will.
Explain dangerous stakeholders as described by Mitchell et al. What two attributes do they possess?
Dangerous stakeholders possess power and urgency but lack legitimacy. They may use coercive or violent means.
What are definitive stakeholders in the Mitchell et al. typology, and what combination of attributes do they have?
Definitive stakeholders possess all three attributes: power, legitimacy, and urgency. They have high salience, and managers have a clear and immediate mandate to attend to their claims.
According to Mitchell et al., is stakeholder salience static or dynamic? How can it change?
Stakeholder salience is dynamic. Stakeholders can gain or lose attributes (power, legitimacy, urgency) over time, causing them to move from one stakeholder type to another.
What does Proposition 1 of Mitchell et al.’s theory state regarding stakeholder salience and the number of perceived attributes?
Proposition 1: Stakeholder salience will be positively related to the cumulative number of stakeholder attributes—power, legitimacy, and urgency—perceived by managers to be present.
