Module 10 Flashcards
What are issues?
Issues are concerns related to a firm’s decisions and operations often with regards to environmental and social problems. Issues emerge in interaction between organizations and stakeholders.
What are the most important factors in identifying and analysing issues?
- Likelihood of existence and continance
- Ability to resolve
- Which key stakeholders are involved?
What are the strategic options in response to issues?
Reactive:
- Defensive: stonewalling or denying the issue
- Accommodative: Accommodating stakeholder concerns, often after pressure. Engagement in dialogue with stakeholders.
Proactive:
- Though leadership: taking positive leadership position in issue to benefit of stakeholders
What does the firm’s reaction to issues depend on?
- Intensity of issue
- Importance of issue to stakeholders
- Values and beliefs of managers about the organizations responsibility
Name the three types of stakeholders
- Equity stakeholders
- Economic stakeholders
- Influencer stakeholders
What are equity stakeholders?
Stakeholders with a form of ownership in the business. These are primary stakeholders
What are economic stakeholders?
These are stakeholders with economic but not equity stakes (employees, lenders, suppliers customers etc.)
Primary stakeholders
What are influencer stakeholder?
Stakeholders that do not have equity or economic stake but still have an interest. Secondary stakeholders
What is the difference between economic and stakeholder theory?
Economic theory suggests firms should maximize proftifts, whereas stakeholder theory assumes mutual relationships with all stakeholders in which there is societal and financial accountability
Explain the mapping out of stakeholders and their meaning?
- Low power or stake: minimal effort
- Low power high stake: keep informed
- High power low stake: keep satisfied
- High power and stake: key players
What is sustainability?
The ability to fulfill the present needs without damaging the ability of future generations to fulfill in future needs
What are human rights?
Rights that are attained because one is a human being.
What is triple bottom line?
Economic, societal and environmental performance fulfilling demands of all stakeholders
What is the instrumental view on CSR?
Treating stakeholders well may indirectly positively affect performance
What is a normative view on CSR?
Firms should be motivated because they have societal obligations?
What is shared value creation?
CSR approach trying to do good for both the firm and its stakeholders. Arises from long-term commitment
Name the two topics in which companies have to figure out social responsibility themselves?
- Environment
- Labour
What are pollution havens?
These are countries with lower environmental standards, put in place to attract businesses
What is the race to the bottom?
Competition among countries for FDI by reducing environmental standards (and becoming pollution havens)
What are labour standards?
Employment rules including hours, minimum wage etc.
What are footloose plants?
Factories that can relatively easy be relocated. This is often the case with labout intensive factories. This increases the bargaining power of companies.
What is Health, safety and environment?
This is a general term for areas for which common standards are established
What is compliance?
Compliance is the monitoring and enforcement of standards
What is compliance training?
Mandatory training to test the knowledge of relevant codes of conduct.
