Unit 2 - chapter 6 Flashcards
social responsibility definition
the duties a business has towards stakeholder groups such as employees, customers and the government
what are the 4 types of stakeholers
- primary
- secondary
- internal
- external
primary stakeholder definition
individuals or groups that are affected by a business’s activity
e.g:
customers, employees, creditors
secondary stakeholders defintion
individuals or groups that don’t have a direct functional or financial relationship with the business
what are internal stakeholders
part of the organisation
what are external stakeholders
exist outside the business e.g government and suppliers
what is the x and y axis on a stakeholder map
x = level of interest
y = power
how do we measure the importance of stakeholders
stakeholder map
market conditions definition
the number of features of a market, such as the level of sales, the rate in which they are changing and the strength of competitors
communication definition
the exchange of information or ideas between two or more parties
stakeholder engagement definition
process by which managers involve individuals and groups who may be affected by their decisions in those decisions
consultation definition
one group discovers the views of another
5 approaches to stakeholder management
- partnership
- participation
- consultation
- “push” communications
- “pull” communications
what is partnership
approaches to stakeholder management
- high power and high interest
- involves the stakeholder group
what is participation
approaches to stakeholder management
high-lower interest and high power
lesser partnership, 2 way communication but less responsibility
