MNGT 3710 Lecture Notes - Lecture 3: Stakeholder Theory
Document Summary
Pluralistic society- is one where influence or power is decentralized by dispersing it among a variety of institutions: primary, shareholders, employees, creditors, suppliers, customers, competitors, wholesalers/retailers. Local communities: secondary, government, activist groups, media, business support groups, general public. Difficulty: stakeholders involvement and influence changes over time and varies among corporations. Normative stakeholders- the company has voluntarily accepted resources from them: financers, employees, consumers, suppliers. Derivative stakeholders- the company does not receive any direct from them: ngos, competitors. Examine how each stakeholder will or might influence firm. Prepare programs or policies detailing how to cope with stakeholders. Edward free(cid:373)a(cid:374)"s defi(cid:374)itio(cid:374) of stakeholders: an individual, or group, who can influence a(cid:374)d/or is i(cid:374)flue(cid:374)(cid:272)ed (cid:271)y the a(cid:272)hieve(cid:373)e(cid:374)t of a(cid:374) orga(cid:374)izatio(cid:374)"s purpose. Problems of categorization (e. g. , how to identify and prioritize stakeholders) Challenges in meeting expectations (e. g. , tradeoffs among the stakeholders) Dilution of top management focus (e. g. , away from financial performance) Impracticality of shared governance (e. g. , focus still on shareholders)
