COM 445 Chapter 1: TOWARD A THEORY OF STAKEHOLDER IDENTIFICATION AND SALIENCE- DEFINING THE PRINCIPLE OF WHO AND WHAT REALLY COUNTS

• School: University of Victoria
• Department: Commerce
• Course: COM 445
• Professor: Sorin

Document Summary

Toward a theory of stakeholder identification and salience: defining the principle of. Stakeholder theory: anyone can affect or be affected by an organization"s actions. Freeman"s definition of stakeholder = any group or individual who can affect or is affected by the achievement of the organization"s objectives . Explains why managers should consider certain classes of entities as stakeholders. Explains conditions under which managers do consider certain classes of entities as stakeholders. * salience= the degree to which managers give priority to competing stakeholder claims. Low salience classes (areas 1, 2, 3) = latent" stakeholders. Moderately salient stakeholders (areas 4, 5, 6) = expectant" stakeholders. Highly salient stakeholders = combination of all three attributes: dormant stakeholders: possesses power, no legitimate relationship/ urgent claim, discretionary stakeholders: legitimacy, no power/ urgent (discretionary social responsibility -> corporate philanthropy)