MGMT 1040 Chapter Notes - Chapter 3: Joint Venture, Stakeholder Theory, Crisis Management
26 Sep 2016
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No sector has complete control, but it can pursue it"s own interest. Benefit: society is protected from dominance of one group. Identity stakeholders to: obtain resources (they have rare resources, maintain the legitimacy of the business in society. Behave in a way that would please your stakeholders. Two way street: we influence stakeholders, they influence us. Complexity of business due to changing relationships between us and our stakeholders. Invested in the company through shares: more shares in a business = greater power over the business. Role: determine strategic direction, review performance, hire/fire executives. Employees: unions: want wage concessions during recessions o. Company pension plans for people who want to retire: need to hire underrepresented classes o. Issue: misleading advertising where producers influence consumers, instead of vice versa. Lenders and creditors: a lot of influence: if debt not paid, they can seize assets. If company goes bankrupt: company seizes these assets o.
