BA342 Final Exam: QUESTIONS WITH COMPLETE
SOLUTIONS A+ RATED
EAP Excellent Performance
Academic Integrity
Professional Behavior
Corporate Social Responsibility Language Check 50% of companies using "sustainability", 25%
using "CSR", 25% using other terminology
What 3 things do you need to grow in your career? - Ability to manage money
- Ability to manage people
- Understanding stakeholders
Dr. Michael Hastings Director of Corporate Citizenship for KPMG; Corporations and individuals
both have an impact. Organizations and individuals should both be thinking. Rapid change.
Stakeholders - "Big 5" Owners, Consumers, Employees, Government, Community
Stakeholders - Owners Private, corporate, institution
Stakeholders - Consumers Consumer activists, product liability
,Stakeholders - Employees Union, older, women, minority, activists
Stakeholders - Government Local, federal, state
Stakeholders - Community Environmental groups, public
Production View of the Firm Owners thought of stakeholders as only those individuals or groups
that supplied resources or bought products or services
Managerial View of the Firm Owners and employees acknowledged as stakeholders
Stakeholder View of the Firm Management must perceive as stakeholders not only those groups
that the management thinks have some stake in the firm but also those individuals and groups that
themselves think or perceive they have a stake in the firm
Primary Social Stakeholders Have a direct stake in the organization and its success and, therefore,
are most influential
- Shareholders and investors
- Employees and managers
- Customers
- Local communities
- Suppliers and other business partners
,Secondary Social Stakeholders May be extremely influential as well, especially in affecting
reputation and public standing, but their stake in the organization is more indirect or derived
- Government and regulators
- Civic institutions
- Social pressure/activist groups
- Media and academic commentators
- Trade bodies
- Competitors
Primary Nonsocial Stakeholders - Natural environment
- Future generations
- Nonhuman species
Secondary Nonsocial Stakeholders Include those who represent or speak for the primary
nonsocial stakeholders
- Environmental interest groups
- Animal welfare organizations
Important Stakeholder Attributes Legitimacy, power, urgency
Stakeholder Approaches Strategic, Multifiduciary, Synthesis
, Stakeholder Approaches: Strategic Views stakeholders primarily as factors to be taken into
consideration and managed while the firm pursues profits for its shareholders
Stakeholder Approaches: Multifiduciary Views stakeholders as more than just individuals or
groups who can wield economic or legal power
Stakeholder Approaches: Synthesis Holds that business does have moral responsibilities to
stakeholders but that they should not be seen as part of a fiduciary obligation
Three Values of the Stakeholder Model Descriptive, Instrumental, Normative
Descriptive Value It provides language and concepts to describe effectively the corporation or
organization in stakeholder inclusive terms
Instrumental Value It is useful in portraying the relationship between the practice of stakeholder
management and the resulting achievement of corporate performance goals
Normative Value Stakeholders are seen as possessing value irrespective of their instrumental use
to management
Who are the organization's stakeholders? Stakeholder identification stage --> must identify
generic groups and specific subgroups
SOLUTIONS A+ RATED
EAP Excellent Performance
Academic Integrity
Professional Behavior
Corporate Social Responsibility Language Check 50% of companies using "sustainability", 25%
using "CSR", 25% using other terminology
What 3 things do you need to grow in your career? - Ability to manage money
- Ability to manage people
- Understanding stakeholders
Dr. Michael Hastings Director of Corporate Citizenship for KPMG; Corporations and individuals
both have an impact. Organizations and individuals should both be thinking. Rapid change.
Stakeholders - "Big 5" Owners, Consumers, Employees, Government, Community
Stakeholders - Owners Private, corporate, institution
Stakeholders - Consumers Consumer activists, product liability
,Stakeholders - Employees Union, older, women, minority, activists
Stakeholders - Government Local, federal, state
Stakeholders - Community Environmental groups, public
Production View of the Firm Owners thought of stakeholders as only those individuals or groups
that supplied resources or bought products or services
Managerial View of the Firm Owners and employees acknowledged as stakeholders
Stakeholder View of the Firm Management must perceive as stakeholders not only those groups
that the management thinks have some stake in the firm but also those individuals and groups that
themselves think or perceive they have a stake in the firm
Primary Social Stakeholders Have a direct stake in the organization and its success and, therefore,
are most influential
- Shareholders and investors
- Employees and managers
- Customers
- Local communities
- Suppliers and other business partners
,Secondary Social Stakeholders May be extremely influential as well, especially in affecting
reputation and public standing, but their stake in the organization is more indirect or derived
- Government and regulators
- Civic institutions
- Social pressure/activist groups
- Media and academic commentators
- Trade bodies
- Competitors
Primary Nonsocial Stakeholders - Natural environment
- Future generations
- Nonhuman species
Secondary Nonsocial Stakeholders Include those who represent or speak for the primary
nonsocial stakeholders
- Environmental interest groups
- Animal welfare organizations
Important Stakeholder Attributes Legitimacy, power, urgency
Stakeholder Approaches Strategic, Multifiduciary, Synthesis
, Stakeholder Approaches: Strategic Views stakeholders primarily as factors to be taken into
consideration and managed while the firm pursues profits for its shareholders
Stakeholder Approaches: Multifiduciary Views stakeholders as more than just individuals or
groups who can wield economic or legal power
Stakeholder Approaches: Synthesis Holds that business does have moral responsibilities to
stakeholders but that they should not be seen as part of a fiduciary obligation
Three Values of the Stakeholder Model Descriptive, Instrumental, Normative
Descriptive Value It provides language and concepts to describe effectively the corporation or
organization in stakeholder inclusive terms
Instrumental Value It is useful in portraying the relationship between the practice of stakeholder
management and the resulting achievement of corporate performance goals
Normative Value Stakeholders are seen as possessing value irrespective of their instrumental use
to management
Who are the organization's stakeholders? Stakeholder identification stage --> must identify
generic groups and specific subgroups
