DETAILED ANSWERS (VERIFIED ANSWERS) ALREADY
GRADED A+
Stakeholder theory of the firm Ans✓✓✓Corporations serve a broad
public purpose: to create value for society.
Ownership theory of the firm Ans✓✓✓Firm is seen as the property of its
owners.
Market Stakeholders Ans✓✓✓Affected primarily in a financial way.
Nonmarket stakeholders Ans✓✓✓May have financial transactions, but
are primarily affected in other ways.
Stakeholder power Ans✓✓✓The ability to use resources to make an
event happen.
Sources of stakeholder power Ans✓✓✓- Voting Power
- Economic Power
- Political Power
- Legal Power
Factors that influence stakeholder salience Ans✓✓✓- Power
- Legitimacy
, - Urgency
Public Issue Ans✓✓✓Any issue that is of mutual concern to an
organization and one or more of its stakeholders.
Performance-expectations gap Ans✓✓✓A gap between what the firm is
doing and what stakeholders expect.
Steps of Issues Management Process Ans✓✓✓- Identify Issue
- Analyze Issue
- Generate Options
- Take Action
- Evaluate Results
Stages in the Business Stakeholder Relationship Ans✓✓✓- Inactive:
Ignore Stakeholder concerns
- Reactive: act only when forced to do so
- Proactive: try to anticipate stakeholder concerns
- Interactive: companies actively engage with stakeholders in an ongoing
relationship of mutual respect, openness, and trust.
Drivers of Stakeholder Engagement Ans✓✓✓- Goals
- Motivation
- Organizational Capacity