Identification + Management

Question 1

What is the leading theory in stakeholder management?

Answer 1

Porters 5 forces

Question 2

What changes are happening within stakeholder management?

Answer 2

• Functions on two levels, corporate strategy + business strategy
• Shift away from shareholder value (profits) to stakeholder value

Question 3

What are the advantages of stakeholder theory?

Answer 3

1. Combines strategy + ethics, attempts to analyse the purpose of economic action
2. Represents management + governance in terms of negotiation + deliberation about creation value
3. Focuses on economic activity and strategy in relation to business environment

Question 4

What is stakeholder theory strategy?

Answer 4

Making choices

Being aware of interactions between corporation, environment, existing / potential resources

Question 5

What do advocates of the theory argue?

Answer 5

The theory allows strategic managerial approaches which in turn allows planning, system theory, CSR and organisational theory

Question 6

What are the criticism of stakeholder theory and management?

Answer 6

Stakeholder theory is merely an operational model for businesses and is too idealised