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Stakeholder Analysis Flashcards

(24 cards)

Study These Flashcards
1
Q

what is the difference between the stakeholder and the market capitalism model?

A

relationship between the entities in the model (ethics - what they see as right)

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2
Q

why is the stakeholder model better in practice than the market capitalism model? who said that?

A
  • it pays off (higher profits)
  • it is the right thing to do (ethically)
    Freeman
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3
Q

define corporate governance

A

structures and systems of control by which managers are held accountable to stakeholders

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4
Q

define the models of governance for stakeholder model and for market capitalism model.
what are their main goals?

A

MC: shareholder model. profit first

stakeholder model: stakeholder model. ‘win-win’ situations

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5
Q

state 7 characteristics of the shareholder (MC) governance model.

A
  1. unabmiguous focus
  2. increased enterpreneurship
  3. easier decision-making
  4. principal-agent problem (aligining interests)
  5. short-terminisim
  6. vulnerable minority shareholders
  7. threatened legitimacy (the society’s perception of company’s legitimacy is hard to get/keep with this model)
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6
Q

state 7 characteristics of the stakeholder governance model

A
  1. long-term orientation
  2. less reckless risk-taking (careful decisions)
  3. reduced entrepreneurship
  4. inclusive management
  5. difficult decision-making (many stakeholders + interests + issues + goals)
  6. uneconomic investments
  7. gained legitimacy (easier)
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7
Q

state 4 types of corporate governance stances

A
  1. laissez-faire
  2. enlightened self-interest
  3. forum for stakeholder interaction
  4. shaper of society
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8
Q

state the following characteristics for the governance stance laissez-faire:

  • key idea
  • type of leadership
  • level of management importance
  • type of external interaction
  • stakeholder relationship
A
  • legal compliance (make profit, pay taxes)
  • peripheral leadership
  • responsibility on middle-management
  • defensive to outside pressures
  • unilateral relationship (only one group / stakeholder taken into consideration)
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9
Q

state the following characteristics for the governance stance enlightened self-interest:

  • key idea
  • type of leadership
  • level of management importance
  • type of external interaction
  • stakeholder relationship
A
  • sound business sense
  • supportive leadership
  • management sets up systems to ensure good practice
  • reactive to outside pressures
  • interactive relationship (to prevent conflicts)
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10
Q

state the following characteristics for the governance stance forum for stakeholder interaction:

  • key idea
  • type of leadership
  • level of management importance
  • type of external interaction
  • stakeholder relationship
A
  • triple bottom line = sustainable business
  • champion-style leadership
  • management board-level issue (organisation-wide monitoring)
  • proactive interactions
  • partnership with stakeholders
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11
Q

state the following characteristics for the governance stance shaper of society:

  • key idea
  • type of leadership
  • level of management importance
  • type of external interaction
  • stakeholder relationship
A
  • key is social and market change
  • visionary leadership
  • responsibility is on each individual throughout the organisation
  • defining external interactions
  • multi-organisation alliances with stakeholders
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12
Q

how did Freeman & Olson define business (throught the stakeholder model)? (exam Q)

A

business is a set of relationship amongst the groups that have a stake in that business.
it’s about how those groups interacte and create value.
to understand a business is to know how these relationships work.

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13
Q

def stakeholders

A

any group or individual who can affect or is affected by the achievement of an organisation’s purpose (potential beneficiaries or risk bearers)

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14
Q

state 6 examples of stakeholders

A
  1. employees
  2. government
  3. suppliers
  4. community (public)
  5. customers
  6. investors
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15
Q

what does stakeholder management do? (3)

A
  • identifies stakeholders
  • analyses their interests
  • plans and implements actions to engage w them
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16
Q

why is stakeholder management useful? (5)

Study These Flashcards
A
  • enchances ability to predict the environment
  • less incidents when stakeholders damage the company (e.g. strikes, bad press, boycotts)
  • less conflicts and legal suits
  • higher level of trust
  • increased organisational flexibility (fast response to crisis)
17
Q

state the 6 steps of stakeholder analysis

Study These Flashcards
A
  1. identify SH (primary/secondary, internal/external)
  2. investigate their interests / concerns
  3. evaluate relationship with organisation (mover=for sth / floater = indecisive / blocker = against sth)
  4. identify possible coalitions with others
  5. asses power and interest
  6. plan actions to manage them
18
Q

what are the 5 sources of internal stakeholders’ power?

Study These Flashcards
A
  1. hierarchy (formal) or influence (informal)
  2. control of strategic resources
  3. possession of knowledge / skills
  4. control of human environment
  5. involvement in strategy implementation
19
Q

what are the 4 indicators of internal stakeholders’ power?

Study These Flashcards
A
  1. status (rank)
  2. claim on resources (budget size)
  3. representation
  4. symbols (titles)
20
Q

what are te 4 sources of external stakeholders’ power?

Study These Flashcards
A
  1. control of strategic resources
  2. involvement in strategy implementation
  3. possession of knowledge / skills
  4. access to internal links
21
Q

what are the 4 indicators of external stakeholders’ power?

Study These Flashcards
A
  1. status
  2. resource dependence
  3. negotiating agreements
  4. symbols
22
Q

what are the 3 facilitators of stakeholder attention?

Study These Flashcards
A
  1. criticality of issue (if it is critical for the stakeholder)
  2. good channels of information
  3. high cognitive capacity of stakeholder
23
Q

what should a company do with each of these stakeholders? (power/interest grid)

  • low power, low interest
  • low power, medium - high interest
  • medium power, low - high interest
  • high power, low interest
  • high power, medium interest
  • high power, high interest
Study These Flashcards
A
  • ignore
  • keep informed
  • keep onside
  • watch
  • keep satisfied
  • manage actively
24
Q

what are the three levels of stakeholder engagement?

Study These Flashcards
A
  1. informing & explaining (one way communication - news, publications, reports)
  2. communicating & consulting (two way communciation, but only with purpose of gather info - conferences, social media, mass emails, surveys)
  3. involving, collaborating, partnerships, joint ventures (two way communiction - stakeholders’ involvement in decision-making)
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