Presentation on theme: "Learning Objectives Identify stakeholders’ roles in business ethics"— Presentation transcript: 1 Chapter 2 Stakeholder Relationships, Social Responsibility, and
Corporate Governance Show
2 Learning Objectives Identify stakeholders’ roles in business ethics 3 Learning Objectives (continued) 4 Relationships and Business
5 Stakeholders People who have a stake or claim in some aspect of a company’s operations, markets, and industry Approaches to
stakeholder theory Normative - Sets forth ethical guidelines that dictate how firms should treat stakeholders Descriptive - Focuses on the actual behavior of a firm and addresses how decisions and strategies are made for stakeholder relationships Instrumental - Describes what happens if a firm behaves in a particular way
6 Role of Stakeholders Foster decision making 7 Types of Stakeholders People whose support and resources are needed for a
firm’s survival Include employees, customers, and shareholders Primary stakeholders Do not engage directly in transactions with a company Not essential to a firm’s survival Include the media and trade associations Secondary stakeholders
8 Figure 2.2 - Interactions between a Company and Its Primary and Secondary Stakeholders
9 Stakeholder Orientation 10 Figure 2.3 - Steps of Social Responsibility
11 Corporate Citizenship 12 Issues in Social Responsibility 13 Importance of Stakeholder Orientation in Social Responsibility 14 Corporate Governance and
Stakeholders
15 Corporate Governance and Stakeholders (continued) 16 Models of Corporate Governance
17 Board of Directors Responsible for the ethics of a firm’s actions 18 Demand for Accountability and Transparency 19 Executive
Compensation
20 Steps to Implementing a Stakeholder Perspective What are the steps to implementing a stakeholder perspective?The steps include: assessing the corporate culture; identifying stakeholder groups; identifying stakeholder issues; assessing the organizational commitment to social responsibility; identifying resources and determining urgency; gaining stakeholder feedback.
What is the first step in implementing a stakeholder?The first step of a stakeholder analysis is to identify relevant stakeholder groups. Projects will typically involve a broad range of stakeholders. The stakeholder analysis needs to be initiated early to identify key stakeholder groups and individuals to be involved in the project planning process.
What is the purpose of a stakeholder orientation?Stakeholder orientation describes a pattern of social responsibility values, decision making or behavior where managers decide and act by including the interests of various groups of stakeholders like customers, employees, etc.
Why is it important for business to identify secondary stakeholders?Secondary Stakeholders' Importance
Secondary stakeholders are important to a company because they affect the company's reputation. Secondary stakeholders tend to be more vocal than primary stakeholders. Primary stakeholders are small groups compared to secondary stakeholders.
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