Chapter 2 Flashcards
who is the agent
the director
who is the principal
a shareholder
different types of stakeholders
Internal (employees)
Connected (shareholders, customers etc)
External ( government/ public)
vertical axis of mendelow axis
power
horizontal of mendelow axis
interest
who is high interest and high power
key players
who is high interest and low power
keep informed
who is low interest and high power
keep satisfied
who is low interest and low power
minimal effort
if a stakeholder doesnt want to change anything. what are they
low interest - only high interest if a change is wanted
issues with mendelows axis
its subjective on who is who
doesn’t help if there are lots of key players
map is not static, interest will change for different people
pyramid of CSR from top to bottom
philanthropic
ethical ( not just law abiding but more than that)
legal
economic
advantages of having good CSR
attracts ethically concerned customers
good PR
good for shareholders long term
disadvantages of having good CSR
expensive
primary focus is to max SH wealth
difficult to measure results
what are the three P’s in AA1000 Standard
People - charitable donations
Profit - distributing profits differently, such as to the local community
Planet- waste management and recycling etc
