Lesson 3 - Making Sense of Stakeholders Flashcards
(18 cards)
What are the three attributes used to identify stakeholders?
Power, legitimacy, and urgency.
How is a stakeholder defined by Freeman (1984)?
Any group or individual who can affect or is affected by the achievement of the organizations
objectives
What is stakeholder salience?
The degree to which managers give priority to competing stakeholder claims.
What is urgency in stakeholder theory?
The degree to which stakeholder claims call for immediate attention, based on time sensitivity
and criticality.
How is legitimacy defined in stakeholder theory?
A generalized perception that the actions of an entity are desirable or appropriate within a socially
constructed system.
What does power refer to in stakeholder relationships?
The ability of stakeholders to impose their will on the firm through coercive, utilitarian, or
normative means.
What characterizes a ‘Dormant Stakeholder’?
Possesses power but lacks legitimacy and urgency
What characterizes a ‘Discretionary Stakeholder’?
Possesses legitimacy but lacks power and urgency
What characterizes a ‘Demanding Stakeholder’?
Possesses urgency but lacks power and legitimacy.
What are the three types of ‘Expectant Stakeholders’?
Dominant (Power + Legitimacy), Dependent (Legitimacy + Urgency), Dangerous (Power +
Urgency).
What characterizes a ‘Definitive Stakeholder’?
Possesses power, legitimacy, and urgency.
What makes stakeholder attributes dynamic?
Attributes like power, legitimacy, and urgency can change over time, and perceptions of them can
vary
Why is perception important in stakeholder salience?
Because managerial perception determines which stakeholders are given attention and
resources
What role do managers play in stakeholder theory?
Managers perceive and interpret stakeholder attributes and determine their salience
What are some perspectives for identifying stakeholders?
Responsibility, Influence, Proximity, Dependency, Representation
What is materiality?
The relevance and significance of an issue to an organization and stakeholders
What is the 5 part materiality test?
1) Short-term financial impacts 2) Policy commitment 3) Peer-based norms 4) Stakeholder behaviour and concerns 5) Societal norms
What are the eight levels of engagement?
Remain passive, monitor, inform, transact, consult, involve, collaborate, empower
