The document discusses stakeholder relationships, social responsibility, and corporate governance. It provides details on three activities involved: 1) generating data on stakeholders and impacts, 2) disseminating information throughout the organization, and 3) the organization's responsiveness to stakeholder concerns. Key points include identifying relevant stakeholders and their concerns, evaluating impacts, facilitating communication of information to stakeholders, and ensuring the firm addresses stakeholder expectations.

1. Stakeholder Relationships, Social
Responsibility & Corporate Governance

2. “Degree to which a firm understands & addresses
stakeholders demands & concerns”
 Three set of activities are involved;
I. Generating data about stakeholders & impacts on them
II. Disseminating information throughout the organization
III. Organization’s responsiveness towards stakeholders’
concerns

3.  Identifying stakeholders that are relevant
 Characterizing their relevant concerns
 Online Forums
 Representatives
 Concerned Managers
 Evaluating impact

4.  Facilitating communication of information
 Distributing information about;
 Nature of relevant stakeholders
 Stakeholder issues
 Current impact on firm
 Distribution of information should be formally

5.  Consists of initiatives that a firm adopts to ensure that
it abides by or exceeds stakeholder expectations & has
a positive impact on stakeholders’ concerns
 Involving concerned stakeholders on Priority basis

6.  meeting overly aggressive financial or business
objectives
 meeting schedule pressures
 helping the organization survive
 rationalizing that others do it
 resisting competitive threats
 saving jobs

7.  personal values
 supervisor influence
 senior management influence
 internal drive to succeed
 performance pressures
 lack of punishment
 friends/coworker influence

8. I. Conflict of Interest
II. Honesty and Fairness
III. Communications
IV. Organizational Relationships

9.  exists when an individual must choose whether to
advance his/her own interests, the organization’s, or
others’
 Examples include bribes or personal payments, gifts,
or special favors intended to influence decision making

10.  following applicable laws a regulations & not
knowingly harming stakeholders
 Is advertising prescription drugs on TV and in
magazines fair?

11.  refers to the transmission of information and the
sharing of meaning
 Examples: deceptive advertising, product safety
information, & product composition

12.  behavior of organizational members toward
stakeholders
 Includes confidentiality, meeting obligations &
deadlines, not pressuring others to behave unethically

13.  Accounting
 Finance
 Management
 Marketing
 Human Resource

14.  CSR can improve profits?
 CSR can promote respect for their company in the
marketplace which can result in higher sales, enhance
employee loyalty and attract better personnel to the
firm
 CSR activities focusing on sustainability issues may
lower costs and improve efficiencies as well

15. Philanthropic: “giving back” to society
Ethical: following standards of acceptable
behavior as judged by stakeholders
Legal: abiding by all laws & government regulations
Economic: maximizing stakeholder wealth and/or value

16. Formal systems developed by organizations for
Accountability, Oversight & Control
 Accountability- How closely workplace decisions are aligned
with firm’s strategic goals & objectives
 Oversight- A system of checks and balances that limit
employees’ opportunities to deviate from firm’s goals
 Control- Process of auditing and improving organizational
decisions & actions

17.  Organizations should develop some processes for managing ethical
concerns of stakeholders
 The most effective process consists of following steps;
I. Assessing the Corporate Culture
II. Identifying Stakeholder Groups
III. Identifying Stakeholder Issues
IV. Assessing Organizational Commitment to Social Responsibility
V. Identifying Resources & Determining Urgency
VI. Gaining Stakeholder Feedback

18.  Must align with organization’s goals & objectives
 First step is to identify organizational mission, norms & values
 Sources -
 Mission Statement
 Annual Reports
 Sales brochures
 Websites
 “Example”

19.  Goal is to recognize stakeholder needs, wants &
desires
 Level of power may vary, depending upon the nature
of involvement of stakeholders
 Some Power vs. Most Power
 Example

20.  Understanding the nature of the main issues of concern
to the stakeholders
 Can be settled down through;
 Collaboration
 Negotiation
 “Example”

21.  How much the organization is inclined towards being socially
responsible?
 Brings first three stages together to arrive at a common
understanding of social responsibility
 Evaluating current practices
 Selecting concrete social responsibility initiatives
 Sources - Annual Reports, Webpages & Company Brochures

22.  Cost-Time ratio
 Two main criteria to be considered;
- Level of Financial & Organizational resources
- Level of urgency when prioritizing
 If an issue requires significant resources, it is to be
considered “Urgently”

23.  What is stakeholder’s level of satisfaction?
 Can be through various ways;
- Satisfaction & reputation Surveys
- Blogs, Websites & Newsletters
- Formal Research via focus groups, observation &
surveys