In what ways stakeholders related to business activities. Give examples of stakeholders   Differentiate between primary and secondary stakeholders in a business situation. Give examples of each by selecting companies known to you.   Illustrate what are the examples around you from your observation or read where companies that act in irresponsible manner towards the society/stakeholders. Give examples   What opportunities and challenges does business encounter with the stakeholders in their day to day relationship?

1. BBS 2044
BUSINESS & SOCIETY
GROUP : LILY
GROUP MEMBERS:
FARAH AINAA
NUR MASYITAH
RATHITHA DEWARAJAN
YASHNI YOGESWARAN
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2. Tutorial 1(2) - Discussion Questions
Stakeholders Management
 In what ways stakeholders related to business activities. Give
examples of stakeholders
 Differentiate between primary and secondary stakeholders in
a business situation. Give examples of each by selecting
companies known to you.
 Illustrate what are the examples around you from your
observation or read where companies that act in irresponsible
manner towards the society/stakeholders. Give examples
 What opportunities and challenges does business encounter
with the stakeholders in their day to day relationship?
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3. SUMMARY OF THE
CHAPTER
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4. Who are Business Stakeholders?
4
4
Stockholders Employees
Customers Community Competitors
Business Stakeholder Groups
Special-Interest
Suppliers Media
Groups
Society
General
Public

5. Three Views of the Firm
5
Production
View
Managerial
View
Stakeholder
View

6. Who Are Our Stakeholders?
 Owner
 Employees
 Government
 Customers
 Community
 Competitors
 Social Activist Groups
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© 2012 South-Western, a part of Cengage Learning

7. What Responsibilities Does a Firm Have to
its Stakeholders?
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• What responsibilities does a firm have in its
relationships with all stakeholders?
• Responsibilities are
 Economic
 Legal
 Ethical
 Philanthropic

8. Principles of Stakeholder Management
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• Also known as the “Clarkson Principles”
Key words
 Acknowledge
 Monitor
 Listen
 Communicate
 Adopt
 Recognize
 Work
 Avoid
 Acknowledge conflicts

9. 1. IN WHAT WAYS
STAKEHOLDERS RELATED TO
BUSINESS ACTIVITIES. GIVE
EXAMPLES OF
STAKEHOLDERS
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10. In what ways stakeholders related
to business activities.
To understand who your company’s stakeholders are, divide
people affected by your company into three groups : internal,
external and connected stakeholders.
Internal stakeholders
are those who own or
work at the company,
including partners,
board members and
employees.
External stakeholders are
those affected by the
performance of a
business, including the
local city government,
community residents,
nonprofits a business
sponsors or donates to
and the trade media.
Internal
stakeholders
External
stakeholders
Connected
stakeholeder
shareholders, vendors,
suppliers, retailers,
contractors, customers,
wholesalers, sales reps
and distributors.
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11. Give examples of stakeholders?
owners
employees
customers
community
governments
Social
activity
groups
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12. 12
2. DIFFERENTIATE BETWEEN PRIMARY
& SECONDARY STAKEHOLDERS IN A
BUSINESS SITUATION. GIVE EXAMPLES
OF EACH BY SELECTING COMPANIES
KNOWN TO YOU.

13. Stakeholder
 Primary Stakeholder is one
who is affected directly by
the performance of a
company. Several parties
considered to be a
company's stakeholders
are
 Stockholders
 Customers
 Suppliers
 Employees
 Creditors
 Secondary Stakeholder as
people or groups not
legally affiliated with a
corporation but that affect
or are affected by a
corporation's actions.
 Community
 Competitors
 Media
 Society
 General public
 Special interest group
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14. KFC
Secondary
stakeholder
Ministry
of
Media health
Trade
union Parents
Other
interest
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15. 15
3. ILLUSTRATE WHAT ARE THE EXAMPLES
AROUND YOU FROM YOUR OBSERVATION OR
READ WHERE COMPANIES THAT ACT IN
IRRESPONSIBLE MANNER TOWARDS THE
SOCIETY/STAKEHOLDERS. GIVE EXAMPLES?

16. A. Wal-Mart
 Often forced to work
overtime for zero pay.
 Deny its workers basic
rights, spending an
enormous amount of time and
money keeping unions out
including: $7,000 anti-union
camera packages, $30,000
undercover spy vans,
$100,000 24-hour anti-union
hotlines and a $7,000,000
rapid response team with a
corporate jet.
 Pushes its suppliers to go
lower and lower on their
wholesale prices.
 Broken one environmental
law:
 Fined for violating new
standards for stormwater
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17. B. ExxonMobil
 Well-known
environmental offense.
 Ranked sixth on the
Toxic 100 list of US
corporate air polluters.
 In 2001, ExxonMobil target
of a lawsuit by a human
rights group that accused
the company of actively
abetting human rights
abuses including torture,
rape and killings in
Indonesia.
 The case is still pending
until now (2009).
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18. C. Nestle
 Most of the cocoa used in
Nestle's products comes from
the Ivory Coast, a country known
for using illegal and forced
child labor in the production of
this commodity.
 Aggressive marketing
campaigns for their baby
formula in developing and poor
nations:
 Company markets its formula
under false pretenses.
 Millions of liters of the substance
were found to be contaminated
with harmful chemicals.
 Workers protest absurdly low
wages and unsafe working
conditions, they're simply fired
and replaced with new workers.
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19. QUESTION 4
What opportunities and
challenges does business
encounter with the stakeholders
in their day to day relationship?
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20. STAKEHOLD
ERS
OWNERS
MANAGERS
EMPLOYEES
CUSTORMERS
SUPPLIERS
LENDERS
COMMUNITY
GOVERNMENT
SOCIAL ACTIVITY GROUP
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21. BUSINESS
STAKEHOLDERS
Primary stakeholder : Who are the
direct stake in the organization and its
success.
Secondary stakeholders : Have a public
or special interest stake in the
organization that is more indirect
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22. OPPORTUNITIES
-Build productive working relationship with
stakeholders
- The potential for cooperation
CHALLENGES
-Representative of how the firm handles its
stakeholders.
-The potential for threat.
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