Stakeholder theory presentation
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Stakeholder theory proposes that businesses should consider the interests of all stakeholders - including customers, suppliers, employees, and investors - not just owners and shareholders. Introduced by Edward Freeman in 1984, it suggests that paying attention to stakeholders leads to greater overall profit. The theory is important because it influences how businesses think about corporate social responsibility and maintaining moral and honorable behavior in order to earn profits. While some criticism argues it needs refinement, stakeholder theory promotes the idea that without ethics, a business focused solely on profits can do more harm than good.
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An Introduction To Stakeholder Theory
There are two main theories of stakeholder management: Milton Friedman's theory that only shareholders matter, and Freeman's theory that all stakeholder groups are important to manage. Freeman argued that identifying and managing stakeholders is important for a corporation's consent to operate from the community. Key stakeholder groups include investors, employees, suppliers, customers, and governments. Effective stakeholder management involves identifying stakeholder groups, their interests, and priorities; communicating with them through appropriate channels; and integrating stakeholder analysis into strategic planning and issues management.
stakeholder theory.
This document discusses stakeholder theory and the responsibilities of corporations towards their various stakeholders. It defines stakeholder theory as a framework that addresses moral and ethical values in business management. A corporation has responsibilities towards both internal stakeholders like shareholders, employees, and management as well as external stakeholders like customers, suppliers, creditors, competitors, society, and the government. The document provides examples of specific responsibilities towards each stakeholder group and concludes that an ethical organization recognizes its duties towards all stakeholders.
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Stakeholder theory proposes that a corporation should consider the interests of all stakeholders, not just shareholders. The key stakeholders are shareholders/owners, employees, suppliers, customers, and the community. Traditionally, corporations were managed solely in the interests of shareholders, but stakeholder theory argues that corporations should consider the stakes and expectations of all stakeholder groups. This helps ensure the long-term viability of the corporation by managing relationships to benefit all stakeholders.
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Stakeholder theory defines stakeholders as groups who can affect or are affected by a company, including shareholders, customers, employees, and suppliers. It proposes that companies should consider the interests of these stakeholders, rather than just shareholders, and manage stakeholder relationships through defining who the stakeholders are and how they should be treated. While stakeholder theory provides guidance for ethical corporate management, it has been criticized for not fully reflecting how corporations actually operate in prioritizing profits over other stakeholders.
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stakeholder theory.
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Stakeholder theory proposes that a corporation should consider the interests of all stakeholders, not just shareholders. The key stakeholders are shareholders/owners, employees, suppliers, customers, and the community. Traditionally, corporations were managed solely in the interests of shareholders, but stakeholder theory argues that corporations should consider the stakes and expectations of all stakeholder groups. This helps ensure the long-term viability of the corporation by managing relationships to benefit all stakeholders.
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Corporate governance involves the relationships between a company's management, board of directors, shareholders, and other stakeholders. It is the system by which companies are directed and controlled. Stakeholders are people or groups that can affect or be affected by a company's actions, including employees, suppliers, customers, and local communities. Shareholders own shares of stock in a company and have an ownership interest. Good corporate governance balances the interests of shareholders and stakeholders.
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Stakeholder theory defines stakeholders as groups who can affect or are affected by a company, including shareholders, customers, employees, and suppliers. It proposes that companies should consider the interests of these stakeholders, rather than just shareholders, and manage stakeholder relationships through defining who the stakeholders are and how they should be treated. While stakeholder theory provides guidance for ethical corporate management, it has been criticized for not fully reflecting how corporations actually operate in prioritizing profits over other stakeholders.
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Enter the World of BusinessWarren Buffet The Oracle of OmahaW.docx
Enter the World of Business
Warren Buffet: The Oracle of Omaha
Warren Buffett did not change his life plans when he was rejected by Harvard. An avid reader with a photographic memory, he persevered. He researched other universities and discovered that Benjamin Graham, the author of the The Intelligent Investor, was a professor at Columbia University. He immediately enrolled there, was accepted, and became the star pupil and eventual partner of the famous Graham. After graduating, Buffett started a lucrative career, taking ownership in companies that he believed would do well in business.
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LO 1-1
Define basic concepts such as business, product, profit, and economics.
Introduction
We begin our study of business in this chapter by examining the fundamentals of business and economics. First, we introduce the nature of business, including its goals, activities, and participants. Next, we describe the basics of economics and apply them to the U.S. economy. Finally, we establish a framework for studying business in this text.
The Nature of Business
A business tries to earn a profit by providing products that satisfy people’s needs. The outcomes of its efforts are products that have both tangible and intangible characteristics that provide satisfaction and benefits. When you purchase a product, you are buying the benefits and satisfaction you think the product will provide. A Subway sandwich, for example, may be purchased to satisfy hunger, while a Honda Accord may be purchased to satisfy the need for transportation and ...
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Passage to Answer the Question
What Is Ethics?
Ethics
is simply the principles of right and wrong and the morality of the choices involved.
Now, it's also important to define what ethics is
not
. Ethics is not emotions or religion. It's not science or norms of a society, necessarily. It's also not simply following the law, because it's perfectly acceptable to follow the law yet be an unethical person.
term to know Ethics The principles of right and wrong and of the morality of the choices
1a. Business Ethics
Business ethics
is closely tied to what ethics is. It's the principles of right and wrong of the morality of the choices made in the
business
world. Essentially, what we're doing is taking the principles or the definition of ethics and applying it to business.
hint Whether you're looking at business ethics or other types of ethics, ethical people will always follow the same ethical principles
all the time
, not just when it suits them.
term to know Business Ethics The principles of right and wrong and of the morality of the choices made in the business world
1b. Managerial Ethics
Managerial ethics
is simply ethics again. It is the principles of right and wrong and of the morality of the choices made in the context of
management
.
Managerial decisions impact employee behavior. How you hire or fire, the wages that you pay, or the working conditions at your business are all ethical decisions, and they can greatly impact employee attitudes and productivity.
Managerial ethics decisions can also impact behavior toward an organization. Do you have conflicts of interest or allow them? A
conflict of interest
is simply a circumstance in which the judgment of an individual or group may be impaired because of a difference in primary or secondary interest.
Is customer information kept confidential?
Confidentiality
is simply keeping private trusted data out of the hands of the public and other people who don't need to see it.
think about it We hand our personal information, like credit card numbers, to a lot of different people online when we are shopping. What do you think it would do for a business if we suddenly found out that our information wasn't as confidential as we thought it was? That would have a big impact on that particular business.
Collusion
is an attempt by business to conspire to the detriment of customers, businesses, or the general public.
Lastly, managerial ethics decisions can also impact behavior toward economic agent.
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Stakeholder theory presentation
- 1. What to Know About Stakeholder Theory Amelia Marlowe
- 2. Have you ever wondered why businesses care to do so much for their consumers?
- 3. It’s because of Stakeholder theory! Duh…
- 4. What is it? Stakeholder theory is an idea that businesses should not function only for financial benefit; they should run for the benefit of both their owners and stakeholders.
- 5. What is it? The idea is that when businesses pay attention to their stakeholders- customers, suppliers, employees, and investors- they will make a larger overall profit.
- 6. Who introduced it? Edward Freeman He began work on the Stakeholder Theory in 1984 Freeman received a B.A. in mathematics and philosophy from Duke.
- 7. Who uses it? Businesses, organizations, and even the Government! Anyone who values morals and the relationship between the consumer and corporation.
- 8. So what? The theory is important because it acts as a way to understand Corporate Social responsibility, or how a business regulates itself. It promotes the ideology that businesses making a profit are dependent on behaving honorably and with morals.
- 9. No Morals + all about profit = Bad
- 10. Criticism Has to be narrowed down to be useful Some businesses can make more of a profit while disregarding the opinions of the public/stakeholders Out of date and there have been too many revisions to keep track of
- 11. Example- Greenpeace Organization It was created in 1971. Realignment of the organization in 1985 created a less antagonistic group towards organizations, in order to be seen as a group to the people. Membership in 1985 was around 2 million; following the realignment period, Greenpeace gained 5 million members by 1990. It’s all about the people!
- 12. To Wrap it Up… Good business is a balance between the relationship of companies and stakeholders, as well as the motivation to earn a profit.