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A snapshot of the summary - Week 2 Lecture Videos BSS MCM
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1 Introduction
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Peter
Ducker says the following: "Profit for a company is likeoxygen for a person. If you don't have enough of it, you're out of the game. But if you think your life is aboutbreathing you're really missing something." What does he consider as the purpose of business?Note that this is very different to theview ofFriedman .Essentially he states that the purpose of business is to create and keep acustomer . -
Jack
Welsh states: "On the face of it,shareholder value is thedumbest idea in the world. Shareholder value is a result, not a strategy. ..." What does he argue withregards to the purpose of business?Your mainconstituents are your employees, your customers and your products. -
1.1 Stakeholders
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There are two views that can be distinguished when defining a stakeholder, which two views are these?
- Narrow view.
- Broader view.
- Narrow view.
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Who is seen as the founder of Stakeholder Theory?Freeman.
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What does stakeholder theory aim to explain?The nature of relationships between organisations and those persons with a 'stake' in the operations and outcomes of business activity.
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1.1.1 Narrow View
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What is an example of a narrow view for defining
stakeholders ? Given by Clarkson,1995 Those who have place something atrisk in relationship with thefirm -
Why is the definition of Clarkson considered to be a Narrow definition?By using the words 'place something at risk' you:
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mply that thestakeholder has made a decision to be astakeholder of the company. - Imply someone has something to loose.
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In what sense can you have placed something at risk as a stakeholder and have something to loose, what could you have to loose?
- Financial or
- Human capital.
- Financial or
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What do, according to the Mitchell, Agle & Wood article, narrow views of stakeholders attempt to define?Relevant groups in terms of their direct relevance to the firm's core economic interests.
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Those who favour a narrow definition of stakeholders search for a "normative core" of legitimacy, what does this mean for managers?That managers can be advised to focus on the claims of a few legitimate stakeholders.
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The following topics are covered in this summary
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stakeholder, areas, 1995
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salience, stakeholder, 1997
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trade-offs, win-win, stakeholder
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capitalism, achieving, version
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ngo's, multinationals, underlying
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unocal, burma, variable
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nike, relies, offers
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novartis, competitive, variable
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mure, 2003, capitulate
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business-ngo, ngo, ngo's
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georgallis, preferences, view