Bus 101 Note first test 9'16'11

Bus 101 Note first test 9'16'11 - Bus 101 Notes Stakeholder...

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Bus 101 Notes Stakeholder All those that affect or are affected by the actions of the firm Its important to identify a firms relevant stakeholders and understand their interest Business Any organization that is engaged in making or providing a service for profit Society Refers to human beings and the social structures they create General system theory Organism cannot be understood in isolation Stakeholder theory Corporations serve a broad public purpose to create value for society: descriptive, instrumental, and normative An important part of a manager’s job is to identify relevant stakeholders and understand both their interest and the power they have to assert their interest. Also called Stakeholder analysis Stakeholder salience Something that stands out to managers They are more salient when they have legitimacy and urgency in their claim Primary stakeholders Employees Customers Stockholder Community Suppliers Government and management aren’t really considered as stakeholders What is business Business can be understood as a set of relationships among groups that have a stale in the activities that make up the business Business is about how all primary stakeholders interact and create value. To understand business is to know how these relationships work Institutional investment Mutual funds or retirement accounts/pension plans Most American’s buy shares thru mutual funds You give money to mutual fund and they do research and invest your money for you When you’re an institutional investor you don’t have much say in what you invest in Most people who invest, invest thru these companies Owners legal rights
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Bus 101 Note first test 9'16'11 - Bus 101 Notes Stakeholder...

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