Key Terms

Key Terms - to create value for society. Market Stakeholdes...

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Key Terms Corporations and Stakeholders Stakeholder – refers to all those that affect, or are affected by, the actions of the firm. (customers, employees, etc) Stockholder – individuals or organizations that own shares of a company’s stock Business – any organization that is engaged in making a product or providing a service for a profit. Society – segments of humankind, such as members of a particular community, nation, or interest group. General Systems Theory – All organisms are open to, and interact with, their external environments. Although most organisms have clear boundaries, they cannot be understood in isolation, but only in relationship to their surroundings. Interactive Social System – Businesses and society both need each other, and each influence each other. They are both separate and connected. Ownership Theory of the Firm – the firm is seen as the property of its owners. Stakeholder Theory of the Firm – argues that corporations serve a broad public purpose;
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Unformatted text preview: to create value for society. Market Stakeholdes – those that engage in economic transactions with the company as it carries out its primary purpose of providing society with goods and services. Nonmarket Stakeholders – people and groups who – although they do not engage in direct economic exchange with the firm – are affected by or can affect its actions Stakeholder interests – the nature of each group’s stake, their concerns/what they want from their relationship with the firm Stakeholder power – the ability to use resources to make an event happen or to secure a desired outcome. Stakeholder engagement – the ongoing relationship between a business and its stakeholders. Stakeholder dialogue – a business and its stakeholders come together for face-to-face conversations about issues of common concerns...
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This note was uploaded on 04/07/2008 for the course BADM 115 taught by Professor Abzug during the Fall '08 term at Ramapo.

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Key Terms - to create value for society. Market Stakeholdes...

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