○ 2/identifying stakeholder groups ■ In managing this stage, it is important to recognize stakeholder needs, wants, and desires . ○ 3/ identifying stakeholder issues ■ understanding the nature of the main issues of concern to these stakeholders . ○ 4/ assessing the organization's commitment
■ understanding of social responsibility that specifically matches the organization of interest . ○ 5/ identifying resources and determining urgency ■ First, the levels of financial and organizational investments required by different actions should be determined . A second criterion when prioritizing social responsibility challenges is urgency . ○ 6/ gaining stakeholder feedback. ■ stakeholders' general assessment of the firm and its practices can be obtained hrough satisfaction or reputation surveys. ● Name five stakeholder issues and how these could be measured to assess corporate impact and success. (page 45) ○ Employees: training and development ■ How: Changes in average training dollars spent per year per employee. Resources for ethics training versus industry averages. ■ ○ Customers: product safety and quality ■ 1. Number of product recalls over time ○ Investors: shareholder right ■ Frequency and type of litigation involving violations of shareholder rights ○ Supplier: Encouraging minority suppliers ■ Prices offered to suppliers in developed countries and developing countries in comparison to other suppliers ○ Community: public health and safety ■ Availability of emergency response plan protection ● Using examples, what power do stakeholders have over businesses? (page 44-45)
○ The stakeholder can disrupt the business' plans. The stakeholder causes uncertainty in the plans. The business needs and relies on the stakeholder. ○ For example: For example, a bank that turns you down for a loan if they decided your expansion plan is not viable. ● Define stakeholder orientation and discuss what a firm should do to achieve this orientation? (page 49-50) ○ It means that they are focused on stakeholders' concerns. Because the common good to be achieved, and move society toward shared partnerships. Stakeholder orientation: a firm understands and addressed stakeholder demands. To achieve: It includes activities that actually address stakeholder issues. Questions Chapter 3 ● How has the need for corporate governance around the world been affected by increased globalization in business? (pages 100-102) ○ Increased globalization, enhanced electronic communications, economic agreements and zones, and the reduction of trade barriers have created opportunities for firms around the world to conduct business with both international consumers and industrial partners. These factors propel the need for greater homogeniz a tion in corporate governance principles.
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