Podcast
Questions and Answers
Stakeholder theory focuses on the groups or individuals who ______ or are affected by the achievement of a company´s objectives.
Stakeholder theory focuses on the groups or individuals who ______ or are affected by the achievement of a company´s objectives.
affect
Governance in Stakeholders Theory should consider the interests of all ______, not just shareholders.
Governance in Stakeholders Theory should consider the interests of all ______, not just shareholders.
stakeholders
The stakeholder theory suggests that organizations should be responsible to a range of groups in society beyond just the organization’s owners or ______.
The stakeholder theory suggests that organizations should be responsible to a range of groups in society beyond just the organization’s owners or ______.
mandators
Cooperatives are organized to benefit stakeholders and members while contributing to the Sustainable Development Goals ______.
Cooperatives are organized to benefit stakeholders and members while contributing to the Sustainable Development Goals ______.
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In capital firms, there have not been significant differences in terms of workers and the ______.
In capital firms, there have not been significant differences in terms of workers and the ______.
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Stakeholder theory addresses morals and values in managing an organization, including those related to corporate social responsibility, market economy, and social ______ theory.
Stakeholder theory addresses morals and values in managing an organization, including those related to corporate social responsibility, market economy, and social ______ theory.
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Social and Solidarity Economy organisations are community-oriented by design, limiting financial return on capital and following rules for the allocation of ______
Social and Solidarity Economy organisations are community-oriented by design, limiting financial return on capital and following rules for the allocation of ______
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In non-profit organizations, there is a distinction between stakeholders who have control (‘dominant category’) and those who enjoy the ______
In non-profit organizations, there is a distinction between stakeholders who have control (‘dominant category’) and those who enjoy the ______
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Ownership rights in social economy organizations can be split and shared among different categories of ______
Ownership rights in social economy organizations can be split and shared among different categories of ______
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When both control and benefits are held by the same stakeholder in an organization, it aims at fulfilling the ‘mutual ______'
When both control and benefits are held by the same stakeholder in an organization, it aims at fulfilling the ‘mutual ______'
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Separation of ownership rights in many associations demonstrates the primacy of general interest over members’ financial ______
Separation of ownership rights in many associations demonstrates the primacy of general interest over members’ financial ______
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In Social and Solidarity Economy organizations, there is a limitation on financial return on capital and rules for the allocation of ______
In Social and Solidarity Economy organizations, there is a limitation on financial return on capital and rules for the allocation of ______
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The STOW framework is a two per two matrix Stakeholder Analysis. A stakeholder is every person or group who can influence the outcome of the business/project or is involved in the outcomes of the business/project, they can be members, consumers, workers, financers, competitors, banks, trade-unions, non members,…They may have different views on how to operate your business. Why is it important to conduct a stakeholder analysis? 1.To identify those persons, groups and institutions which may have an effect on the project. 2.To predetermine what kind of effect (negative, positive, or neutral) these groups will have on the project. Session 7: Measuring Performance in Social Economy Organisations: Measuring and Evaluating the Impacts Performance: The goal to approach something in long term relation How ______ performance: by the generation of high financial returns. Goal for managers in performance: allocate the business resources to maximise profits. “The social responsibility of business is to increase its profits” – Friedman 1970 New York Times Spending the shareholders' capital for another purpose = not in the shareholders interest. If shareholders have other interests they can spend their financial returns, if they don’t want to maximize profits they can go for charity. The cost to correct negative externalities is higher than the cost of not generating these externalities. Why ______ performance in SE organisations?
The STOW framework is a two per two matrix Stakeholder Analysis. A stakeholder is every person or group who can influence the outcome of the business/project or is involved in the outcomes of the business/project, they can be members, consumers, workers, financers, competitors, banks, trade-unions, non members,…They may have different views on how to operate your business. Why is it important to conduct a stakeholder analysis? 1.To identify those persons, groups and institutions which may have an effect on the project. 2.To predetermine what kind of effect (negative, positive, or neutral) these groups will have on the project. Session 7: Measuring Performance in Social Economy Organisations: Measuring and Evaluating the Impacts Performance: The goal to approach something in long term relation How ______ performance: by the generation of high financial returns. Goal for managers in performance: allocate the business resources to maximise profits. “The social responsibility of business is to increase its profits” – Friedman 1970 New York Times Spending the shareholders' capital for another purpose = not in the shareholders interest. If shareholders have other interests they can spend their financial returns, if they don’t want to maximize profits they can go for charity. The cost to correct negative externalities is higher than the cost of not generating these externalities. Why ______ performance in SE organisations?
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The STOW framework is a two per two matrix Stakeholder Analysis. A ______ is every person or group who can influence the outcome of the business/project or is involved in the outcomes of the business/project, they can be members, consumers, workers, financers, competitors, banks, trade-unions, non members,…They may have different views on how to operate your business. Why is it important to conduct a ______ analysis? 1.To identify those persons, groups and institutions which may have an effect on the project. 2.To predetermine what kind of effect (negative, positive, or neutral) these groups will have on the project. Session 7: Measuring Performance in Social Economy Organisations: Measuring and Evaluating the Impacts Performance: The goal to approach something in long term relation How measure performance: by the generation of high financial returns. Goal for managers in performance: allocate the business resources to maximise profits. “The social responsibility of business is to increase its profits” – Friedman 1970 New York Times Spending the shareholders' capital for another purpose = not in the shareholders interest. If shareholders have other interests they can spend their financial returns, if they don’t want to maximize profits they can go for charity. The cost to correct negative externalities is higher than the cost of not generating these externalities. Why measure performance in SE organisations?
The STOW framework is a two per two matrix Stakeholder Analysis. A ______ is every person or group who can influence the outcome of the business/project or is involved in the outcomes of the business/project, they can be members, consumers, workers, financers, competitors, banks, trade-unions, non members,…They may have different views on how to operate your business. Why is it important to conduct a ______ analysis? 1.To identify those persons, groups and institutions which may have an effect on the project. 2.To predetermine what kind of effect (negative, positive, or neutral) these groups will have on the project. Session 7: Measuring Performance in Social Economy Organisations: Measuring and Evaluating the Impacts Performance: The goal to approach something in long term relation How measure performance: by the generation of high financial returns. Goal for managers in performance: allocate the business resources to maximise profits. “The social responsibility of business is to increase its profits” – Friedman 1970 New York Times Spending the shareholders' capital for another purpose = not in the shareholders interest. If shareholders have other interests they can spend their financial returns, if they don’t want to maximize profits they can go for charity. The cost to correct negative externalities is higher than the cost of not generating these externalities. Why measure performance in SE organisations?
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The STOW framework is a two per two matrix Stakeholder Analysis. A stakeholder is every person or group who can influence the outcome of the ______/project or is involved in the outcomes of the ______/project, they can be members, consumers, workers, financers, competitors, banks, trade-unions, non members,…They may have different views on how to operate your ______. Why is it important to conduct a stakeholder analysis? 1.To identify those persons, groups and institutions which may have an effect on the project. 2.To predetermine what kind of effect (negative, positive, or neutral) these groups will have on the project. Session 7: Measuring Performance in Social Economy Organisations: Measuring and Evaluating the Impacts Performance: The goal to approach something in long term relation How measure performance: by the generation of high financial returns. Goal for managers in performance: allocate the ______ resources to maximise profits. “The social responsibility of ______ is to increase its profits” – Friedman 1970 New York Times Spending the shareholders' capital for another purpose = not in the shareholders interest. If shareholders have other interests they can spend their financial returns, if they don’t want to maximize profits they can go for charity. The cost to correct negative externalities is higher than the cost of not generating these externalities. Why measure performance in SE organisations?
The STOW framework is a two per two matrix Stakeholder Analysis. A stakeholder is every person or group who can influence the outcome of the ______/project or is involved in the outcomes of the ______/project, they can be members, consumers, workers, financers, competitors, banks, trade-unions, non members,…They may have different views on how to operate your ______. Why is it important to conduct a stakeholder analysis? 1.To identify those persons, groups and institutions which may have an effect on the project. 2.To predetermine what kind of effect (negative, positive, or neutral) these groups will have on the project. Session 7: Measuring Performance in Social Economy Organisations: Measuring and Evaluating the Impacts Performance: The goal to approach something in long term relation How measure performance: by the generation of high financial returns. Goal for managers in performance: allocate the ______ resources to maximise profits. “The social responsibility of ______ is to increase its profits” – Friedman 1970 New York Times Spending the shareholders' capital for another purpose = not in the shareholders interest. If shareholders have other interests they can spend their financial returns, if they don’t want to maximize profits they can go for charity. The cost to correct negative externalities is higher than the cost of not generating these externalities. Why measure performance in SE organisations?
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The STOW framework is a two per two matrix Stakeholder Analysis. A stakeholder is every person or group who can influence the outcome of the business/project or is involved in the outcomes of the business/project, they can be members, consumers, workers, financers, competitors, banks, trade-unions, non members,…They may have different views on how to operate your business. Why is it important to conduct a stakeholder analysis? 1.To identify those persons, groups and institutions which may have an effect on the project. 2.To predetermine what kind of effect (negative, positive, or neutral) these groups will have on the project. Session 7: Measuring Performance in Social Economy Organisations: Measuring and Evaluating the Impacts Performance: The goal to approach something in long term relation How measure performance: by the generation of high financial returns. Goal for managers in performance: allocate the business resources to maximise ______. “The social responsibility of business is to increase its ______” – Friedman 1970 New York Times Spending the shareholders' capital for another purpose = not in the shareholders interest. If shareholders have other interests they can spend their financial returns, if they don’t want to maximize ______ they can go for charity. The cost to correct negative externalities is higher than the cost of not generating these externalities. Why measure performance in SE organisations?
The STOW framework is a two per two matrix Stakeholder Analysis. A stakeholder is every person or group who can influence the outcome of the business/project or is involved in the outcomes of the business/project, they can be members, consumers, workers, financers, competitors, banks, trade-unions, non members,…They may have different views on how to operate your business. Why is it important to conduct a stakeholder analysis? 1.To identify those persons, groups and institutions which may have an effect on the project. 2.To predetermine what kind of effect (negative, positive, or neutral) these groups will have on the project. Session 7: Measuring Performance in Social Economy Organisations: Measuring and Evaluating the Impacts Performance: The goal to approach something in long term relation How measure performance: by the generation of high financial returns. Goal for managers in performance: allocate the business resources to maximise ______. “The social responsibility of business is to increase its ______” – Friedman 1970 New York Times Spending the shareholders' capital for another purpose = not in the shareholders interest. If shareholders have other interests they can spend their financial returns, if they don’t want to maximize ______ they can go for charity. The cost to correct negative externalities is higher than the cost of not generating these externalities. Why measure performance in SE organisations?
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The STOW framework is a two per two matrix Stakeholder Analysis. A stakeholder is every person or group who can influence the outcome of the business/project or is involved in the outcomes of the business/project, they can be members, consumers, workers, financers, competitors, banks, trade-unions, non members,…They may have different views on how to operate your business. Why is it important to conduct a stakeholder analysis? 1.To identify those persons, groups and institutions which may have an effect on the project. 2.To predetermine what kind of effect (negative, positive, or neutral) these groups will have on the project. Session 7: Measuring Performance in Social Economy Organisations: Measuring and Evaluating the Impacts Performance: The goal to approach something in long term relation How measure performance: by the generation of high financial returns. Goal for managers in performance: allocate the business resources to maximise profits. “The ______ responsibility of business is to increase its profits” – Friedman 1970 New York Times Spending the shareholders' capital for another purpose = not in the shareholders interest. If shareholders have other interests they can spend their financial returns, if they don’t want to maximize profits they can go for charity. The cost to correct negative externalities is higher than the cost of not generating these externalities. Why measure performance in SE organisations?
The STOW framework is a two per two matrix Stakeholder Analysis. A stakeholder is every person or group who can influence the outcome of the business/project or is involved in the outcomes of the business/project, they can be members, consumers, workers, financers, competitors, banks, trade-unions, non members,…They may have different views on how to operate your business. Why is it important to conduct a stakeholder analysis? 1.To identify those persons, groups and institutions which may have an effect on the project. 2.To predetermine what kind of effect (negative, positive, or neutral) these groups will have on the project. Session 7: Measuring Performance in Social Economy Organisations: Measuring and Evaluating the Impacts Performance: The goal to approach something in long term relation How measure performance: by the generation of high financial returns. Goal for managers in performance: allocate the business resources to maximise profits. “The ______ responsibility of business is to increase its profits” – Friedman 1970 New York Times Spending the shareholders' capital for another purpose = not in the shareholders interest. If shareholders have other interests they can spend their financial returns, if they don’t want to maximize profits they can go for charity. The cost to correct negative externalities is higher than the cost of not generating these externalities. Why measure performance in SE organisations?
Signup and view all the answers
The STOW framework is a two per two matrix Stakeholder Analysis. A stakeholder is every person or group who can influence the outcome of the business/project or is involved in the outcomes of the business/project, they can be members, consumers, workers, financers, competitors, banks, trade-unions, non members,…They may have different views on how to operate your business. Why is it important to conduct a stakeholder analysis? 1.To identify those persons, groups and institutions which may have an effect on the project. 2.To predetermine what kind of effect (negative, positive, or neutral) these groups will have on the project. Session 7: Measuring Performance in Social Economy Organisations: Measuring and Evaluating the Impacts Performance: The goal to approach something in long term relation How measure performance: by the generation of high financial returns. Goal for managers in performance: allocate the business resources to maximise profits. “The social responsibility of business is to increase its profits” – Friedman 1970 New York Times Spending the shareholders' capital for another purpose = not in the shareholders ______. If shareholders have other ______s they can spend their financial returns, if they don’t want to maximize profits they can go for charity. The cost to correct negative externalities is higher than the cost of not generating these externalities. Why measure performance in SE organisations?
The STOW framework is a two per two matrix Stakeholder Analysis. A stakeholder is every person or group who can influence the outcome of the business/project or is involved in the outcomes of the business/project, they can be members, consumers, workers, financers, competitors, banks, trade-unions, non members,…They may have different views on how to operate your business. Why is it important to conduct a stakeholder analysis? 1.To identify those persons, groups and institutions which may have an effect on the project. 2.To predetermine what kind of effect (negative, positive, or neutral) these groups will have on the project. Session 7: Measuring Performance in Social Economy Organisations: Measuring and Evaluating the Impacts Performance: The goal to approach something in long term relation How measure performance: by the generation of high financial returns. Goal for managers in performance: allocate the business resources to maximise profits. “The social responsibility of business is to increase its profits” – Friedman 1970 New York Times Spending the shareholders' capital for another purpose = not in the shareholders ______. If shareholders have other ______s they can spend their financial returns, if they don’t want to maximize profits they can go for charity. The cost to correct negative externalities is higher than the cost of not generating these externalities. Why measure performance in SE organisations?
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Study Notes
Stakeholder Theory
- Rejects the idea that managers will act in their own interests over those of the organization
- Assumes managers are good, competent people who want to do their jobs well
- Managers do not need to be monitored or offered a fat bonus to convince them to perform well
- They need a board that will partner with them and support them
Stakeholder Theory and Governance
- Governance should take into account the interests of all stakeholders, not just shareholders, members, etc.
- Organisations should be responsible to a range of groups in society, other than just owners or mandators
- Stakeholder theory applied to governing bodies is based on the premise that organisations should be responsible to multiple stakeholders
Comparison with Other Theories
- Cooperatives: Organised to benefit stakeholders and members while contributing to Sustainable Development Goals (SDG)
- Capital firms: No significant differences in terms of workers and the state
- Neo-classical approach: Assumes that control and residual claimants are non-divisible, but they can be split and shared among different categories of stakeholders
Stakeholder Analysis
- A stakeholder is every person or group who can influence the outcome of the business/project or is involved in the outcomes
- They can be members, consumers, workers, financers, competitors, banks, trade-unions, non-members, etc.
- They may have different views on how to operate the business
Importance of Stakeholder Analysis
- To identify those persons, groups, and institutions that may have an effect on the project
- To predetermine what kind of effect (negative, positive, or neutral) these groups will have on the project
Measuring Performance in Social Economy Organisations
- Measuring performance: Goal to approach something in a long-term relationship
- Goal for managers in performance: Allocate business resources to maximize profits
- "The social responsibility of business is to increase its profits" - Friedman (1970)
- Why measure performance in SE organisations? To correct negative externalities and to allocate resources effectively
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Description
This quiz explores the concept of stakeholder theory and challenges the assumption that managers act in their own interests. It discusses the idea that managers are competent individuals who want to perform well with the support of a board.
