How are all the parties called that are affected by activities of a specific firm?
Primary stakeholders
Secondary stakeholders
Primary shareholders
Secondary shareholders
When is stakeholder management seen as being normative?
When stakeholders and shareholders have goals that may, or may not, be in alignment with each other.
When managing stakeholders is seen as a pragmatic approach or technique for dealing with the essential participants in the value-adding process.
When managing stakeholders is based on the fundamental notion that the organization’s purpose is to serve the stakeholders.
When shareholders treat stakeholders with concern and respect
According to Rappaport, in "Shareholder value and corporate purpose" (reading 11.1), the fundamental purpose of corporate restructuring in the 1980s (Phase I restructuring) was:
To promote joint ventures and technological development at the national level
To bring a new leadership to the companies in crises
To increase social responsibility of the business organizations
To increase the share price in order to avoid a takeover