Stakeholder Relationships,
Social Responsibility, and
Corporate Governance
C H A P T E R 2
Relationships and Business
•Building relationships is one of
most important areas in business
today
–Can be associated with
organizational success and
misconduct
•Stakeholder framework
–Helps identify internal and
external stakeholders
–Helps monitor and respond to
needs, values, and
expectations of stakeholder
groups
Source: Stockbyte
What Is a Stakeholder?
•Stakeholders are those who have a stake or claim in
some aspect of a company’s products, operations,
markets, industry and outcomes
–Customers –Investors
–Employees –Suppliers
–Government agencies –Communities
•Stakeholders can influence and are influenced by
businesses
Primary vs. Secondary Stakeholders
•Primary stakeholders: Those whose continued
association is necessary for a firm’s survival
–Employees, customers, investors, governments
and communities
•Secondary stakeholders: Are not essential to a
company’s survival
–Media, trade associations, and special interest
groups
The Stakeholder Interaction Model
Stakeholder Orientation
•The degree to which a firm understands and
addresses stakeholder demands
•Three activities:
–Generation of data about
stakeholder groups
–Distribution of the information
throughout the firm
– Organization’s responsiveness
to this intelligence
Source: Digital Vision
Social Responsibility
•Is an organization’s obligation to maximize its positive
impact on stakeholders and minimize its negative
impact
•Four levels of social responsibility:
