Management Chapter 3 Homework Instructors Manual Business Amp Society Carroll 10e

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Ch 3, Instructor’s Manual, Business & Society, Carroll 10e

Chapter 3

The Stakeholder Approach to Business, Society, and Ethics

LEARNING OUTCOMES

After studying this chapter, you should be able to:

1. Identify origins of the stakeholder concept by explaining what a stake is and what a

stakeholder is.

3. Differentiate among the three stakeholder approaches—strategic, multifiduciary, and

synthesis.

5. Name and describe the five key questions that capture the essence of stakeholder

management.

6. Explain major concepts in effective stakeholder management to include stakeholder

7. Describe the three strategic steps toward global stakeholder management.

TEACHING SUGGESTIONS

INTRODUCTION – In the face of increasingly complex business environments and operations,

the models by which businesses are managed are also becoming more complex. Perhaps the

principle reason for this increasing complexity is the fact that business organizations are no

longer viewed as the sole property or interest of the owners. Recognition of various

stakeholders’ interests in the firm requires management models that are capable of identifying

and addressing those interests. The stakeholder concept is one such model.

KEY TALKING POINTS – The primacy of ownership interest in business organizations is still

very much the norm in the United States. When students are asked why shareholders should

normatively receive the profits of a business, their standard answer is that the shareholders own

the company. The idea that an ownership position entitles privileged treatment is almost

universal among U. S. residents. Realization that other groups also have legitimate claims on the

corporation is a nearly foreign concept for some students. Introduction of the stakeholder model

of the firm is an excellent opportunity to make a significant difference in how students think

Ch 3, Instructor’s Manual, Business & Society, Carroll 10e

PEDAGOGICAL DEVICES – In this chapter, instructors may utilize a combination of:

Cases:

1-Wal-Mart- The Main Street Merchant of Doom

2-The Body Shop (A) – Pursuing Social and Environmental Change

3-The Body Shop (B) – Reputation is Tarnished

4-The Body Shop (C) – Into the New Millennium

7-Using Ex-Cons to Teach Business Ethics

12-Banned if You Do, Banned if You Don’t

19-Should Directors Shine Light on Dark Money?

23-McDonald’s Coffee Spill

24-The Betaseron Decision (A)

25-The Hudson River Cleanup and GE

26-Cloud Computing – Earth’s Friend or Foe

27-New Belgium Brewing, Defining a Business on Sustainability

29-Felony Franks (2), Home of the Misdemeanor Wiener

31-Moral Dilemma – Head vs. Heart

39-To Take or Not to Take

Ethics in Practice Cases:

Are Plants and Flowers Stakeholders? Do They Have Rights?

Chickens or Employees? Which Is the Most Important Stakeholder?

Something’s Rotten in Hondo

Spotlight on Sustainability:

Engaging Stakeholders on Sustainability

Power Point slides:

LECTURE OUTLINE

I. ORIGINS OF THE STAKEHOLDER CONCEPT

A. What is the Stake in Stakeholder?

B. What is a Stakeholder?

II. WHO ARE BUSINESS’S STAKEHOLDERS?

A. Three Views of the Firm: Production, Managerial, and Stakeholder

B. Primary and Secondary Stakeholders

Ch 3, Instructor’s Manual, Business & Society, Carroll 10e

C. Important Stakeholder Attributes: Legitimacy, Power, Urgency

III. S TAKEHOLDER APPROACHES: STRATEGIC, MULTIFIDUCIARY, AND

SYNTHESIS

IV. THREE VALUES OF THE STAKEHOLDER MODEL

A. Descriptive Value

V. STAKEHOLDER MANAGEMENT: FIVE KEY QUESTIONS

A. Who Are the Organization’s Stakeholders?

2. Wool Industry under Fire

B. What Are Our Stakeholders’ Stakes?

1. Nature or Legitimacy of a Group’s Stakes

3. Subgroups within a Generic Group

C. What Opportunities and Challenges Do Our Stakeholders Present?

1. Potential for Cooperation or Threat

D. What Responsibilities Does a Firm Have toward Its Stakeholders?

E. What Strategies or Actions Should Management Take?

1. Type 1: Supportive Stakeholder

3. Type 3: Nonsupportive Stakeholder

5. Tapping Expertise of Stakeholders

VI. EFFECTIVE STAKEHOLDER MANAGEMENT

A. Stakeholder Thinking

B. Developing a Stakeholder Culture

C. Stakeholder Management Capability

D. Stakeholder Engagement

1. Ladder of Stakeholder Engagement

3. Engaging on Sustainability

4. Stakeholder Dialogue

E. The Stakeholder Corporation

F. Principles of Stakeholder Management

VII. STRATEGIC STEPS TOWARD GLOBAL STAKEHOLDER MANAGEMENT

A. Implementation

VIII. SUMMARY

Ch 3, Instructor’s Manual, Business & Society, Carroll 10e

SUGGESTED ANSWERS TO DISCUSSION QUESTIONS

Students should recognize that their answers to these discussion questions should be well

reasoned and supported with evidence. Although some answers will be more correct than others,

students should be aware that simplistic answers to complex questions, problems, or issues such

as these will never be “good” answers.

1. Question: Explain the concepts of stake and stakeholder from your perspective as an

individual. What kinds of stakes and stakeholders do you have? Discuss.

Answer: As college students, the people in class may have a widely varied list of stakes

2. Question: Explain in your own words the differences between the production, managerial,

and stakeholder views of the firm. Which view is best and why?

Answer: The production view of the firm was the earliest, most simplistic model. In it, the

only groups considered were those who dealt directly with the firm in a business capacity,

3. Question: Differentiate between primary and secondary social and nonsocial stakeholders

in a business situation. Give examples of each.

Answer: Primary stakeholders are those groups or persons who have a direct stake in the

organization. Secondary stakeholders have more public or special interests in the firm,

4. Question: What are the five key questions that must be answered for stakeholder

management to be successful?

Answer: 1. Who are our organization’s stakeholders? 2. What are our stakeholder’s stakes?

3. What opportunities and challenges do our stakeholders present to the firm? 4. What

5. Question: What are the three levels of stakeholder engagement that a company might use?

Explain each.

Answer: Lower levels of stakeholder engagement can be used for informing and

6. Question: Is the stakeholder corporation a realistic model for business firms? Will

stakeholder corporations become more prevalent in the 21st century? Why or why not?

Answer: A cynic would look at the current business climate and declare that the

stakeholder corporation is an impractical dream that will not come to fruition any time

GROUP ACTIVITY

Divide students into groups of four to five students. Have each group review the corporate social

responsibility report of a different company. Ask the students to determine the stakeholders

addressed by the company’s CSR report. Students should then select one stakeholder group and

determine how the company addressed the five key questions of stakeholder management with

regards to the selected stakeholder: (1) Who Are Our Stakeholders? (Students should indicate

Ch 3, Instructor’s Manual, Business & Society, Carroll 10e

INDIVIDUAL ASSIGNMENT

Have students read the following scenario and use the five key questions in stakeholder

management to determine how Starbuck’s should handle this stakeholder.

A few years ago, Starbucks identified three areas in which government could impact the