Key Terms
- amenities
- resources made available to employees in addition to wages, salary, and other standard benefits
- descriptive approach
- a theory that views the company as composed of various stakeholders, each with its own interests
- diffused stakeholder
- a stakeholder with an interest in a company’s decisions and whose impacts on a firm can be large even if the relationship is generally weaker than other types
- enabling stakeholder
- a stakeholder who permits an organization to function within the economic and legal system
- ethical maximum
- the strongest action a company can choose to behave ethically in a given situation
- ethical minimum
- the least a company might do to claim it holds an ethically positive position
- exigency
- the level of urgency of a stakeholder claim
- functional stakeholder
- a stakeholder whose relationships influence or govern an organization’s inputs and outputs
- greenwashing
- carrying out superficial CSR efforts that merely cover up systemic ethics problems for the sake of public relations
- instrumental approach
- a theory proposing that good management of stakeholders is important because it can help the bottom line
- normative approach
- a theory that considers stakeholders as ends unto themselves rather than means to achieve a better bottom line
- normative stakeholder
- a stakeholder in the organization’s industry who influences its norms or informal rules
- social responsibility of business
- the view that stakeholders are not the means to the end (profit) but are ends in and of themselves as human beings
- stakeholder claim
- a particular stakeholder’s interest in a business decision
- stakeholder management
- the process of accurately assessing stakeholder claims so an organization can manage them effectively
- stakeholder prioritization
- the process of deciding which stakeholders to focus on and in what sequence
- triple bottom line (TBL)
- a measure that accounts for an organization’s results in terms of its effects on people, planet, and profits