Corporate Governance & Sustainability Flashcards

A set of vocabulary flashcards covering corporate governance, portfolio management frameworks, stakeholder mapping, and legitimation strategies as presented in Lecture 9.

Corporate Governance

The structures and systems of control by which managers are held accountable to those who have a legitimate stake in an organisation.

Igor Ansoff's Growth Matrix

A framework for generating four basic directions for firm growth based on two dimensions: Markets (new or existing) and Products/services (new or existing).

Related Diversification

A category of growth following Igor Ansoff's matrix, encompassing three limited growth strategies.

Unrelated Diversification

A substantive growth strategy from the Ansoff Matrix, often referred to as conglomerate diversification.

BCG Matrix (Growth Share Matrix)

A consultancy tool developed by Bruce Henderson in the early 1970's used to understand strategic business units based on market share and market growth.

Stakeholders (Hill and Jones, 1992)

Individuals and entities that can be influenced by, or can impact on, a firm.

Stakeholder Mapping

A means to understand the influence of different stakeholders or groups in strategy using the dimensions of extant power and perceived interest (or attention).

High power, high interest stakeholders

The most important stakeholders who need to be prioritised and kept happy.

High power, low interest stakeholders

Stakeholders who have influence and should be kept satisfied by the organisation, despite their lack of significant interest.

Low power, high interest stakeholders

Stakeholders who should be kept informed and monitored as their high interest could be important despite low power.

Low power, low interest stakeholders

Stakeholders who require simple monitoring and being kept updated, as they possess little power or interest.

Corporate Social Responsibility (CSR)

The most common term associated with responsibility challenges in business, often incorporated into strategy or core business models.

Rhetoric

The art of effective or persuasive speaking or writing, especially the exploitation of figures of speech and other compositional techniques.

Authenticity

The quality of being authentic; a critical factor when discussing issues of responsibility in strategy.

Organisational Legitimacy

The perception or assumption that the actions of an entity are desirable, proper, or appropriate.

Legitimation Strategies

Strategic responses used by organisations to manage their legitimacy over time by balancing organisational actions and societal expectations.

Adaptation (Legitimation Strategy)

A strategy where an organisation adapts to meet the expectations of key stakeholders, allowing societal expectations to influence organisational actions.

Manipulation (Legitimation Strategy)

An attempt to control the expectations of key stakeholders, where organisational actions attempt to influence societal expectations through methods like advertising or lobbying.

Argumentation (Legitimation Strategy)

Conversing in dialogue about expectations with key stakeholders where actions and expectations are discussed, negotiated, and refined.

Paradox approach (Legitimacy)

Combining the three legitimation strategies (Adaptation, Manipulation, Argumentation) to tackle complex issues and manage legitimacy.