Managing for Stakeholders: Survival, Reputation, and Success

These flashcards cover key concepts from the lecture notes on stakeholder management, highlighting definitions, important ideas, and business strategies.

Managing for Stakeholders

A business approach that emphasizes the importance of addressing the needs and interests of various groups (stakeholders) such as customers, suppliers, employees, and communities.

Stakeholder

Any group or individual who can affect or is affected by the achievement of a corporation’s purpose.

Economic Value Added (EVA)

A measure of a company’s financial performance that reflects the value created in excess of the required return of the company's shareholders.

Crisis-Reaction-Crisis Cycle

A state in which businesses are constantly reacting to crises rather than proactively managing or planning.

Enterprise Strategy

An approach that focuses on creating and delivering value to all stakeholders, incorporating both strategic objectives and ethical considerations.

Primary Stakeholders

Groups that have a direct stake in the performance of the business, such as employees, suppliers, customers, and financiers.

Ethical Leadership

A style of leadership that emphasizes ethical behavior, integrity, and moral standards in managing a business.

Stakeholder Engagement

The process of interacting with and seeking to understand the needs and viewpoints of various stakeholders to build relationships and create mutual value.

Social Investing

Investment strategies that consider social impact in addition to financial returns, often focusing on companies that positively affect society.

Capitalism and the Logic of Values

The idea that business success is fundamentally about generating value for multiple stakeholders rather than solely focusing on profit for shareholders.