Urgency vs Legitimacy in Stakeholder review

Urgency in stakeholder theory

The degree to which stakeholder claims call for immediate attention based on time sensitivity and criticality. (Not about social appropriateness.)

Extractive institutions (1490s example)

Found in almost every civilization in the 1490s, including Spain and indigenous Latin American empires—systems designed to extract resources from the many for the few.

Two forces driving creative destruction (from TPoCD)

International competition and civil society.

Shareholder theory focus

A firm should primarily maximize value for its investors/owners.

Why indigenous peoples of North America were hard to exploit

Low population density and lack of strong centralized authority.

Example of an internal stakeholder

Managers.

State roles that encourage creative destruction

Protecting property rights, preserving competition, and investing in innovation.

True/False: Extractive political and economic institutions reinforce each other in a vicious cycle, just as inclusive institutions reinforce each other in a virtuous cycle.

True—they reinforce each other in a vicious or virtuous cycle.

Most socially responsible company action

Proactively operating to help local students get education and jobs.

Not an example of enlightened self-interest

Maximizing quarterly profits without social benefit consideration.

The interests of different stakeholders often coincide.

Often coincide—true.

Stakeholder involvement in different company parts

True—they may have little or no involvement with other parts.

Stakeholder analysis involves

Understanding the nature of stakeholder interests.

"Utils" not captured by GDP

Free digital goods, time savings, love/trust.

Stakeholder power increased by information-sharing tech

Informational power.

Inclusive political institutions require

Sufficient pluralism AND political centralization.

True or False

Enlightened self-interest is about charity

False—it's about long-term self-benefit through socially beneficial actions.

Economic progress sequence

Innovation → Productivity growth → Economic development.

Main barrier to political centralization

Fear that the centralizing group will concentrate too much power.

Who bears CSR costs often

Consumers through higher prices.

Similarities between the two Nogales

Geography, climate, culture, disease environment, ancestry.

Institutions affect economies through

Different incentives they create.

Creative destruction (TPoCD)

Process where new tech/jobs emerge, old ones become obsolete; driving force of capitalism; generates risk/upheaval.

Economic growth under extractive institutions

False—it can occur but is usually short-term.

Why artisans/landed elites opposed industrialization

It threatened their income.

Example of a market stakeholder

Creditors.

Why GDP is a good measure of well-being

It correlates positively with life satisfaction surveys.

Business-society relationship truth

Business and society are interdependent; each affects the other.

Main theory explaining Nogales difference

Institutions.

How customers exercise economic power

Boycotting products.

What is a False statement about interactive social system

"Boundary between business and society is clear and distinct."

Key enabler of international stakeholder coalitions

Communications technology.

Two institutions responsible for economic development

Economic and political institutions.

Argument against CSR

It imposes unequal costs among competitors—true.

Organizations founded to create social value

Social entrepreneurship.

Virtues of innovation-driven inequality (TPoCD)

Inequality is temporary, creates social mobility, leads to economic growth.

Jamestown settlers

"Wannabe Pizarros"—adventurers seeking quick wealth.

Biggest motivator for corporate social reporting

Government reporting requirements.