Stakeholder Theory Fundamentals
This scholar is considered the "father of stakeholder theory" and published the landmark book "Strategic Management: A Stakeholder Approach" in 1984
Who is r. Edward Freeman?
According to the IAP2 Spectrum of Public Participation, this is the lowest level of engagement where the goal is simply to provide the public with balanced information.
What is Inform?
This principle, abbreviated as FPIC, is a specific right affirmed in the UN Declaration on the Rights of Indigenous Peoples.
What is Free, Prior and Informed Consent?
A coffee company sources beans from smallholder farmers but faces pressure from investors to cut costs. This stakeholder group's interests are most directly in tension with shareholder demands for lower procurement prices.
Who are the farmers/suppliers/producers?
How many tiny humans call the instructor "Maman"?
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Freeman distinguished between this "narrow" view of the firm that prioritizes only shareholders versus the broader stakeholder view that considers multiple constituencies.
What is the shareholder primacy model? (or What is shareholder theory?)
The five levels of the IAP2 spectrum, in order from lowest to highest engagement, are Inform, Consult, Involve, Collaborate, and this final level.
What is Empower?
The "Prior" component of FPIC means that consent must be sought sufficiently in advance of this, allowing time for Indigenous peoples' decision-making processes.
What is the commencement of activities/project authorization? (or What is any authorization or beginning of activities?)
An energy company wants to build a wind farm on land that Indigenous communities consider sacred. According to FPIC principles, the company must obtain this before proceeding, even if they have government permits.
What is free, prior and informed consent from the Indigenous community?
Julie cares for this many animals at home.
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According to stakeholder theory, stakeholders are defined as individuals or groups who can affect or are affected by the achievement of this.
What is the organization's objectives/purpose? (or What are organizational goals?)
At the "Consult" level of the IAP2 spectrum, this is the promise made to stakeholders regarding how their input will be treated.
What is "we will keep you informed, listen to and acknowledge concerns, and provide feedback on how input influenced the decision"? (or What is acknowledging and considering their feedback?)
This distinction highlights that while Western approaches often treat knowledge as an object to extract, Indigenous knowledge systems emphasize responsibilities, protocols, and maintaining these ongoing connections.
What are relationships? (or What is relational knowledge/knowing as relational?)
A pharmaceutical company must decide whether to make a life-saving drug affordable in low-income countries or maximize profits for shareholders. This ethical framework would prioritize the needs of patients and communities over shareholder returns.
What is stakeholder theory? (or What is a normative/ethical stakeholder approach?)
SEED stands for the School of...
What is Environment, Enterprise, and Development?
Mitchell, Agle, and Wood (1997) proposed that stakeholder salience depends on these three attributes that stakeholders may possess.
What are power, legitimacy, and urgency?
This engagement level is characterized by working directly with stakeholders throughout the process to ensure their concerns and aspirations are consistently understood and considered.
What is Involve?
Unlike Western stakeholder theory's transactional focus, many Indigenous worldviews emphasize this concept that understands all beings as interconnected across time and space
What is relationality? (or What are relational accountability/relational ontology?)
A mining company conducts a consultation where community members raise serious concerns about water contamination, but the project proceeds unchanged. According to the IAP2 spectrum, the company failed to move beyond this level of engagement.
What is Consult? (or What is tokenistic consultation/consultation without genuine influence?)
This person currently leads the SEED department.
Who is Jeffrey Wilson?
In the Mitchell, Agle, and Wood framework, a stakeholder possessing all three attributes—power, legitimacy, and urgency—is classified by this term, indicating they require immediate attention.
What is a definitive stakeholder?
At the highest "Empower" level of engagement, final decision-making authority rests with this group, representing the most significant shift in power dynamics.
Who are the stakeholders?
Developed by Mi'kmaq Elder Albert Marshall, this concept encourages learning to see from one eye with Indigenous knowledges and from the other eye with Western knowledges.
What is Two-Eyed Seeing? (or What is Etuaptmumk?)
A tech company's algorithm disproportionately harms marginalized communities, but these groups were never identified or engaged during development. Using Mitchell, Agle, and Wood's framework, the company failed to recognize these groups possessed this attribute, even though they clearly had legitimacy and urgency.
What is power? (or What is stakeholder salience/what is identifying stakeholders who lack traditional power?)
The ENV3 patio is accessible from...
What is the School of Planning?