Which of the following is true about Stakeholder Theory?
Stakeholder Theory can help managers in solving ethical problems, such as the environment, and gives managers a practical framework for assessing and balancing interests as long as normative principles are the foundation upon which decisions are made.
Normative principles are incorporated into organisational decision making, and it allows managers to give an unbalanced or biased weighting of issues in order to preserve ethical integrity.
Assessing stakeholders is often based on descriptive, not normative, assumptions.
All of the given options are correct.
According to Lindblom (1994), which of the following strategies can an organisation adopt when it perceives that its legitimacy is in question because its actions or operations are at variance with society's expectations and values?
Seek to educate and inform its 'relevant public' about actual changes in the organisation's performance and activities.
Seek to change the perceptions that 'relevant public' have of the organisation's performance and activities.
Seek to manipulate perception by deflecting attention from the issue of concern onto other issues to demonstrate how the organisation has fulfilled social expectations.
Managerial Stakeholder Theory suggests that annual reports will be used to:
Gain the support of powerful stakeholders
Report on the activities of management with respect to each stakeholder
Explain why profits may have been sacrificed in order to respect the minimum rights of some stakeholders
The difference between the managerial and moral perspectives of Stakeholder Theory is that:
The moral perspective is empirically testable
The moral perspective is more 'organisation-centred'
The managerial perspective is empirically testable
The managerial perspective holds that all stakeholders have certain minimum rights that must not be violated
The difference between Positive Accounting Theory and Legitimacy Theory is that:
Legitimacy Theory does not rely on the assumption that all action is driven by individual self-interest.
Legitimacy Theory makes no assumptions about the efficiency of markets.
Legitimacy Theory suggests that organisations have a 'social contract' with society.