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• Neo-classical theory:
• purpose of organizations is to make profits
• accountable to themselves and shareholders
• Socio-economic theory:
• other groups besides shareholders count
• accountability extends to groups considered to be important for
the continuity of the organization and the welfare of society
Neo-classic model
Investors
Suppliers Customers
ORGANIZATION
Employees
Stakeholder model
(Freeman, 1984)
Types of stakeholders
Type of Description Example
stakeholder
Customers Consumers
Employees Regulators
Distributors Government
Suppliers Media
Clarkham, 1992
Benefits of stakeholder model
Dormant
stakeholder Dominant Discretionary
stakeholder stakeholder
Definitive
stakeholder
Dangerous Dependent
stakeholder stakeholder
Non-stakeholder
Demanding
stakeholder
URGENCY
Stakeholder communication:
From awareness to commitment
Organization–stakeholder
communication models
Informational strategy: one-way symmetrical model of communication
ORGANIZATION STAKEHOLDER
ORGANIZATION STAKEHOLDER
Feedback
ORGANIZATION STAKEHOLDER
Characteristics of the ‘old’ and ‘new’ approaches to
organization–stakeholder relationships
Collaboration and engagement