MAN4701 Exam 1 Study Guide | Stakeholder
Theory, Power & Business–Society Relations|
Questions Provided with A+ Graded Rationales
Latest Updated 2026
General Systems Theory (GST)
organisms do not exist in isolation but can only be understood in relationship to their
surroundings; businesses are embedded in a broader social environment with which they
constantly interact
Shareholder Theory of The Firm
- Sees the firm as property of owners (shareholders)
- Owners' interests take precedence over interests of others
- The purpose of the firm is to maximize its long-term market value/money for the
shareholders
- Corporations serve a broad public purpose: to create value for society
- Profit is necessary for survival, but is not the only purpose of the firm
- Corporations have multiple obligations and need to consider all stakeholders
Stakeholders
persons or groups that affect, or are affected by, a firm's decisions, policies, and operations
Market Stakeholders
Nonmarket Stakeholders
Internal Stakeholders
External Stakeholders
Stakeholder Analysis
includes the identification of relevant stakeholders and an analysis of their interests and
power
Stakeholder Analysis Steps
1. Who are the relevant Stakeholders?
2. What are the interests of each stakeholder?
3. What is the power of each Stakeholder
4. How are coalitions likely to form?
Theory, Power & Business–Society Relations|
Questions Provided with A+ Graded Rationales
Latest Updated 2026
General Systems Theory (GST)
organisms do not exist in isolation but can only be understood in relationship to their
surroundings; businesses are embedded in a broader social environment with which they
constantly interact
Shareholder Theory of The Firm
- Sees the firm as property of owners (shareholders)
- Owners' interests take precedence over interests of others
- The purpose of the firm is to maximize its long-term market value/money for the
shareholders
- Corporations serve a broad public purpose: to create value for society
- Profit is necessary for survival, but is not the only purpose of the firm
- Corporations have multiple obligations and need to consider all stakeholders
Stakeholders
persons or groups that affect, or are affected by, a firm's decisions, policies, and operations
Market Stakeholders
Nonmarket Stakeholders
Internal Stakeholders
External Stakeholders
Stakeholder Analysis
includes the identification of relevant stakeholders and an analysis of their interests and
power
Stakeholder Analysis Steps
1. Who are the relevant Stakeholders?
2. What are the interests of each stakeholder?
3. What is the power of each Stakeholder
4. How are coalitions likely to form?
