Accounting Theory- Stakeholders

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Question: Taking into account Figure 3.4 on page 45 of your textbook (Stakeholder Typology: One, Two, or Three Attributes Present) discuss the ‘Ethics in Practice case’ on page 46 (Are Plants and Flowers Stakeholders? Do they have rights?)
Freeman (1984, P. 46) popularized the definition of a stakeholder as ‘. . . ANY group or individual who can affect or is affected by the achievement of the organization’s objectives’. This is a very broad definition meaning that in today’s global business environment any individuals and groups may be business’s stakeholders (Davey, 2015). This sparks the debate about whether or not the natural environment can be identifiable as a stakeholder. In the ethics in practice case ‘Are Plants and Flowers
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This perceives appropriateness or a shareholder’s claim to a stake. Stakeholder legitimacy is defined as a ‘desirable social good’, and legitimate stakeholders are those that ‘really count’ (Mitchell et al., 1997). Stakeholders with an obvious, formal and direct relationship to the company such as owners, customers, and employees have a high degree of legitimacy. Authors excluding the natural environment from being a stakeholder say the natural environment does not have a degree of legitimacy because of it lack of human characteristics and a lack of perceived obligation between it and organizations (Phillips and Reichart, 2000). However Haigh and Griffiths (2009) argue that the natural environment is a legitimate stakeholder because managers address environmental issues to maintain their ‘right to operate’.
Urgency is the degree to which an issue requires immediate action (Mitchell et al., 1997). Extreme weather, as a result of climate change fits this description because it can have devastating impacts. For example, major environmental disasters (e.g. storms and tsunamis) demand urgency and power as they often result in life threatening situations. This results in legitimacy as they require immediate reaction due to the nature of destruction and the effects on the economic, physical and social environment (Davey, 2015).
Power is the ability to influence others to
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