Governance And Stakeholder Management : Case Study : Perth Arena

25. A number of European countries require public companies to include employee members on their boards of directors, so: A. The employees are available to answer questions. B. Management does not have to attend the meetings. C. That their interests will be explicitly represented. D. They have more power than any other stakeholder. 26. Stakeholder groups can include: A. Stockholders. B. The media. C. Environmental activists. D. All of the above. 27. Which one of the following is considered to be a nonmarket stakeholder of business? A. Customers. B. Media. C. Creditors. D. Stockholders. 28. Which of the following is not considered to be a nonmarket stakeholder? A. Government agencies. B. The natural environment. C. Activist groups. D. Non-governmental organizations. 29. The phenomenon of a person or group holding multiple stakeholder duties is referred to as: A. Role sets. B. Primary Stakeholder(s). C. Ownership Theory. D. None of the above. 30. A stakeholder analysis: A. Creates equality among all stakeholder interests. B. Allows managers to examine two primary questions. C. Involves understanding the nature of stakeholder interests. D. All of the above. 31. The four types of stakeholders' power recognized by most experts are: A. Voting,

The fundamental issue in stakeholder management is to specify stakeholders or answer this question that who stakeholders are. There is not much agreement on stakeholder definition among researchers and project management experts. Mitchel states that various concepts in relation to stakeholder definition is due to their views to organisation or firm. So there are narrow and broad definitions. For instance, Freeman’s definition is broad one. He defines stakeholder as any group or individual who can affect or be affected by the achievement of organisation or firm’s objectives. In contrast, Clarkson has narrower view as he considers risk for stakeholder concept. He believes this risk is due to form of investment in that firm. In fact, basis of narrow view can be due to limitation in resources, budget, time or form of organisation’s asset. PMBOK’s stakeholder definition is similar to Freeman’s definition. The only difference is that organisation is also can be a stakeholder and influence or impact can be due to decision or outcome of a project.

Managers in today’s corporations have to deal with government regulations, corporate critics, media attacks & major competition from other firms (Freeman, 2010). According to Carroll (1991) Corporate Social Responsibility consists of four elements, which are in the form of a pyramid consisting of philanthropic at the top of the pyramid followed by legal, social & economic responsibility towards the bottom of the company. Furthermore stakeholder management is a very important contributing component of a successful business & the support of stakeholders can be gained through customer loyalty, cooperation with partners, investment

Management environment has been described over the years by the stakeholder theory. The stakeholder's salience theory was developed by Mitchell, Angle and wood (1997) and further developed by Gifford (2010) (Majoch et., al, 2014). The theory brings together three essential concepts that are used by managers to categorize different stakeholders characteristically. These ideas include power, legitimacy, and urgency which refer to the various stakeholder's attributes. Stakeholder salience theory also rises to systematize what makes the claims of one stakeholder's group take precedence before the other groups. Power is the ability of stakeholders to impose their influence on the outcome of the different projects or deliverables of the organization mostly through coercive means. Legitimate stakeholders are those seen mainly as those who have appropriate actions and operates

What is the concept of stakeholder management? The traditional view of a company indicates that

INTRODUCTIONThe introduction of the concept of stakeholder theory can be traced back in the 1960s (Stoney and Winstanley, 2001),however the concept gained grounds with the publication of Freeman’s (1984) book, Strategic Management: A Stakeholder Approach. Till now most writers with stakeholders as a central theme have shown numerous theoretical and empirical studies about this concept (Donaldson and Preston, 1995). The concept about stakeholders in an organisation is very paramount, however, far too less work have been shown to consolidate and implement the study, that can help the realistic use of stakeholder management in our contemporary firms (Donaldson and Preston, 1995). This essay strive to critically evaluate how stakeholder management can have impact on business and management practices and decision making. In answering this question, this paper will attempt to air the view of other relevant articles or authors to solidify, yet a demonstrative approach to successfully manage stakeholder relations. HOW TO IDENTIFY A STAKEHOLDER AND IT’S IMPORTANCEThe first issue under stakeholder management is to identify your stakeholders, in short, who are the relevant stakeholders in an organisation?…..ref.. (Mitchell et al., 1997) in their previous work has identified stakeholders in different and various ways, nevertheless, Freeman (1984, p. 46): has given a well noticed definition for as “A stakeholder in an organisation is (by definition) any group or individual who can

Policy development is a complex process which frequently takes place in an unstable and rapidly changing context, subject to unpredictable internal and external factors. As a cross-sectional view of an evolving picture, the utility of stakeholder analysis for predicting and managing the future is time-limited and it should be complemented by other policy analysis approaches.

There has been some debate on the legitimacy of the concept of the stakeholder, according to Friedman and Miles. “The stakeholder concept has not gone unchallenged. Many have reiterated the alternative stakeholder positions. Others have challenged implications of the stakeholder concept for certain groups” (Friedman and Miles 118). Friedman and Miles go on to argue how stakeholders can weaken an organization, and even alter its long-term characteristics.

By expanding the spectrum of interested parties, the stakeholder theory stipulates that, a corporate entity invariably seeks to provide a balance between the interests of its diverse stakeholders in order to ensure that each interest constituency receives some degree of satisfaction (Abrams, 1951). The stakeholder theory is therefore appears better in explaining the role of corporate governance than the agency theory by highlighting the various constituents of a firm. Thus, creditors, customers, employees, banks, governments, and society are regarded as relevant stakeholders. Related to the above discussion, John and Senbet (1998) provide a comprehensive review of the stakeholders’ theory of corporate governance which points out the presence of many parties with competing interests in the operations of the firm. They also emphasize the role of non-market mechanisms such as the size of the board, committee structure as important to firm

It is important to mention at this stage of this paper that Freeman’s stakeholder theory mentioned above proposed extended focus of managers beyond traditional interest group of shareholders, in order to understand expectations, needs and values of groups which where perceived external to the organization. In this sense, stakeholders of a company can be defined as individuals, their groups or agencies that, either voluntarily or involuntarily, takes part in wealth-creating capacity and activities, and who will be or are benefited from company or can also be its risk bearers. Stakeholder theory has both normative (moral/ ethical) and instrumental (profit/ wealth enhancing) implications. These strategic approaches can be regarded as a responsibility to meet claims of all stakeholders and/ or as a means to maximize organizational wealth. (Donaldson and Preston, 1995).

Corporate Governance provides the guidelines as to how the company can be directed and controlled such that it can fulfil its goals and objectives in a manner that adds to the value of the company and is also beneficial for all stakeholders in the long term. Stakeholders will include everyone ranging from the board of directors, management, shareholders to customers, employees; in society the management of the company hence assumes the role of a trustee for all the others (Tricker, 2012).

This paper will discuss why a good corporate governance framework must incorporate stakeholder accountability. For the purpose of this paper, the term stakeholder governance will be used to incorporate all aspects of stakeholder accountability and engagement, that is; dialogue, decision making, transparent operations and implementation of solutions to common problems or goals.

Within seven (7) calendar days after the end of every month a comprehensive project progress report shall be provided covering every significant aspect of the works. Progress Monthly Reports shall include:

Literature review presented in this chapter covers areas that are relevant to the research and its objectives. By critically examining the literature, a pattern within literature is built that provides deeper insight into the topic. The focus was to understand different ways that authors have interpreted the concept of stakeholder management and try to answer some of the research questions. Review of different publications assisted the researcher to gain a better understanding of theoretical perspective and keep the researcher well informed of the subject.

* The governance practices of the company indicate that it is following the stakeholder theory when it comes to running its business. The company believes that it has a responsibility not only to its shareholders but also to other various stakeholders such as employees, communities, customers, suppliers, environment etc. The company has shown commitment to improving the stakeholder’s welfare and not just focusing on the company profits.