Stakeholder Management Flashcards

Which approach best reflects 'creating shared value' as described by Porter and Kramer?

Answer: Pursuing business strategies that create economic value by addressing societal needs

Shared value links company success with social progress by redesigning products, value chains, or local clusters.

Which strategy is most appropriate for a low-power, high-interest stakeholder group, such as end users of a new system?

Answer: Keep them adequately informed and consult on details

High-interest, low-power stakeholders should be kept informed and can provide valuable input and early warnings.

Which of the following best describes a 'latent' stakeholder?

Answer: A stakeholder possessing only one salience attribute

Latent stakeholders—dormant, discretionary, or demanding—hold only one of power, legitimacy, or urgency.

A project manager notices a key stakeholder repeatedly skipping status meetings. What is the best response?

Answer: Meet one-on-one to understand their needs and adjust engagement

Disengagement is a signal to investigate needs and tailor engagement rather than assume consent.

What is the primary purpose of a stakeholder communication plan?

Answer: To specify what information is delivered to whom, when, and how

A communication plan defines the content, audience, frequency, and channel of stakeholder communications.

Management argues that raising wages will reduce turnover and therefore benefit shareholders. Which assumption is required for this argument?

Answer: Turnover costs exceed the added wage expense

Shareholders benefit only if savings from lower turnover outweigh the higher wage costs.

A firm faces opposition from an environmental NGO with no legal standing but strong media reach. Which attribute gives the NGO salience?

Answer: Power through public opinion and media influence

Power can be normative or symbolic, and media influence lets the NGO shape public perception and pressure the firm.