ACC341 - Topic 9

Stakeholder Theory can help managers in solving ethical problems, such as the environment, and gives managers a practical framework for assessing and balancing interests as long as normative principles are the foundation upon which decisions are made.

Normative principles are incorporated into organisational decision making, and it allows managers to give an unbalanced or biased weighting of issues in order to preserve ethical integrity.

Assessing stakeholders is often based on descriptive, not normative, assumptions.

All of the given options are correct.

Seek to educate and inform its 'relevant public' about actual changes in the organisation's performance and activities.

Seek to change the perceptions that 'relevant public' have of the organisation's performance and activities.

Seek to manipulate perception by deflecting attention from the issue of concern onto other issues to demonstrate how the organisation has fulfilled social expectations.

All of the given options are correct.

Gain the support of powerful stakeholders

Report on the activities of management with respect to each stakeholder

Explain why profits may have been sacrificed in order to respect the minimum rights of some stakeholders

All of the given options are correct.

The moral perspective is empirically testable

The moral perspective is more 'organisation-centred'

The managerial perspective is empirically testable

The managerial perspective holds that all stakeholders have certain minimum rights that must not be violated

Legitimacy Theory does not rely on the assumption that all action is driven by individual self-interest.

Legitimacy Theory makes no assumptions about the efficiency of markets.

Legitimacy Theory suggests that organisations have a 'social contract' with society.

All of the given options are correct.