Stakeholder Ques/on Skeleton

What is a stakeholder and the theory?

A stakeholder is a party that is interested in the performance and ac4ons of an organiza4ons. This
is different to the concept of a shareholder which is commonly misunderstood. A shareholder is
an individual who owns shares in an organiza4on and is directly influen4al in the organiza4on’s
decisions. Moreover, stakeholders can be consumers, employees, shareholders, suppliers, etc.
The stakeholder theory looks at these various groups which the organiza4on has a responsibility
towards. It focuses on the idea that corpora4on don’t only work on the interests of shareholders
alone.

Iden2fy the relevant stake holders.

- Consumers
- Investors
- Government
- Ac4vists

The stake holder theory consists of three aspects. Norma4ve is a stake holder theory that
aGempts to provide a reason why corpora4ons should take into account the stakeholders
interests. Instrumental stakeholder theory aGempts to answer the ques4on of whether it is
beneficial to take into account and descrip4ve stakeholder theory aGempts to ascertain whether
corpora4ons do take into account stakeholder interests.

Men2on and relate to which ethical theory they may have employed and why you see it this
way.

Define and Elaborate on the stake holder salience.

- Power
- Legi4macy
- Urgency

Iden2fy what a@ribute(s) they possess, and which stakeholder has which.
- Latent (Dormant, Demanding, Discre4onary)
- Expectant (Dangerous, Dependent, dominant)
- Latent (Defini4ve)
Past Papers:

2019-20

Sec2on A
Q)Make your case for why stakeholder management is crucial for business organisa4ons.

A) Overall the students answered this ques4on very well with many students scoring 60 and
above and quite a quite a few scoring dis4nc4on marks (and also quite a few who did not
score well). The good answers provided a detailed explana4on of the two views ie the
no4on of shareholder management and stakeholder management – shareholders
approach being businesses should focus on sa4sfying consumers, maximizing profits and
compliance with “rules and regula4ons” while and the state or government should focus
on social good. Where as stakeholder approach states that business also have social and
environmental responsibili4es beyond only economic responsibili4es. There should be
arguments about corporate ci4zenship and the changing business environment that leads
to the need for ‘stakeholder management’ Discussions around how stakeholder
management suggests businesses can be moral agents as well as legal agents using
different frameworks. The not so good answers would have missed one of the aspects or
would be more descrip4ve with no cri4cal discussion (or no limita4ons presented). There
were a few that were very basic and descrip4ve with no evidence of addi4onal reading.
Students can extend this discussion on how through stakeholder engagement companies
can also take the ‘correct’ decisions. A good answer will discuss these issues with
references and should support their discussions with examples of business cases.

Sec2on B
Q) You are the manager of JustCafe, a popular eatery which serves coffee, bubble tea and desserts
alongside a variety of fusion dishes. You are proud of your renowned food selec4on and excellent
service. Most of your staff have worked with you for over 3 years, unusual in an industry with high
turnover. This morning, your Head Chef has revealed to you that he is HIV posi4ve. Very
distressed, he asks you for assurance of con4nued employment, and confiden4ality. However,
you are troubled about allowing his con4nued work in the kitchens. You are also concerned about
how the other staff would react, and especially the customers should they find out. (Adapted
from Crane & MaGen, 2007, pg 132) What would you do in this situa4on, and why? Which
norma4ve ethical theory is your decision guided by? Clearly describe the theory within your
answer.

A) All good answers will need to clearly state what the Manager would decide, i.e. to
dismiss the Head Chef, to permit his con4nued employment in his current role, or another
course of ac4on. Termina4ng his employment would be guided by U4litarianism, as
customers would be the largest number of individuals the Manager would be protec4ng,
from poten4al harm of infec4on. A strong answer might analyse consequences (harm/
benefits) from the perspec4ve of each party involved. In contrast, the Manager might
 adopt a non-consequen4alist view, focusing instead on human dignity or the rights of the
Head Chef. With proper precau4ons (e.g. work reassignment to administra4ve func4ons),
where medical treatment is on-going, and no legisla4ons prohibit it, the Head Chef can
likely con4nue employment and contribute at JustCafe, in a different capacity. See table
below for a summary of norma4ve ethical theories. Strong answers could discuss/
incorporate descrip4ve ethics where appropriate

2020-21
Sec2on A
Q) Business organisa4ons may not be able to address needs of all stakeholders, due to the limited
resources they have - Discuss.

A) Overall, there was good performance in terms of answering this ques4on. The excellent
answers covered all key issues related to stakeholder management as follows - they
provided a good explana4on of why stakeholder management (as against shareholder
management) is important ie. where businesses also have social and environmental
responsibili4es beyond only economic responsibili4es. Students con4nue this discussion
of the prac4cal challenges for business to address all the stakeholders and how through
stakeholder engagement using tools like Stakeholder Salience Model, businesses can also
take the ‘correct’ decisions priori4zing stakeholders carefully. The good answers also have
a cri4cal discussion in the conclusions and all supported with references and with
examples of business cases. The not so good answers would have missed one of the
aspects or would be more descrip4ve with no cri4cal discussion (or no limita4ons
presented). There were a few answers that were very basic or simplis4c with no evidence
of addi4onal reading.

Sec2on B
Q) How do consequen4alist norma4ve ethical theories and non-consequen4alist theories differ?
Describe an ethical dilemma involving one organisa4on, and then cri4cally analyse it by applying
one norma4ve theory (either consequen4alist or nonconsequen4alist).

A) A majority of students aGempted this ques4on. Good answer showed understanding

that the consequen4alist norma4ve theories include egoism and u4litarianism and Non-
consequen4alist theories are ethics of duty and Rights and jus4ce – the answers explain
the key differences, looking at the outcome/ consequence, or by star4ng with principles.
A business ethical dilemma has to described and followed by selec4ng one theory to
cri4cally analyse the issue. There would also be a sec4on considering different
stakeholders, and demonstrate depth of arguments. The not so good answers, we too
descrip4ve with no applica4on of the theory to analyse the ethical dilemma iden4fied. In
some cases, a fic44ous dilemma was created instead using a real business case. Also
references or other forms of support for the discussion would be missing.
2021-2022
Sec2on A
Q) (a)Iden4fy four key stakeholder groups who are likely to be concerned with the issue and
discuss the probable demands of each group. (b) Which of the four stakeholder groups that you
have iden4fied in part (a) would senior managers of Zoopee priori4ze and/or choose to engage
with? Your jus4fica4ons should be based on Mitchell et al.’s (1997) stakeholder salience model.

A)Overall there were many very good answers and a few excellent answers. The excellent
answers not only correctly iden4fies four different stakeholder groups and their
expecta4ons/ demands; followed by an accurate and informed applica4on of Mitchell’s
stakeholder salience model. Explana4ons given should demonstrate a good grasp of
stakeholder theory and perspec4ves, and presented in a cri4cal yet balanced manner. The
response should be well-structured with a good overall flow. Clear examples are provided
to support the stakeholder analysis and jus4fy why Zoo-pee will engage with the various
stakeholders (e.g. Demanding/ Dominant/ Dangerous stakeholders vs. Dormant or non-
stakeholders). The rela4vely weaker answers, may have some missing stakeholders / lack
balanced answers, missed on a good cri4cal discussion based conclusions. The marks are
awarded based on the accuracy of informa4on, clarity of answer and the depth or scope
of ‘coverage’ of per4nent aspects points made

Sec2on B
Q) Contrast Egoism and Ethics of Duty; provide Organisa4onal examples A popular choice for
Sec4on B.

A)Some students provided excellent answers - demonstrated clear under-standing of both

theories, gave relevant organisa4on examples, and were able to clearly link each theory
to the orgz example(s). Weaker answers either: did not provide sufficient descrip4on/
elabora4on of one of the theories (e.g. ethics of duty), lacked an actual/ relevant
organiza4onal example of an ethical issue (e.g. gave a fic44ous example), or did not
sufficiently apply or cri4cally discuss the norma4ve ethical theory. Stronger answers
demonstrated very good evidence of further reading, cri4cal discussion, and original
thoughoul reflec4on.

2022-23
Sec2on A
Q) On October 13th 2022, the Sao Paulo state court in Brazil fined Apple Inc. a hepy sum of USD
$19 million, and ruled that new iPhones sold in Brazil must come with mobile phone baGery
chargers. The lawsuit was filed by an associa4on of borrowers, consumers and taxpayers
(AMBCC), they had argued that Apple “commits abusive prac4ces by selling its product without a
charger”. – Reuters. Star4ng with the iPhone 12 launched in 2020, Apple no longer includes wall
adapters in every box as it moves to “reduce package waste”. Customers therefore need to
purchase a mobile phone charger separately if they did not have one. This means Apple makes
money on this accessory purchase, so some like AMBCC argue that in reality a phone is
incomplete without a charger. Others go further and say that Apple’s ac4ons are unethical from
a business ethics perspec4ve. Drawing from what you have learnt in this course, how do you
interpret this situa4on? Your answer should discuss the views of different stakeholders (no more
than three), and incorporate an ethical theory if relevant.

A) Good answers covered discussion of at least three relevant stakeholders influencing

Apple Inc.’s business separately and at least one theory that is well explained and connects
to the case adequately that cuts across all stake holders in the discussion. Students may
also have a balanced view from Apple’s view point on recycling, reduce wastage and
sustainability issues. Dis4nc4on answers (70% and above) examined the viewpoints of
each stakeholder with more in-depth, covering concerns/expecta4ons in rela4on to
Apple’s decision and ar4culated different views cri4cally that are for and against Apple’s
decisions supported with relevant ethical theory, relevant examples and appropriate
cita4ons. Some students presented relevant points but examined fewer than three
stakeholder viewpoints. Other issues included lack clarity or elabora4on or a lack of
ethical theory. In some cases the theory is present, but it was not explained well in rela4on
to the candidate’s viewpoints.

Sec2on B
Q) In this module, we covered two non-consequen4alist norma4ve ethical theories. Some suggest
there isn’t very much difference between the two. Contrast these two theories, then apply one
non-consequen4alist theory to analyse an actual organiza4onal ethical dilemma.

A) . A very popular ques4on. There were two major requirements. Most students correctly
iden4fied the two nonconsequen4alist norma4ve theories. Common errors include: not
providing sufficient factual details especially for ‘rights and jus4ce’ (here, fair procedure
and fair outcome should also be explained, with elabora4on), and/or inaccurately
describing ethics of du4es or mixing up the defini4ons of the three maxims. This ques4on
also required students to apply one theory to illustrate an ethical dilemma in an
organiza4on. Students who did well in this sec4on named an organiza4on, clearly
described the ethical situa4on, and systema4cally applied the non-consequen4alist
theory to analyze the situa4on. There was evidence of cri4cal reflec4on, discussion and/or
further reading. Weaker answers provided a fic44ous organiza4on, did not provide
sufficient informa4on and/or did not make explicit connec4ons back to the theory.