Professional Documents
Culture Documents
Stakeholders and
the Corporate Mission
PowerPoint Presentation by
An Integrated Approach Charlie Cook
Stakeholders and the Enterprise
Contributions
Inducements
Contributions Inducements
FIGURE 2.1
2-2
Stakeholder Impact Analysis
1. Identify stakeholders
2. Identify stakeholders’ interests and
concerns
3. Identify resulting claims stakeholders are
likely to make
4. Identify most important stakeholders (from
the organization's perspective)
5. Identify the resulting strategic challenges
2-3
Mission Statement
2-4
Vision, or Mission
A statement of purpose (strategic intent)
committing the organization to ambitious
overarching (stretch) goals.
Provides a sense of direction and purpose.
Drives strategic decision making
and resource allocations.
Forces the seeking of
significant performance
improvements to
attain goals.
2-5
Customer Orientation and Business Definition
Abell’s Framework
for Defining the
Business
Consumer-oriented
versus
Product-oriented
business definition
FIGURE 2.2
2-6
Values
2-8
The Corporate Governance Problem
On-the-job consumption
Elaborate and expensive
perks for top management.
Excessive pay not linked
to performance
Down markets and upward spirals of executive pay.
Empire building
Buying additional businesses that increase the size of
the company without increasing shareholder wealth.
2-9
The Tradeoff Between Profitability
and Growth Rate
FIGURE 2.4
2-10
Corporate Governance Mechanisms
Board of directors
Stock-based compensation
Corporate takeovers
Takeover constraints
Corporate raiders
Greenmail
Leveraged buyouts
Managers offer to exchange equity for debt in a
leveraged buyout (purchase of the company).
2-11
Strategy and Ethics
2-12
Thinking Through Ethical Problems
FIGURE 2.5
2-13
Corporate Social Responsibility
Con:
A firm’s primary obligation is to maximize profits for
its stakeholders in open competition.
2-14