Answer to Question #240027 in Management for Khwisti

Question

Define a “stake” and a “stakeholder” and describe the strategic, multifiduciary and synthesis approaches. 

Answer 1

Any individual or organization that is influenced by or has an impact on a business is referred to as a stakeholder. A stake is an important interest held by someone inside or outside the company, and it might include ownership interests, legal obligations, and moral rights.

Strategic approach - Views stakeholders primarily as factors managers should manage in pursuit of shareholder profits.

Multifiduciary approach -Views stakeholders as a group to which management has a fiduciary responsibility.

Stakeholder synthesis approach -Considers stakeholders as a group to whom management owes an ethical, but not a fiduciary, obligation.