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Chapter 7
Narrow and wide stakeholders
Narrow: who are dependent on corporation output e.g. shareholders,
employees
Wide: less dependent on company output e.g. government
Primary and secondary stakeholders
Primary: those that have a direct affect on the company and without whom it
would be difficult to operate e.g. government
Secondary: those that have a limited direct influence on the organisation and
without whom the company would survive e.g. the community
Active and passive stakeholders
Active: those that wish to participate e.g. management but may also include e.g.
environmental pressure groups
Passive: those that do not wish to participate e.g. customers.
Voluntary and involuntary stakeholders
Voluntary: those stakeholders that choose to be involved in organisational
decision making e.g. management.
Involuntary: those stakeholders that do not choose to be involved in
organisational decisions e.g. regulators
Legitimate and illegitimate stakeholders
Legitimate: those with an active economic relationship e.g. suppliers
Illegitimate: those without such a link e.g. terrorists,
3.4 Assessing stakeholder importance – Mendelow’s Matrix
Interest
Power Low High
Low Minimal Effort Keep informed
High Keep Satisfied Key Players
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