Page 99 - SBL Integrated Workbook STUDENT 2018

Stakeholders and corporate social responsibility

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 effect 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,

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