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Additional info for ACCA - P1 Professional Accountant: Study Text
Stakeholders in segment B do not have great ability to influence strategy, but their views can be important in influencing more powerful stakeholders, perhaps by lobbying. They should therefore be kept informed. Community representatives and charities might fall into segment B. Minimal effort is expended on segment A. Stakeholder mapping is used to assess the significance of stakeholders. This in turn has implications for the organisation. (a) The framework of corporate governance and the direction and control of the business should recognise stakeholders' levels of interest and power.
In working life this means adhering to principles of professionalism and probity. Straightforward dealing in relationships with the different people and constituencies whom you meet is particularly important; trust is vital in relationships and belief in the integrity of those with whom you are dealing underpins this. The Cadbury report definition highlights the need for personal honesty and integrity of preparers of accounts. This implies qualities beyond a mechanical adherence to accounting or ethical regulations or guidelines.
1 Legitimate and illegitimate stakeholders Stakeholder group Members Legitimate stakeholders Those who have valid claims upon the organisation Illegitimate stakeholders Those whose claims upon the organisation are not valid This is possibly the most subjective distinction of all, however it is also the most important. The stockholder view for example would make the distinction solely on whether the stakeholder had an active economic relationship with the organisation. Stakeholders who might be difficult to categorise in this way include pressure groups and charities.
ACCA - P1 Professional Accountant: Study Text by BPP Learning Media