Sources of Liquidity and Liquidity Pos ...
The degree to which a corporation can satisfy its short-term obligations using cash... Read More
Proper stakeholder management is critical to the success of any organization. It involves taking appropriate steps to identify, prioritize and understand each stakeholder group so as to manage them effectively. Effective communication and engagement are, therefore, necessary if an organization wants to reap optimal benefits from its stakeholder management.
The approaches to stakeholder management may vary across organizations. Typically, however, organizations try, as much as possible, to balance stakeholder interests. This has the effect of limiting any potential conflicts.
Stakeholder Management Components
To facilitate balancing of stakeholder interests, corporate governance and stakeholder management frameworks reflect legal, contractual, organizational, and governmental infrastructures. These four components define the rights, responsibilities, and powers of each stakeholder group.
Legal Infrastructure
Legal infrastructure defines the framework for legally establishing rights as well as the remedial action to be taken for violations of these rights.
Contractual Infrastructure
Contractual infrastructure refers to the contractual arrangements which are entered into by an organization and its stakeholders and which help to define and secure the rights of both parties. An organization has the most control over this component of stakeholder management as compared to other components.
Organizational Infrastructure
Organizational infrastructure refers to the internal systems and governance practices that an organization uses to manage its stakeholder relationships.
Governmental infrastructure
Governmental infrastructure refers to the regulations which are imposed on an organization by the government.
Question
The component of stakeholder management which refers to the internal systems, governance procedures, and practices which are adopted and controlled by an organization in managing its stakeholder relationships is called:
- Legal infrastructure.
- Contractual infrastructure.
- Organizational infrastructure.
Solution
The correct answer is C.
Organizational infrastructure refers to the internal systems, governance procedures, and practices that are adopted and controlled by an organization in managing its stakeholder relationships.
A is incorrect. The legal infrastructure is established by law.
B is incorrect. The contractual infrastructure refers to the contractual relationship between an organization and its stakeholders.
Sergio Torrico
2021-07-23
Excelente para el FRM 2
Escribo esta revisión en español para los hispanohablantes, soy de Bolivia, y utilicé
AnalystPrep para dudas y consultas sobre mi preparación para el FRM nivel 2 (lo tomé una sola vez y aprobé muy bien), siempre tuve un soporte claro, directo y rápido, el material sale rápido cuando hay cambios en el temario de GARP, y los ejercicios y exámenes son muy útiles para practicar.
diana
2021-07-17
So helpful. I have been using the videos to prepare for the CFA Level II exam. The videos signpost the reading contents, explain the concepts and provide additional context for specific concepts.
The fun light-hearted analogies are also a welcome break to some very dry content.
I usually watch the videos before going into more in-depth reading and they are a good way to avoid being overwhelmed by the sheer volume of content when you look at the readings.
Kriti Dhawan
2021-07-16
A great curriculum provider. James sir explains the concept so well that rather than memorising it, you tend to intuitively understand and absorb them.
Thank you ! Grateful I saw this at the right time for my CFA prep.
nikhil kumar
2021-06-28
Very well explained and gives a great insight about topics in a very short time. Glad to have found Professor Forjan's lectures.
Marwan
2021-06-22
Great support throughout the course by the team, did not feel neglected
Benjamin anonymous
2021-05-10
I loved using AnalystPrep for FRM.
QBank is huge, videos are great.
Would recommend to a friend
Daniel Glyn
2021-03-24
I have finished my FRM1 thanks to AnalystPrep. And now using AnalystPrep for my FRM2 preparation. Professor Forjan is brilliant. He gives such good explanations and analogies. And more than anything makes learning fun. A big thank you to Analystprep and Professor Forjan. 5 stars all the way!
michael walshe
2021-03-18
Professor James' videos are excellent for understanding the underlying theories behind financial engineering / financial analysis. The AnalystPrep videos were better than any of the others that I searched through on YouTube for providing a clear explanation of some concepts, such as Portfolio theory, CAPM, and Arbitrage Pricing theory. Watching these cleared up many of the unclarities I had in my head. Highly recommended.