Skip to content

ACCA Strategic Professional · Strategic Business Leader · Stakeholder analysis and organisational social responsibility

Halden Telecom is described by its chair as 'proactive': it designs products to avoid social harm, engages stakeholders before regulation arrives, and reports openly on impacts. Using Lyon-style or similar classification of CSR strategy (reactive, defensive, accommodative, proactive), which implication follows from this strategy?

A proactive strategy means the company anticipates social expectations, engages stakeholders early and often exceeds legal requirements, accepting some cost to gain reputation and legitimacy. Reactive, defensive or accommodative firms instead deny, do the minimum or respond only after pressure from regulators, media or campaigners.

  1. AIt will deny responsibility and resist external pressure until forced to act
  2. BIt will do the minimum required by law and only when challenged
  3. CIt will anticipate social expectations and seek to lead, accepting some cost for reputation and legitimacyCorrect
  4. DIt will act only after pressure groups and the media have forced a response

Explanation

A proactive strategy anticipates responsibilities and goes beyond compliance, engaging stakeholders early. Defensive and reactive strategies do the minimum or deny, and accommodative responds when pressed. Proactive firms accept cost to build legitimacy and reputation.

Did you get it right without looking?

One question tells you little. A timed set on Stakeholder analysis and organisational social responsibility shows your real accuracy, how long you take and where you lose marks.

Practise Stakeholder analysis and organisational social responsibilityFree diagnostic mock

More Stakeholder analysis and organisational social responsibility questions