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CS Professional · Environmental, Social and Governance (ESG) - Principles and Practice · Governance Influencers

Kaveri Logistics Ltd. wants to identify which stakeholders deserve the most management attention in its annual sustainability exercise. It rates each group on power over the company, legitimacy of its claim and urgency of its demand. A group possessing all three attributes is treated as the top priority. This approach is best known as:

This is Mitchell's stakeholder salience model. It ranks stakeholders on power, legitimacy and urgency, and a group with all three attributes is a definitive stakeholder deserving top priority. The other tools analyse industry competition, internal strengths or business portfolios rather than stakeholders.

  1. AMitchell's stakeholder salience modelCorrect
  2. BPorter's five forces analysis
  3. CSWOT matrix
  4. DBCG growth-share matrix

Explanation

Mitchell, Agle and Wood's salience model classifies stakeholders by power, legitimacy and urgency; those with all three are definitive stakeholders. Porter's model analyses industry competition, SWOT audits strengths and weaknesses, and BCG classifies business portfolios.

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