A stakeholder's ability or capacity to produce an effect within the firm is called its

Question

Quizplus · Accepted Answer

Power refers to a stakeholder's ability or capacity to produce an effect within the firm. This effect can be positive or negative and may range from direct influence on decision-making to indirect influence through resource control or social pressure. Legitimacy refers to the stakeholder's right to participate in decision-making, urgency refers to the importance or time-sensitivity of the stakeholder's issue, and coercion refers to the use of force or threat to achieve a desired outcome. While all of these factors may be important for understanding stakeholder influence, power is the best choice in this case as it focuses specifically on the stakeholder's capacity to produce an effect within the firm.

A Stakeholder's Ability or Capacity to Produce an Effect Within