Accountant In Business F1 Models

Stakeholder mapping: power and interest

Mendelow suggests that stakeholders may be positioned on a matrix whose axes are power
held and likelihood of showing an interest in the organisation's activities.
These factors will help define the type of relationship the organisation should seek with its
stakeholders.

LOW HIGH
LOW LOW

A B

Power
Held

C D

HIGH HIGH

LOW Level of interest HIGH

Key players---- are found in segment D: strategy must be acceptable to them, at least.
An example would be a major customer.
These stakeholders may even participate in decision-making.

Stakeholders in segment C must be treated with care.

While often passive, they are capable of moving to segment D.
They should therefore be kept satisfied.
Large institutional shareholders might fall into segment C.

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.

A single stakeholder map is unlikely to be appropriate for all circumstances.
In particular, stakeholders may move from quadrant to quadrant when different potential future
strategies are considered.
Stakeholder mapping is used to assess the significance of stakeholder groups.
Implications for the organisation.

The framework of corporate governance should recognise stakeholders' levels of

interest and power.

It may be appropriate to seek to reposition certain stakeholders and discourage others

from repositioning themselves, depending on their attitudes.

Key blockers and facilitators of change must be identified.

Each of these groups has three basic choices.

Loyalty. They can do as they are told.
Exit. For example by selling their shares, or getting a new job.
Voice. They can stay and try to change the system.
Those who choose voice are those who can, to varying degrees, influence the organisation.
Influence implies a degree of power and willingness to exercise it.

The Data Protection Act 1998

The (UK) Data Protection Act 1998 protects individuals about whom data is held.
Both manual and computerised information must comply with the Act.
The Data Protection Act 1998 is an attempt to protect the individual.
The terms of the Act cover data about individuals not data about corporate bodies.
(Remember that you will not be examined on the details of the UK's Data Protection Act but the
syllabus states that you must be able to identify the principles of data protection and security).

Personal data is information about a living individual, including expressions of opinion

about them.
Data about organisations is not personal data.

Data users are organisations or individuals who control personal data and the use of personal
data.
A data subject is an individual who is the subject of personal data.

The data protection principles

The UK Data Protection Act includes eight Data Protection Principles with which data users
must comply.

DATA PROTECTION PRINCIPLES

Schedule 1 of the Act contains the data protection principles.

Personal data shall be processed fairly and lawfully in accordance with the Act.
Personal data shall be obtained only for one or more specified and lawful
purposes, and shall not be further processed in any manner incompatible with
that purpose or those purposes.
Personal data shall be adequate, relevant and not excessive in relation to the
purpose or purposes for which they are processed.
Personal data shall be accurate and, where necessary, kept up to date.
 Personal data processed for any purpose or purposes shall not be kept for longer
than is necessary for that purpose or those purposes.
Personal data shall be processed in accordance with the rights of data subjects
under this Act.
Appropriate technical and organisational measures shall be taken against
unauthorised or unlawful processing of personal data and against accidental loss
or destruction of, or damage to, personal data.
Personal data shall not be transferred to a country or territory outside the
European Economic Area unless that country or territory ensures an adequate
level of protection for the rights and freedoms of data subjects in relation to the
processing of personal data.

The Act has two main aims:

To protect individual privacy. Previous UK law only applied to computer-based

information.
The 1998 Act applies to all personal data, in any form.
To harmonise data protection legislation so that, in the interests of improving the
operation of the single European market, there can be a free flow of personal data
between the member states of the EU.

The rights of data subjects

The Act establishes the following rights for data subjects.

A data subject may seek compensation through the courts for damage and any
associated distress caused by the loss, destruction or unauthorised disclosure of
data about themselves or by inaccurate data about themselves.
A data subject may apply to the courts for inaccurate data to be put right or even
wiped off the data user's files altogether.
Such applications may also be made to the Registrar.
A data subject may obtain access to personal data of which they are the subject.
(This is known as the 'subject access' provision.) In other words, a data subject
can ask to see their personal data that the data user is holding.
A data subject can sue a data user for any damage or distress caused to him by
personal data about them which is incorrect or misleading as to matter of fact
(rather than opinion).