Question:Southead is a large region with a rugged, beautiful coastline where rare birds have recently settled on undisturbed cliffs. However, today, many communities in Southead suffer high unemployment. Goodshovel Explorations has a reputation for maximizing shareholder returns and has discovered substantial tin reserves in Southead. With new technology, mining could be profitable, provide jobs and boost the local economy.
  However Goodshovel could face difficulties in proceeding because of the activities of a group called the Southead Protection Alliance. This group includes wildlife protection representatives, environmentalists, and anti-capitalism groups and is united under the slogan: 'Leave the birds alone.'
  Goodshovel's board sees the activities of the pressure group as irrelevant. The chairman has commented: 'Profits are our only concern. They should mind their own business. If this group attempts to disrupt our operations, we should seek the advice of the police.'
  How does Goodshovel's board view the Southead protection group?
  A. Narrow stakeholder
  B. Involuntary stakeholder
  C. Unknown stakeholder
  D. Illegitimate stakeholder
  The correct answer is: Illegitimate stakeholder.
  The board does not recognise the group's claims as legitimate. (Remember we are looking at this from the board's perspective; your own views may differ.)
  The group's existence is known to the board even though its individual members may not be. The board takes the view that the group has a choice of whether or not to be involved (it's a voluntary stakeholder). It doesn't believe that the group is particularly affected by the company's strategy (it's a wide stakeholder)