Exploration of the Manager’s Responsibility and the Role of Stakeholders

Exploration of the Manager’s Responsibility and the Role of Stakeholders

Most scholarship on corporate governance in the last two decades has

focused on the relationships between shareholders and managers. Some

people think :“ A manager’s responsibility should be to the

shareholders alone”, but in my opinion manager have the responsibility

to all of the stakeholders, which a group with a direct interest in

the way on organization is performing and action it takes, include the

firm’s employees, shareholders, customers, suppliers and local

community. In a company managing for value, the company’s goal is to

deliver value to shareholders. This does not imply that the company is

managed for value to harm or exclusion of the customers, the

employees, or other important consists. Manger delivers maximum

profits return to the shareholders while balancing the interests of

the other important constituents, including customers and employees.

Manager’s responsibility as a business is to define and enhance the

contribution make to that shared effort. Company must work with the

other stakeholders in sustainable development. Stakeholders are a

diverse group, some, such as shareholders and employees have a clearly

defined relationship with company. There are people with a stake in

the company itself. Others have a stake in the company’s activities.

Customers and suppliers are certainly affected by the success or

failure of company performs but not as directly as shareholder and

employees. The local communities that have a more interest in what

manager do and how manager do. The purpose of the manager for

stakeholder is to serve a wider range of inte...

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...all vital for company’s

perform. Make the profit maximization is the main aim of manager which

not means manager must harm one may be more of the stakeholders`

interest, because in today’s business activities require good

cooperation. The role of manager is to balance the interests between

company and stakeholders and lead to they prosperity together.

References

Dave Hall, Rob Jones, Carlo Raffo, Ian Chambers, Dave Gray(1999)

Business studies Causeway Press Limited

John S. (2004) Essentials of Economics Pearson Education Limited

John S. (2003) Economics Pearson Education Limited

Gartner, James, Lawson, Robert and Block, Walter. Economic Freedom of

the World: 1975-1995. Vancouver, B.C., Canada: Fraser Institute, 1996

Pam Woodall today’s business weekly Journal of Economics 40 (2004):

60-64.