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Relationship between businesses and stakeholders
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INTRODUCTION; DEFINITION OF A STAKEHOLDER
To well define what a stakeholder is becomes a difficult subject mainly because there many controversial and confusing factors to first address (Friedman & Miles, 2006). First, in a typical organization or if you need, a company, there emerge various types of stakeholders who occur in different levels and playing quite distinct roles (Savage et al, 1991). Secondly, the meaning of the term stakeholder when it comes to a particular point of view is bleached such that it considers only the major parties. A good example is the most governments’ view of the companies that thrive under their respective roofs where only the shareholders or well put, the owners, are considered as stakeholders regardless of whether or not there are other key participants in the overall management of these companies. Here, a stakeholder is considered as a person who has invested in the company or the (Friedman &Miles, 2006) organization in question by either contributing monetary support or as a co-founder of the organization. Such a person is involved in the making of major decisions for the organization. However, it is important to note that there are other role players of importance. Such include those people who are indirectly affected by the presence of an organization, for example, the end users or the receivers of the impacts of any decisions made.
Some definitions have been in work, although some are quite narrow. Some say that stakeholders are those groups or individuals without whose support, an organization would die. Others say that stakeholders as any naturally occurring entity that is directly affected by the organizational performance (Roberts & Mahoney, 2004). The word ‘naturally’ denotes all natu...
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... (2006). Stakeholders: Theory and Practice, Oxford University Press.
Jones, T.M., (1995). Instrumental Stakeholder Theory: A Synthesis of Ethics and Economics. Academy of Management Review, 24, 206-19.
Mitchel, R.K., Wood, J.D., Agle B.R. (1997). Towards a theory of stakeholders’ identification and salience: defining the principle of who and what really counts, Academy of Management Review, 22, 853-887.
Porter, M. (1980). Competitive Strategy: Techniques for Analyzing Industries and Competitors. New York: Free Press.
Roberts, R.W., and Mahoney, L. (2004). Stakeholder Concept of the Corporation: Their Meaning and Influence in Accounting Research, Business Ethics Quarterly, 14/3, 399-431.
Savage, G.T., Nix, T.W., Whithead, C.J., and Blair, J.D., (1991). Strategies for Assessing and Managing Organizational Stakeholders, Academy of Management Executives, 5/2, 61-75
Stakeholder is anyone with an interest in a business; stakeholders are individual, groups or businesses. They are affected by the activity of the business. There are two types on stakeholders who are internal and external. Internal stakeholder involves employees, managers/directors and shareholders/owners. External stakeholder involves suppliers, customers, government, trade unions, pressure groups and local and national communities.
In this essay I will be writing about the stakeholders of both The IPO and Waitrose. I will also be evaluating the impact of different types of stakeholders in one of these companies. Stakeholders can be any person or organisation that has an interest in the activities, goods and services of a business.
Stakeholders are individuals and constituencies that contribute, either voluntarily or involuntarily, to its wealth-creating capacity and activities, and who are therefore its potential beneficiaries and/or risk bearers1. There are several different types of stakeholders associated with a corporation, and those stakeholders can have different views and opinions on what corporation's goals should be and how they should be running. I have interviewed three different stakeholders of Staples Inc., an employee, a customer and a stock holder, to find their relationship between them and the firm. Then, I will use this information to suggest how the firm should proceed and continue to have a better and more beneficial relationship with its stakeholders.
Evan, William M. and Edward R. Freeman. “A Stakeholder Theory of The Modern Corporation: Kantian Capitalism.” Advanced College Essay: Business and Its Publics. Ed. Pat C. Hoy II and Denice Martone. New York: McGraw-Hill, 2002. 329-38.
A stakeholder is anyone whether involved or not involved that is interested in an outcome to a situation (Editorial Board, 2015).
Identifying stakeholders for an intervention is essential. Stakeholders are all of the individuals who are affected by and issue or problem (BOOK). The stakeholders are going to be the individuals who can work towards changing the problem and who deal with the concern at the front lines (BOOK).
The definition of stakeholder is “ Any group or individual who can affect or is affected by the achievement of the organizations objectives.” (Freeman, 1984). Three stakeholders that have been identified are old employees (50s-60s), young employees, and shareholders. These three stakeholders could be affected the most by the CEO’s decision.
Stakeholder analysis is important for successful implementation of projects and/or strategic activities within any organisation. It is used to analyse the stakeholders in order to understand them and classify them according to their power, influence and interest. Stakeholders are people who have an interest in a commercial entity including those within the organisation and outside. These include the boss, senior executives, customers, suppliers, government, your co-workers, the team and others. All these people are important in the implementation and success of strategy.
Hence, the stakeholders which are described as those who are affected by the organisation performance ,actions and duties and those actions includes employees, clients, local community and investors as well. The theory of stakeholders also suggests that it is the responsibility of firm to make sure no rights of stakeholders are dishonoured and make decisions in the interest of stakeholders which is also the purpose of stakeholder theory to make more profit and balancing it while considering its stakeholders (Freeman 2008 pp. 162-165). In the other words organisation must also operates in a more socially accountable approach by carrying out corporate social responsibility as (CSR) activities.
Stakeholders are those groups or individual in society that have a direct interest in the performance and activities of business. The main stakeholders are employees, shareholders, customers, suppliers, financiers and the local community. Stakeholders may not hold any formal authority over the organization, but theorists such as Professor Charles Handy believe that a firm’s best long-term interests are served by paying close attention to the needs of each of these stakeholders. The modern view is that a firm has responsibilities to all its stakeholders i.e. everyone with a legitimate interest in the company. These include shareholders, competitors, government, employees, directors, distributors, customers, sub-contractors, pressure groups and local community. Although a company’s directors owes a legal duty to the shareholders, they also have moral responsibilities to other stakeholder group’s objectives in their entirely. As a firm can’t meet all stakeholders’ objectives in their entirety, they have to compromise. A company should try to serve the needs of these groups or individuals, but whilst some needs are common, other needs conflict. By the development of this second runway, the public and stakeholders are affected in one or other way and it can be positive and negative.
Lawrence, A. T. & Weber, J. (2011). Business and society: Stakeholders, ethics, public policy (13th ed.). New York: McGraw-Hill/Irwin
Evan, W. M., & Freeman, R. E. (1988). A stakeholder theory of the modern corporation: Kantian
Stakeholders’ analysis is the analysis which tells that how the company is dealing with the people which are directly or indirectly related with the company’s operations. These are called stakeholder and they include the employee, society, suppliers, buyers, shareholders, got and other tax related companies.
Carroll, A. B. (1996). Business & Society: Ethics and stakeholders management. Cincinnati: South-Western College Publishing.
Stakeholders refer to individuals or groups of people that have an interest in a business. Management argues that as long as there is wealth for shareholders, then anything is done in a responsible manner and things should be done to promote the interest of other stakeholders.