Stakeholder Analysis

1755 words - 8 pages

STAKEHOLDER ANALYSIS
UNIVERSITY
July 14, 2014

Stakeholders are a powerful force in business from both an economic and societal point of view. “Stakeholder theory is a theory of organizational management and ethics.” (Phillips, 2003) Stakeholders are the individuals, groups, and organizations who can affect the firm’s vision and mission, are affected by the strategic outcomes achieved, and have enforceable claims on the firm’s performance.” (Hitt, Page 19) “Stakeholders can include employees, customers, owners/investor groups, suppliers, unions, professional /industry associations, government, community neighbors, NGOs, educational institutions, neighbors, the media and so on.” (Fowler, ...view middle of the document...

It is with active engagement with valued stake holders that can help an organization to remain current and responsive to essential needs.” (Fowler, 2014) Stakeholder theory is undermined in two directions: distortions and friendly misinterpretations. In the distortions, “stakeholder theory is an excuse for managerial opportunism” (Jensen 2000; Marcoux 2000; Sternberg 2000), which is not because the corporation is not coextensive with the shareholders. It is an entity unto itself. Wealth maximization imperative is frequently motivated by agency problems, decision making, control and risk. The concern is that without ethics, managers would enrich themselves at the expense of the organization. Another misunderstanding is

that the stakeholder theory is primarily concerned with distribution of financial outputs. Although finances is the base of the relationship, it’s not the primary. Stakeholder theory is concerned with who has input in decision-making as well as with who benefits from the outcomes of those decisions. “Focus on distribution and a de-emphasizing of procedures is not the only manner in which focus on distribution of outputs is a limitation on stakeholder theory-material outputs are not the sole subject of distribution. Information is another vital good that is distributed among stakeholders by the organization.” (Phillips, 2003). Also it is commonly asserted that stakeholders must be treated equally irrespective of the fact that some have more contribution than that of others. Therefore, it’s very difficult to please everyone, Organizations must attempt to distribute the benefits of their business as equitably as possible among stakeholders, but keeping in mind their respective contribution. “There are a few friendly misinterpretations about stakeholder’s theory, that it requires changes to current law. Stakeholder’s theory is socialism and refers to the entire economy and thus is a comprehensive moral doctrine and only applies to corporations.” (Phillips, 2003) These statements are misinterpretations and do not fall under Stakeholder’s theory thus are NOT Stakeholder’s theory. There are two components of Stakeholder theory: Stakeholder Analysis and Stakeholder Management. Stakeholder Analysis is the identification, categorization and prioritization of a firm’s strategic and operational purpose. Stakeholder Management is the fair treatment of all stakeholders (Fassin, Page 83)
Stakeholders are individuals and groups who can affect, and who are affected by the strategic outcomes of a firm and who have an enforceable claim on the firm’s performance.(Hitt, Page 21) Individuals or groups who can affect the achievement of a firms or who are affected by the achievement of an organization’s objective. (DeWitt, Page 617)
Some pressure groups, some confrontational activist groups, while having no organizationally outlined links, define and claim new stakes: They obtain to possess a voice within the corporation’s decision making and to...

Other Papers Like Stakeholder Analysis

Convening Stakeholder Networks Essay

3223 words - 13 pages foundation of my paper, I will be enlarging upon an analysis of the theories as mentioned in Dahl Rendtorff’s book, « Responsibility, Ethics and Legitimacy of Corporations ». The paper will continue with key arguments of the article : Convening stakeholder networks ; a New way of thinking, being and engaging by Ann Svendsen and Myriam Laberge. I decided to choose the theory concerning ethics of the external constituencies of the corporation because these

Stakeholder Essay

1590 words - 7 pages : Corporate Social Responsibility: the corporate citizenship which is defined in the ways Nike’s strategies and operating practices affect its stakeholder, the natural environment and the societies where the business operates. In this definition corporate citizenship encompasses the concept of csr which is involving Nikes explicit and mainly discretionary efforts to improve society in some way, but is also directly linked to the company business

Stakeholder Mapping

518 words - 3 pages Stakeholder mapping If OneLife are to go ahead with the take-over from Company F, many people involved internally and externally will be affected. To help categorise the different stakeholder groups, Mendelow’s (1991) power interest matrix will be used. This will help to highlight the different stakeholders involved and priorities the outcomes related to their power and interest in the organisation. (Adapted from Mendelow, 1991) Low Power

Stakeholder Management

692 words - 3 pages How to engage stakeholders Cadbury Schweppes has open and regular discussions with its stakeholders and uses different ways to communicate with different stakeholder groups: Shareowners - Cadbury Schweppes has over 60,000 registered shareowners. These include private individuals as well as large institutional investors, such as pension funds and banks. All shareowners are also entitled to attend the Annual General Meeting, at which they have

Customer Stakeholder

2820 words - 12 pages of any social or stakeholder obligations.^ Customers are key stakeholders that help establish the firm's reputation and identification. For example, today Procter and Gamble is considered a textbook marketdriven global powerhouse with billion-dollar brands such as Bounty, Olay, Tide, Crest, and Folgers.^ Understanding customer needs and wants and providing customers with high-quality products are the key to the company's success. A market

A Fire In The Global Village: Teaching Ethical Reasoning And Stakeholder Interests Utilizing Tobacco

4238 words - 17 pages A Fire in the Global Village: Teaching Ethical Reasoning and Stakeholder Interests Utilizing Tobacco Lucien J. Dhooge Sue and John Staton Professor of Law Journal of Legal Studies Education Volume 29, Issue 1, pages 95–125, Winter / Spring 2012 [T]is a plague, a mischief, a violent purger of goods, lands, health; hellish, devilish and damned tobacco, the ruin and overthrow of body and soul.( Richard Burton, The Anatomy of Melancholy (1621

Stakeholder vs Stockholder Theory

1146 words - 5 pages Larry Chapman Business Ethics Exam Two The Stakeholder theory of a firm is made up into equal percentages on a pie chart, which is made up of Financials, Suppliers, Employees, Customers and Communities. The Stockholder theory of a firm is made up by a pyramid structure consisting of Labor, Management, CEO, Board and Stockholders. I believe the Stakeholder theory is less ethical than the stockholder theory in terms of Libertarianism and

Yammer Stakeholder Engagement Assignment

1497 words - 6 pages IT Stakeholder Engagement Assignment Introduction This brief essay explores the features of Yammer, the benefits that will bring to Supercheap Auto and the potential concerns or risks that will bring by Yammer, a schedule plan for Yammer testing also gave. Supercheap Auto is a thriving specialty retail business, specialising in automotive parts and accessories. Currently there are over 280 stores across Australia and New Zealand and more than

Stakeholder Relationships Article Review

370 words - 2 pages Stakeholder Relationships Article Review Biondo (2006) defines stakeholders as, “The original meaning of the word stakeholder was a person who holds money while its owner is being determined—a trustee for a minor, for example, or someone holding the cash until a bet is won. But in the past few years, the definition, in the progressive business world at least, has evolved to mean someone, anyone, having a perceived beneficial interest in the

Stakeholder Compare and Contrast Essay

886 words - 4 pages Stakeholder Compare and Contrast Essay Chasity Smalls HCA 675 Grand Canyon University September 17, 2014 When referring to healthcare, defining the quality of healthcare can be different because there are various individuals involved with different views. These individuals with different views are stakeholders. “AHRQ, Agency for Healthcare Research and Quality, has

Needs of Stakeholder and Shareholder Obligations

861 words - 4 pages DB1: Needs of the Stakeholder and Shareholder Obligations The discussion board question to be addressed in this paper is how can a company focus on the needs of its stakeholders without neglecting its shareholder obligations? Answering this question will require defining both stakeholders and shareholders, identifying the corporation’s responsibility to each and then stating the solution. Shareholder According to Lewis and Weber, a

Related Essays

Stakeholder Analysis

1338 words - 6 pages Stakeholder analysis by Mohamed A. Abdrabo and Mahmoud A. Hassaan CEDARE 1. Objectives: 1.1 This document intends to provide background information on stakeholder analysis in terms of definitions, objective, need for conducting stakeholder analysis. 1.2 Also, the document aims to provide a systematic approach for conducting a stakeholder analysis within the framework of Wadi Project. 2. Background 2.1 Public issues in general and

Stakeholder Analysis Of Cp Buying Hsbc Share

2407 words - 10 pages Regulatory Commission Chinese Government Primary Stakeholders Owner : Dhanin Chearavanont Customers Employees Value Chain Partners In light of the discussion so far, the stakeholder analysis places the parties in this matrix: | HIGH INTEREST | LOW INTEREST | HIGH POWER | Chinese GovernmentChina Insurance Regulatory CommissionSocietyDhanin Chearavanont | | LOW POWER | Employees | UBSCompetitorsConsumersValue Chain Partners | Thus, the

Case Study Analysis: Monsanto Attempts To Balance Stakeholder Interests

541 words - 3 pages Case Study Analysis: Monsanto Attempts to Balance Stakeholder Interests Case Study Analysis: Monsanto Attempts to Balance Stakeholder Interests Monsanto is the largest agricultural company that specializes in both conventional and genetically modified organism (GMO) seeds and other products. Overall Monsanto has tried to maintain a good ethical culture to their different stakeholders. Because even with all the issues the organization

Analysis Of A Stakeholder

766 words - 4 pages The insurance companies hold a two sided, and very particular position when it comes to the health care reform. When the health care reform was in its infant stage, and just newly announced the insurers opposed the health care reform, mostly because when the health care reform is fully place the insurers would no longer be able to deny coverage for preexisting conditions. Another down side for insurance companies was the, minimum level of