Creating Value for Stakeholders Creates Success and Advancement

571 WordsJan 26, 20182 Pages
From the beginning of time, creating value for stakeholders have been the main frame for success and advancement; from the hunter age to warrior age, craftsman age to explorer age… and on until now. For every management philosophy in the business world that regards maximization of the interests of its all stakeholders (shareholders, customers, financiers, employees and the community) as its highest objective. Its objective is to maximize this value by following policies: that can minimize the cost and waste while improving the quality of its product, enhance the skills and satisfaction of its employees, and contribute to the development of the community from which it draws its resources and sustenance. Compare with shareholder value approach. Where should I placed my employees, customers, and all others whom are related to my business; how can I creating the value for all of them? Without stakeholders of any type, there would be no business. There more and more every day that we see, read, and hears from all variable sources that stakeholder value has been wiping out in the past several years as a result of mismanagement and bad execution of strategy than was lost through all the past scandals. True be told, creating value for customers helps sell products and services, while creating value for all stakeholders and shareholders. From a financial perspective, value is said to be created when a business earns revenue (or a return on capital) that exceeds expenses. But others

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