Evan And Freeman

Stakeholder theory looks at the relationships between an organization and others in its internal and external environment. It also looks at how these relationships affect how the organization conducts its activities. You can think of a stakeholder as a person or organization that can affect or be affected by your organization. Stakeholders can come from inside or outside of the

The purpose of this paper is to recognize the definition and what a stakeholder is and what it does. I will also explain the two groups of the stakeholders and put the stakeholders in the group where they belong. I will explain what the stakeholders responsibilities are, what their ethical responsibilities to the company. Will explain what would be the appropriate response to the situation in the company. And finally explain what Joe should propose to the management team and how Joe should support his proposal.

People often think of stakeholders as people with a monetary stake in an organization, but not necessarily true anymore. In the past, people considered stakeholders the people with a financial stake in the organization that would receive profits from the success of the business. Today stakeholders cover a much broader spectrum of people such as funders, administration, staff, volunteers, community, and the target population (Yuen/Terao, 2003). Each group of stakeholders has his or her influence on the program plan as well as the success of a human service organization and programs services (Yuen/Terao, 2003).

i – A stakeholder can be an external or internal figure who affects or is affected by any actions, objectives or policies put into place by a business. For example, a creditor or owner. An internal stakeholder would be someone within the business who's affected by decisions made, such as an employee rather than an external stakeholder who would be someone on the outside of the business who is interested in it’s success. A stakeholder will require useful financial information about the business, as well as information about their future position and how things may change, for example any changes to employment or income that may be imminent.

Before anything, clarifications on the concept of the “invisible hand” is crucial in understanding the arguments and analysis processed through my essay. The theory of the Invisible Hand states that if each consumer is allowed to choose freely what to buy while each producer is blessed with the power to choose freely what to sell and how to produce the products, the market will settle on an equilibrium of prices and distributions that are constructive and beneficial to every individual members of a community, therefore benefit to the community as a whole. The

In general ,the stakeholder approach may be more conducive to balancing a wide variety of corporate interests and thereby discouraging impropriety.Executives and boards should take the perceptions of both shareholders and stakeholders into account when formulating strategy and enunciate their stance in all organizational communications. Only within that kind of clearly delineated context, can managers be expected to make appropriate decisions. Indeed, some of the most successful businesses are those which have embraced stakeholder values for example Bodyshop. However, we see that generally, shareholder value

Stakeholders are people or groups with interest in an organization that can affect or be affected by the organization itself, its objectives, or its policies (BusinessDictionary, 2015). Each stakeholder brings their own perspective to the table based on their relationship with the organization (e.g. internal or external role), their level of experience, and their area of expertise about the subject matter they are involved with. At a high level, the list of stakeholders for any organization could include people or groups such as: customers, employees, government agencies, suppliers, unions, community resources, shareholders, and business owners. For the purpose of this assignment, I will discuss and review stakeholders relative to the

Deontology is an ethical theory concerned with duties and rights. The founder of deontological ethics was a German philosopher named Immanuel Kant. Kant’s deontological perspective implies people are sensitive to moral duties that require or prohibit certain behaviors, irrespective of the consequences (Tanner, Medin, & Iliev, 2008). The main focus of deontology is duty: deontology is derived from the Greek word deon, meaning duty. A duty is morally mandated action, for instance, the duty never to lie and always to keep your word. Based on Kant, even when individuals do not want to act on duty they are ethically obligated to do so (Rich, 2008).

Consequently, the model of stakeholder by Edward Freeman has broadly considered as the strongest theory regarding responsibilities of a company towards society where the company is located (Freeman 2008 pp. 162-165).

Business is a changing scenario and it has different principles and rules in different environments. To perform a business, there is required a set of principles and rules to be based, so that the actions taken are proper and produce the desired results. (Shoemaker, 1999)Utilitarianism is an ethical theory for ranking various outcome from interpersonal stand point .it is a concept which is based on the theory of performing the right action to produce the right consequence where the benefits are maximised and sufferings are reduced to a minimum. (Gaus, 2001)Deontology is a theory in which only right making properties are good promoting properties. Which is based on being acting based o morality and having a correct motive which ends in all good and no bad.

The first key group of stakeholders are the employees. These include both managers and regular employees at all levels of the organization. The managers are in charge of overseeing certain departments within the corporation. Managers must also work to implement the company strategy and work towards accomplishing the company’s

In the late 18th century one of the most influential philosophers by the name of Immanuel Kant introduced the third major ethical philosophy, Deontology. The basis behind Deontology is that people are duty bound to act morally by certain standards despite the outcome. Determining whether a person’s actions are morally right involves look at the intent of the actions. Like other ethic theories, Deontologist applies the golden rule of treating other people the way you would want them to treat you. Deontology can be broken down into three different theories: agent-centered, patient centered, and contractualist. Each branch of Deontology can be traced back in some way to Immanuel Kant. Can Deontology be applied to today’s society?

Stakeholders are individuals or groups that partake, or assert, possession, privileges, or benefits in a, organization and its accomplishments, previously currently, and in the upcoming (Barrett, 2001). These requested privileges or benefits are the result of communications with, or activities reserved by the organization, and they must be lawful or ethical, separate or combined Stakeholders with comparable benefits, entitlements, or privileges can be categorized as fitting into the similar collection: personnel, investors, and clients (Barrett, 2001). The better the impact these groups have on client’s lives and the extra community assets with which they are assigned, and it becomes vital that they are responsible (Barrett, 2001).

After bashing the old idea of managerial capitalism, Freeman starts explaining why his reconceptualized stakeholder concept is much more logical. Freeman modestly articulates a stakeholder theory using the “narrow definition” of a stakeholder, which includes those who are vital to the success and survival of a corporation. Specifically, these stakeholders include owners, management, suppliers, employees, customers, and the local community. As well as being directly connected with the corporation, Freeman argues that the stakeholders are also interconnected with each other as well, and that each stakeholder is vital to the survival of the corporation, and vice versa. Employees rely on the business to give them a paycheck; the business provides their livelihood. Employees return the favor because they run the business on a day to day basis. Suppliers are vital to the firm’s success because the quality of the raw materials purchased will determine the quality and price of the final good produced by the firm. As a result, the firm is a customer of their supplier, and is therefore vital to their supplier’s success. The next stakeholder, customers,

The stakeholder theory made popular by Ed Freeman (1984) does seem to represent a major advance over the classical view (Freeman, 1984). It might seem inappropriate to refer to the stakeholder position as neoclassical. Bowie (1991: 56-66) has defined stakeholders as a group whose existence was necessary for the survival of the firm--stockholders, employees, customers, suppliers, the local community, and managers themselves.