The project management has evolved into a profession, and knowledge about various field covered under PMBOK has become necessary to be a successful project engineer/manager. This research paper section covers the process and method involved to identify stakeholders. The stated importance is that it is critical for the success of the project that we follow proper guidelines to identify various stakeholders for the success of the project. The implied importance is that stakeholder could have more cohesion during the beginning of the project once they
The Stakeholder Theory of the Corporation: Concepts, Evidence, and Implications Author(s): Thomas Donaldson and Lee E. Preston Source: The Academy of Management Review, Vol. 20, No. 1 (Jan., 1995), pp. 65-91 Published by: Academy of Management Stable URL: http://www.jstor.org/stable/258887 Accessed: 20/04/2010 23:08
This paper will have a detailed discussion on the shareholder theory of Milton Friedman and the stakeholder theory of Edward Freeman. Friedman argued that “neo-classical economic theory suggests that the purpose of the organisations is to make profits in their accountability to themselves and their shareholders and that only by doing so can business contribute to wealth for itself and society at large”. On the other hand, the theory of stakeholder suggests that the managers of an organisation do not only have the duty towards the firm’s shareholders; rather towards the individuals and constituencies who contribute to the company’s wealth, capacity and activities. These individuals or constituencies can be the shareholders, employees,
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.
Evan and Freeman believe that managers have a trust-keeping relationship to stakeholders. They think the modern corporation should be governed for the stakeholders and to their benefit. The theory that they believe in is the stakeholder theory of the firm. They believe that in the government today the stakeholders are being used as a means to some end and are not able to contribute in determining the prospect of the company that they have a stake in.
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
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).
The shareholder theory states that companies' objectives are represented by maximizing profits for shareholders, while not valuing the interests of stakeholders. The stakeholder theory states that companies' activity must be oriented towards producing benefits for categories of stakeholders like employees, customers, managers, investors, governments, the society, and others. The different views on companies' objectives reflect the complexity of the issue.
Within this essay an analyses will be taking a close inspection of two articles in an attempt to derive a deeper understanding of the points spoken therein, and to achieve a frank comparison of the ideals written within them.
This paper will not align itself behind a certain view in an attempt to twist the reader’s arm into believing one side is better than the other. It will provide no opinion whatsoever as to which side you should belong to; it will leave the qualities and failings of the argument itself alone.
Here, in this research paper, I will try to find a decent reply for the principal questions and provide an appropriate supporting research for my argumentation, which I will take from the reading of this class.
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.