Stakeholder Salience Case Study

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).

Daft (2012) defines stakeholders as “any group within or outside the organization that has a stake in the organizations performance.” Stakeholders within the organization include the owners, managers and employees while external stakeholders includes the organizations customers, suppliers, community, workers unions, creditors as well as the government. Due the variety as well as different nature of the stakeholders, each stakeholder has a different expectation from the organization as concerns their stake. It is from this characteristic and expectation that each stakeholder will be affected differently by actions and decisions as well as policies and practices implemented by the business from those of another stakeholder (Carroll & Buchholtz, 2014). This also means that the different stakeholders will act or make decisions that affect the business in a way best situated for them. Carroll & Buchholtz (2014) discuss the relationship between the business and stakeholders as one that has a two-way interaction; businesses will affect stakeholders as well as stakeholders affect the business, that is an interchange of influence. The complexity of the stakeholder-business relationship calls for

The impact and the extent of the impact that Stakeholders and the organization have over each other depends on the nature of organization and the relationship between the stakeholder and organization. Every stakeholder has its distinct affect on organization or business depending on its nature, functions and relationship with organizations. For example, government sets rates of pay, taxes, level of national insurance and introduce new legislations. Shareholders elect board of directors and vote on director’s pay levels in annual meeting. Trade unions represent its members and negotiate on behalf of its members for their rights.

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.

Every stakeholder have their own process and roles, it can affects or can be affects by organization’s action. All stakeholders have own satisfied and unsatisfied (appendix 2).

Stakeholder's Analysis is an important activity through which the Project Manager will understand the actual effect of the stakeholders, an appraisal of their profits, and the courses in which these maneuvers influence

25. A number of European countries require public companies to include employee members on their boards of directors, so: A. The employees are available to answer questions. B. Management does not have to attend the meetings. C. That their interests will be explicitly represented. D. They have more power than any other stakeholder. 26. Stakeholder groups can include: A. Stockholders. B. The media. C. Environmental activists. D. All of the above. 27. Which one of the following is considered to be a nonmarket stakeholder of business? A. Customers. B. Media. C. Creditors. D. Stockholders. 28. Which of the following is not considered to be a nonmarket stakeholder? A. Government agencies. B. The natural environment. C. Activist groups. D. Non-governmental organizations. 29. The phenomenon of a person or group holding multiple stakeholder duties is referred to as: A. Role sets. B. Primary Stakeholder(s). C. Ownership Theory. D. None of the above. 30. A stakeholder analysis: A. Creates equality among all stakeholder interests. B. Allows managers to examine two primary questions. C. Involves understanding the nature of stakeholder interests. D. All of the above. 31. The four types of stakeholders' power recognized by most experts are: A. Voting,

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

Stakeholders are more salient when they possess power, legitimacy and urgency” (p. 565). Since the previous paragraph discussed power in depth when concerned with a stakeholder’s interest in globalization, let’s transition to the variances in legitimacy and urgency.

Each organisation has a unique external and internal environment that has unique impacts on the organisation. A stakeholder’s analysis categorises that environment determining whether an organisation or a person has any low or high interest and power over the business. Based on The Asda Wal-Mart case study, stakeholders are consecutive:

The stakeholder approach concentrates on surrounding environment of a business, however, there are several drawbacks in the concept of stakeholder approach. The very first negative attribute is that an organization has obligations and duties to all stakeholders (). However, it is not clear that whether every stakeholder will be benefited equally and fairly or not (Mainardes et al. 2011). That means, although the concept of stakeholder approach is ideal, however, it is not easy for an organization to satisfy all stakeholders at the same time, or at least, maintain a good relationship with each stakeholder. The problem is, sometimes, when an organization tries to gain benefit from one stakeholder, it may, at some stages, unintentionally damage other stakeholders’ relationships. The balance scales between stakeholders are not an easy task to maintain.

The goals provided above collectively represent the overall aim of the system. In order to further understand this aim and to thus begin to design and develop the system it is necessary to fully consider the stakeholders who are effected by, and/or who have an effect on the system. The next section provides an illustrative breakdown of the stakeholders and their proximity to/from the system. This then forms the basis of the stakeholder roles provided in section 2.2.

Carroll, A. B., & Buchholtz, A. K. (2009). Business and Society: Ethics and Stakeholder Mangement. South-Western CENGAGE Learning.

There has been a shift in managerial attitudes toward, and consideration for, social and environmental issues in recent decades (Parnell, Scott, & Angelopoulos, 2013). While mangers have traditionally been obligated to work for the good of the shareholder, widespread adoption of the stakeholder theory demands that managers seriously consider the impacts of the firm’s decisions on all affected outside parties, or stakeholders (Boatright, 1994; Parnell et al., 2013). However, purchasing and supply chain management (PSCM) in practice seems to remain oriented toward profit maximization, though interest in social responsibility is growing (Ferrell, Rogers, Ferrell, & Sawayda, 2013). The managerial shift toward stakeholder relationship management has been evident, yet the extent to which PSCM departments have embraced stakeholder theory is less obvious.

In the last decades of the 20th century, the word "stakeholder" has become more commonly used to mean a person or organization that has a legitimate interest in a project or entity. In discussing the decision-making process for institutions—including large business corporations, government agencies, and non-profit organizations—the concept has been broadened to include everyone