How would you feel if you owned part of a company, but could not help make any decisions on the future of the company? Those who own majority of the company decide to hire mangers to make important decisions on your company. This is a general example on how shareholders run their company. Now wouldn 't you rather help make decision, or be able to factor in ideas from the employees and community that has helped the business grow? If so, you might want to consider the stakeholders theory. Different stakeholders can hold varying amounts of influence and interest, within the organization. For example, consider a factory worker. An individual worker has large interests in the company, in terms of working conditions, salary, and benefits. …show more content…
Internal stakeholders are described as “the managers and employees of a company.” Connected stakeholders are those that are beyond the immediate boundaries of the firm, while external stakeholders are those who are outside the firm. Some would say it is rather difficult to argue the stakeholders theory because there is not as much information on the subject as there is shareholders theory. They would argue that shareholders own most corporations; and presently, corporations owned by stakeholders would be unsuccessful in the long run. There has been some debate on the legitimacy of the concept of the stakeholder, according to Friedman and Miles. “The stakeholder concept has not gone unchallenged. Many have reiterated the alternative stakeholder positions. Others have challenged implications of the stakeholder concept for certain groups” (Friedman and Miles 118). Friedman and Miles go on to argue how stakeholders can weaken an organization, and even alter its long-term characteristics. Assume that the stakeholder concept is infallible and consider the example of the factory worker. The company is publicly owned and is located in a more economically developed country (MEDC), where it will have a weaker influence from the government when compared to government owned companies. Labor unions associated with the company will likely be strong and workers will have a higher influence than they would in a less economically developed country (LEDC) where unions are
A stakeholder is anyone with an interest in a business. Stakeholders are individuals, groups or organisations that are affected by the activity of the business. There are two different types of stakeholders; internal and external. Internal stakeholders are groups within the business e.g owner/workers and employees. External stakeholders are local and national communities and governments, these are groups outside of the business.
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
Stakeholders are those individuals who may be affected or have an effect in an organizations depending on the decisions that may have been made. One of the most important reason for identifying and understanding shareholders is that it allows the organization to recruit them as part of the effort in anything there are involved in. participatory effort and representation of as many stakeholders as possible ranging from internal to external has possible advantage. Internal stakeholder is a groups within an organization who work directly within the organization, such as employees, owners, and investors. In the other case external stakeholders
John Kew and John Stredwick mention that Jonhson et all 2011 defines a stakeholder as “those individuals or groups who depend on the organisation to fulfil their own goals and on who in turn the organisation depends.”
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.
The second key stakeholder is the employees. An employer is an individual who works either full-time or part-time under a contract of employment for a business and they are getting paid. The main reason why employees are one of the components for the stakeholder of a company because the business/company provides the employee with a livelihood. If an employer works really well, they are more likely to get promotions and move up from different roles, for example – a sales assistant to a supervisor. If an employee doesn’t get treated right due to issues such as discrimination, they are more likely to not be satisfied with their job and they will not work towards their best potential. They are also more likely to quit. If an employee quits, this will cost the business/organisation more money to find someone else to replace their old employee. The advantages of employees are that this will increase the country’s employment percentage because more people are joining the labour force; this will provide the employees a better standard of living because they are earning more and this will increase the level of staff motivation because this will motivate them to do their best and they can receive promotions and
Stakeholders are groups or individuals that can affect or can be affected by a policy, such as Medicaid. There are many stakeholders that have the ability to affect change when it comes to the elderly and Medicaid. There are also many Stakeholders that are affected by Medicaid as a policy.
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.
A stakeholder is someone who someone who benefits or is burdened by a corporation, or someone who the corporation benefits or is burdened by. (Steiner). Stakeholders are represented by two main groups; primary and secondary
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.
Stakeholders are anyone who has a interest or influences the business in anyway. There are two
“Stakeholders (or interest groups) are tangible, visible and approachable groups or institutions which have a direct influence on the functioning of an organisation.”
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
A company’s stakeholders are all those who are influenced by and can influence a company’s decisions and action, both locally and globally. Business stakeholders include(but are not limited to) employees, suppliers, customer, community organizations, subsidiaries and affiliates, joint venture partners, local neighborhoods, investors, shareholders(or a sole owner in case it is sole
The (word) stakeholder means any person with an interest in business, someone who can contribute to the company grows and success or who benefits from its success. The various stakeholders in business have differing role and their level of involvement in the enterprise varies