The Role Of Internal And External Stakeholder Interests

Firstly the organization needs to identify and analyze the interests of various stakeholders. Ones the identified and analyzed an understanding of their interest is taken into consideration. The interest are not always meant to hinder the prosperity of the organizations others are meant to make business run smoothly without major problems hence all the interest considered and filtered. Stakeholders are analysed and then the most affected will be decided through a forum of dialogue on how to go about the problem can be discussed. Another way hat stakeholders can be brought at board to be part of solution is through use of brainstorming session. In this case all the involved stakeholders are tasked to come up with as many possible solution as their can for a particular problem without judging on their feasibility. Once on paper, the ideas now needs to be scrutinized, assessed, combined or expanded until they become workable solutions to their problem. Organizations can as well employ a strategy in solving particular problems involving a stakeholder. In this case due to specificity of the problem the stakeholders can look for the possible way to address them including weighting the pros and cons of various available alternatives and choosing the most favorable one which will serve them the

4. Who are the stakeholders in this situation and what, if any, obligations do they have?

The first step in covering stakeholder engagement is to first determine who a stakeholder is. A common misconception is that

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).

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.

For this task I have been asked to discuss the stakeholder’s aims and objectives of my two businesses. It is important for stakeholders to have an influence as they can offer ideas and anything the company is doing is in their interest.

The stakeholders are the shareholders, managers, and employees. The current situation has caused a dilemma that affects all stakeholders equally. When the business is at risk, everyone involved should be concerned about the future of the organization. However, the responsibility falls to the senior leaders of the organization to solve the current issues. However, holding 80% of the company’s stocks is concerned not only about the organizations current issues but also with the value of his investment, as he gets closer to retirement. This creates an ethical dilemma due to his personal finances and retirement being directly affected by the company’s performance. In addition, the CEO believes that the status of the organization is not as bad as some of the senior leadership team would say. The shareholders interest is purely profit. The impact of how Huffman Trucking runs the business and implements change has a direct reflection on the company’s image.

As a multinational corporation, the implication of the scandal determines the fate of numerous stakeholders both internal and external. Internal stakeholders comprise of the board, managers and employees while external stakeholders subsume shareholders, customers and suppliers. The economic, political and social impacts of the dishonest practices would shape the fate of Volkswagen and affect the future prospects of the automotive industry. Common shareholders whilst not involved in the day to day running of the business placed faith and belief in the firm by providing capital had suffered severe economic loss as share prices (get something for stat). Despite the callous deception in advertising the defeat device displayed no signs of disturbing vehicle performance, however, customers of Volkswagen and its subsidiary vehicles suffer from lower resale value. In addition, even though the scandal was global, European consumers were the most affected with diesel cars accounting for 41% of all European cars (Fontaras, 2016). This high percentage in respect to other nations is a result of incentives provided by the European Union for the purchase of diesel vehicles such as subsidies towards the production process resulting in lower premiums compared to petrol counterparts (Vidal, 2015) In additional with sales falling suppliers of Volkswagen would likely lose future contracts or have current contracts downgraded as less parts are required. Thus, this loss of future

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

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).

* The interest each stakeholder has in imposing its expectations on the organisation’s purposes and strategic choices

A corporation needs to have a strategic plan in place in order for them to be able to implement a downsizing. There are many pros and cons to downsizing and it has a ripple effect on everyone in the corporation. Depending on the planning of the downsizing, one of the big issues to decide on is how to choose who will be terminated. For example, do you go by seniority, a percentage from all departments, an entire department, or by job level or position? These are major options that need to be addressed before anything happens. Most corporations today exist less for the well being of employees than they

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

Downsizing has become a commonplace strategy for organizations to adopt in an effort to cut costs, eliminate redundancies, and streamline organizational systems. Over the last 15 years, many organizations have engaged in downsizing more than once. Most companies have learned from the mistakes of the past, but some companies are still trying to use the same tactics today that were used in the mid 1980s, that leave employees reeling.

Anglo American hired Cynthia Carroll as chief executive officer in hopes that she would improve the overall performance of the company. Failing to meet their expectations would almost guarantee her time at the company would be short lived. As CEO she must juggle the interests of her stakeholders and make decisions that benefit the company. It can prove to be a difficult task as certain stakeholders hold more power and have more influence when it comes to making these decisions. In this paper I will be using stakeholder theory to discuss how Anglo American’s stakeholders influence Carroll’s decision. Carroll is well aware of the dangers her employees face, however she must decide whether it is in her best interest to increase safety or not. While increasing safety measures may make the company look better, it will come at great costs. Although Cynthia Carroll is facing some opposition from it’s the South African government and its employees, when taking in the interests of all the company’s stakeholders it is clear that she must keep the mines up and running without taking more safety precautions.