Company Strategies That Encourage Stakeholder Respect and Fair Treatment - Research Paper Example

Social Performance Introduction Social performance can be regarded as a vital aspect for any modern day organization in the 21st century. However, its significance increases manifold in the context of a community welfare organization such as The Menkiti Group. Based on the business performance of the organization and its continuous effort in the US real estate industry, this report intends to briefly discuss about the different primary and secondary stakeholder groups, their roles and relationships within the internal business environment of Menkiti. With this concern, the discussion of the paper further includes a few noteworthy recommendations for the real estate organization, i.e. Menkiti, which can be significantly beneficial to increase the number of its stakeholders within the community. In addition, the paper also suggests an effective business plan for Menkiti which can enable the organization to encourage its stakeholders in forming better coalition. This can further assist the organization to achieve its respective goals in the real estate market within the stipulated time-frame. Finally, the paper focuses on highlighting the major challenges which could create a significant impact on the overall business plan for Menkiti when aiming at encouraging its stakeholders substantially and thereby enhancing its social performances. Company description and its various stakeholder groups Menkiti is registered as a mid-sized real estate services providing organization which is highly committed towards improving and satisfying the needs for a better lifestyle within the semi-urban communities of America. The organization was founded in the year 2004 and is certified as one of the Local, Small Disadvantaged Business Enterprises (LSDB) in Brookland. Being publicly registered and committed towards community welfare through real estate services, the business strategies employed by Menkiti needs to be adequately sustainable and transparent depicting a higher degree of efficiency in its social performances. Notably, the sole aim of the organization is to facilitate strategic development through effective managerial processes in order to perform transactions of both residential as well as commercial properties within the US [1] (The Menkiti Group, 2012). Primary and secondary stakeholder groups of Menkiti & their roles and relationship The primary stakeholder groups of an organization are those groups or individuals who tend to be directly engaged with the financial transactions performed by the organization (Polonsky, 2005). Correspondingly, the primary stakeholder groups of Menkiti include the customers, the employees, the suppliers as well as the creditors and the stockholders of the organization involving the concerned governmental bodies of the US. In the similar context, it can be mentioned that even though the secondary stakeholder group do not involve directly with the organizational operations, the participants constituting this group tends to create significant effects on the overall organizational performances (Polonsky, 2005). In relation to Menkiti, the group of secondary stakeholders includes communities, support business groups as well as the range of general public residing within the District of Columbia [2] (The Menkiti Group, 2012). In relation to the primary stakeholder groups of the organization, Menkiti involves both American and Non-American groups of customers who are influenced with the services provided by the organization. With due consideration to the various community-based programs, Menkiti has been able to develop an effective relationship with the community members by rendering various welfare activities. Moreover, the organization has also conducted different community based events with different sponsored organizations to encourage stakeholder groups (The Menkiti Group, 2012). Recommending Ways to Influence Stakeholders According to the present competitive market scenario, in real estate and housing industry, organizations need to strive towards employing competitive strategies. Focusing upon its community based activities Menkiti has been rendering adequate support for its stakeholders. For instance, the organization extensively involves into development activities through building accommodation facilities for low-income or homeless people within the age group 16-24 years by assisting them to obtain adequate educational support. Moreover, the organization also tends to facilitate high school preparatory events and to provide sports tutoring programs for the young populaces. The organization also participates in the community celebration festivals which further facilitate it to enhance stakeholder relationship [2] (The Menkiti Group, 2012). It is in this context that an effective and quality based leadership capability usually sets the image of the organization deciphering the fundamentals of how it treats its stakeholders. In relation to Menkiti, it shall be advisable that the organization should be more focused on enhancing the power of its leaders while performing the determined business operations. This will further facilitate to set the appropriate path through building effective relationship with the stakeholders surrounding the District of Columbia. Moreover, the organization should also focus on developing an effective workforce which can fairly represent the organizational vision when marketing its products and/or services to its ultimate consumers (Basu, 2013). In addition, providing housing facilities for the homeless or lower income group populaces, providing healthcare facilities as well as liberating educational facilities could also be beneficial for the organization to build a long-term relationship with its stakeholders. Better consideration towards the effectiveness of its corporate governance strategies can also facilitate Menkiti to encourage its stakeholders and their interests towards the organization’s benefits. The strategy relating to corporate governance of an organization further engages sequential planning which assures to build a strong and long-term relationship with its customers as well as the vendors or suppliers. Therefore, corporate governance can also be regarded as an important factor for Menkiti in order to strengthen its stakeholder groups (Basu, 2013). In this context, it is highly important for Menkiti to disclose its financial performances regularly and notifying its community concerning other relevant and important information of the organization. This strategy within the business process can generate interests of the investors and can also prove to be effective for Menkiti to capture new customer segments across various districts within the US. Planning for Encouraging Stakeholders to Form Effective Coalition Building an effective coalition with the community or market where the organization practices its business operations can be considered as one of the imperative strategies for Menkiti to achieve long-term sustainability. In order to make coalition successful within the community, the organization should also need to focus on communicating its vision as well as its mission constituted within its company’s structure so as to strengthen its membership with the identified stakeholder groups. Moreover, practicing effective leadership is also imperative for Menkiti to encourage its stakeholders. In addition, adequate staffing is also important for the organization to build an effective coalition within its stakeholders from a long-run perspective (U.S. Department of Housing and Urban Development, 2009). With this concern, the business strategies of Menkiti should execute different activities concerning Corporate Social Responsibility (CSR) which shall enable the organization to build a community-wide coalition within the District of Columbia. With due consideration to the environmental concerns, it has been observed that the organization further needs to promote environmentally sensitive housing facilities more extensively. With this concern, the organization should also need to avoid the uses of harmful chemicals and materials which may affect on the environment during the construction process along with generating adequate awareness concerning this particular issue amid the stakeholders (Walker, Shelley & Bourne, 2008). In this regards, organizing campaigns, frequent meetings with its primary stakeholders and likewise obtaining the viewpoints of the community members can assist Menkiti in building effective coalition with its stakeholders and encouraging greater participation from them. Conclusion With reference to the above discussion it can be apparently observed that organizations, irrespective of their size and industrial competencies need to preserve effective relationship with the stakeholders with the intention to obtain long-run sustainability. However, when attempting to build effective coalition with its stakeholders, organizations can face various challenges which are also observable in relation to the business operations of Menkiti. For instance, the alterations in the socio-economic dimensions with a society in terms of income level, migration trends as well as changing consumer preferences are few of the vital challenges which often tend to obstruct the development of an effective relationship with the stakeholders. Additionally, rigidness of the governmental norms as well as cultural and social conflicts also tends to cause challenges when attempting to encourage stakeholders. Hence, it is essential for Menkiti to take into account these various factors in order to ensure better responsiveness from the stakeholders’ end. References [1] The Menkiti Group. (2012). The Menkiti Group. Retrieved from http://www.menkitigroup.com/our-story/ [2] The Menkiti Group. (2012). Menkiti Group Development. Retrieved from http://menkitigroup.squarespace.com/development2/ Basu, C. (2013). Company Strategies That Encourage Stakeholder Respect & Fair Treatment. Retrieved from http://smallbusiness.chron.com/company-strategies-encourage-stakeholder-respect-fair-treatment-34937.html Polonsky, M. J. (2005). Stakeholder Thinking in Marketing. United Kingdom: Emerald Group Publishing Limited. U.S. Department of Housing and Urban Development. (2009). Building Effective Coalition. Retrieved from https://www.onecpd.info/resources/documents/buildingeffectivecoalitions.pdf Walker, D., Shelley, A. & Bourne, L. (2008). Influence, Stakeholder Mapping and Visualisation. 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