Stakeholder theory analysis - Book Report/Review Example

full [7 February A Critical Analysis of the Stakeholders Theory, Using INB Case Study. Stakeholders comprise of groups of individuals who have an interest in certain activities of the business. The interest arises due to the impact that such activities can have on these groups. In most cases, shareholders will try to oppose any move in the business that will affect them negatively. Primarily, before the company undertakes a particular course of decision-making, ethical issues and scientific approach to the theory form the basis of the decision.

It is through proper assessment of the groups that the business identifies conflict of interests and take the right measures to address them. As such, this analysis involves a critical evaluation of INB case through the application of stakeholder’s theory. Firstly, INB is an investment that aims at making profit for its shareholders. However, it is not always about profit when different groups say they are not getting fair treatment from the organization. Occasionally, “…the company should take into consideration the needs, interests and influences of peoples and groups” (Mainardes et al. 235). It implies that INB should consider how the people in these two neighborhoods will suffer from the economic move.

The rationale and ethics which aim at building a strong relationship between the bank and its surrounding community calls for the need to table the interests of the various groups. It is important if the INB can close only one branch, North Madison, and leave Rockdale operational. Secondly, this bank can use normative approach in the theory such that key stakeholders get a platform to express their grievances. The groups include residents of the neighborhood, the city council, employees, and the government.

The business depends on these stakeholders. It should, as a result, strive to ensure good relations among all these groups so as to provide an environment with balanced forces (Mainardes et al. 240). Also “…stakeholders have a moral right to the company” (Mainardes et al. 242). If the business wants to enjoy a productive environment, then INB is supposed to weigh the profit motive or the mutual benefit and service obligation to the society. Adoption of technology in the business operations leads to increased speed of service delivery.

For this reason, residents of North Madison branch should not be against the move of building the ATMs. As far as the business tries to comply with media, publics, employees, and government interests, those parties also need to support the organization for mutual benefits. Subjecting the company to high chances of loss in the name of safeguarding group interests can have an adverse effect on the economy. The organization will risk operating the Rockdale branch. INB, on the other hand, expects residents of North Madison to welcome technology as it is the pillar of success.

The move aims at image restoration strategy so that the initial record of being in harmony with the authorities is clear. In summary, INB is operating in a sensitive situation. As seen above, shareholders strategy involves more listening and doing things to favor interests of groups. Mostly, the business foregoes the profit making motive from the scientific management technique. However, the compliance aims at controlling the forces that the stakeholders have. It is clear that the media in the above case is a threat.

It can destroy the image of the organization. The company introduces measures to portray social responsibility. Different groups expect fair treatment from the organization. Work Cited.Mainardes, Emerson W, Helena Alves, and Mario Raposo. "Stakeholder Theory: Issues to Resolve." Management Decision. 49.2 (2011): 226-252. Print.