Stakeholder theory analysis - Book Report/Review Example

Comments (0) Cite this document
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…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER93.4% of users find it useful
Stakeholder theory analysis
Read TextPreview

Extract of sample "Stakeholder theory analysis"

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. Read More
Cite this document
  • APA
  • MLA
(“Stakeholder theory analysis Book Report/Review Example | Topics and Well Written Essays - 500 words”, n.d.)
Stakeholder theory analysis Book Report/Review Example | Topics and Well Written Essays - 500 words. Retrieved from
(Stakeholder Theory Analysis Book Report/Review Example | Topics and Well Written Essays - 500 Words)
Stakeholder Theory Analysis Book Report/Review Example | Topics and Well Written Essays - 500 Words.
“Stakeholder Theory Analysis Book Report/Review Example | Topics and Well Written Essays - 500 Words”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Stakeholder theory analysis

Stakeholder Theory

...Shareholders vs. Stakeholders theory The talk of stakeholders is rampant these days with more and more firms drifting themselves towards corporate social responsibility. Managers in various firms have been forced to change their decision-making style and they've now begun to realize that their actions should not just revolve around the aims of the owners of the firms they work for, which usually is maximizing profits. Stakeholder theory is most closely associated with R. Edward Freeman, Olsson Professor of Applied Ethics at the University of Virginia's Darden School. The theory holds that managers ought to serve the interests of all those...
2 Pages(500 words)Essay

Stakeholder theory and Strategy

...succinctly presented how the use of stakeholder analysis can advance corporation efficiency and facilitate a corporation’s effectual policy/decision-making. For the investigation’s methodology, it makes use of the qualitative research employing the interpretivist/inductive stance mode of inquiry. Stakeholder Theory The theory sees the organization as a pool of internal and external groups referred to as stakeholders. A significant premise of stakeholder theory is the nature of the relationships between the firm, usually represented by the organisation’s top managers, and...
24 Pages(6000 words)Essay

Freeman Stakeholder Theory

...Freeman’s Stakeholder Theory According to the “Doctrine of Fair Contracts”, Corporations ought to be governed in accordance with six principles: (i)the principle of entry and exit (ii) principle of governance (iii) principle of externalities (iv) principle of contracting costs (v) the agency principle and (vi) the principle of limited immorality.( In arriving at this Doctrine, Freeman’s theory holds that both stockholders and stakeholders have a right to demand certain actions from management because they all have a vested stake in the corporation. Owners have a financial stake in the corporation and expect returns on their investment. Employees have...
2 Pages(500 words)Essay

Stakeholder mapping Stakeholder analysis

...whose support proves critical for the implementation of the project. These stakeholders could be from either of the above two categories having significant influence over the functioning of the company. Stakeholder analysis tries to figures out all stakeholders and then categories them in these categories. Subsequently, a balanced approach in adopted by the company; which often happens to be a compromise between the goals of the organisation and the stakeholder groups. This is termed as2 ‘Behavioural theory of the Firm’. Stakeholder analysis is generally carried out in three simple steps; First step:...
10 Pages(2500 words)Essay

New Public Management, Stakeholder Theory 1, Stakeholder Theory 2

...because it gave a new dimension to the concept of people’s service and better outcomes in form of organizational operations with low inventory, low overheads and higher throughputs(HOOD 1991). N.P.M is often termed as a tool and weapon which will enable better outcome in any kind of organization with customers at back end., however the main focus is that of governmental institute with focus on reforming the pillar of bureaucracy in a holistic way by making it more effective and bringing the true value out of the bureaucratic entity by ensuring that bureaucracy remains absolutely neutral of any political inclination or affliation. Stakeholderstheory: Like the concept of N.P.M,...
4 Pages(1000 words)Essay

Stakeholder Analysis

... Stakeholder Analysis Who are the stakeholders? The issue under question concerns use of animals for experiment and the ensuing ethical concerns. It is important to note that this debate involve different stakeholders with divergent arguments which narrow down to proponents and opponents. The core stakeholders are animal rights activists, scientists, government agencies, religious groups and general public. What do proponents of the argument gain by “winning” this argument? The argument under question emphasizes the need to abolish use of animals for scientific experiments. The proponents of this argument constitute the animal rights activists, religious leaders and a section of the public (Cohen and Tom 69). This faction... of the...
2 Pages(500 words)Essay

Stakeholder Analysis

... should ensure effective communication is promoted. References Fraser, C., & Zarkada-Fraser, A. (2009). Investigating the effectiveness of managers through an analysis of stakeholder perceptions. Journal of Management Development, 762-783. Goodpaster, K. (2010). Business Ethics and Stakeholder Analysis. Business Ethics Quarterly, 53-53. Littau, P., Jujagiri, N. J., & Adlbrecht, G. (2010). 25 years of stakeholder theory in project management literature (1984–2009). Project Management Journal, 41(4), 17-29. Varvasovszky, Z. 2000. A stakeholder analysis. Health Policy and Planning, 338-345.... Stakeholder analysis By Event stakeholders The following are the concert...
3 Pages(750 words)Outline

Stakeholder analysis

...Stakeholder Analysis WAL-MARTS STAKEHOLDERS Table Wal-Marts Stakeholders Number Stakeholders Stake Attributes Responsibilities 1 Shareholders -Company owner -The right to vote -Power -Legitimacy -Urgency -Economic -Ethical -Legal 2 C.E.O -Interest -Right -Power -Legitimacy -Economic -Ethical 3 Employees -Right -Interest -Power -Legitimacy -Economic -Legal 4 Government Interest -Power Legitimacy -Legal -Ethical 5 Customer -Interest -Right -Power -Legitimacy -Philanthropic -Legal Company stakeholders refer to persons who hold top positions in the company. They are part of the team, which makes policies and decisions that are supposed to...
5 Pages(1250 words)Essay

Stakeholder analysis

...Oxford Hills Healthy Moms Project A). Like all organizations, Oxford Hills Moms Project is has the following kinds of stakeholders: 1. Member – these are the constituents of the group. The people who are served the many operations of the organization. 2. Management- these are the official representatives that make the decisions for the organization. They are accountable for the decisions that the group makes. 3. Other stakeholders include the people the organization does business with, these include the kinds of business they reach out to in case they are running a project that requires their help or expertise. 4. Government –the organizations works with the local government of North Carolina. The...
2 Pages(500 words)Essay

Stakeholder Analysis

...Stakeholder Analysis Sur 21 September Stakeholder Analysis Stakeholders are the people, organizations and groups who have aneffect on the vision and mission of a firm which in this particular case study is the Boston University minor league baseball Franchise. The stakeholders’ actions and attitudes in the Boston University baseball franchise have a direct influence on the overall success rate of the franchise. Stakeholders are also impacted by the firms’ strategic outcomes and can also have a claim on the performance of the firm (Ian, 2014). However, not all the stakeholders have a similar amount of...
3 Pages(750 words)Assignment
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Book Report/Review on topic Stakeholder theory analysis for FREE!

Contact Us