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Fair And Equitable Treatment Of Organizational Stakeholders - Essay Example

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In considering whether organisations that treat their stakeholders in a fair and equitable manner and strive to meet their reasonable expectations are likely to experience high levels of performance this essay firstly identifies the various stakeholders and reviews what their expectations might be. …
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Fair And Equitable Treatment Of Organizational Stakeholders
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Download file to see previous pages It continues by indentifying various performance criteria including those which focus on financial performance and those associated with the concept of a ‘triple bottom line’. To assist in reaching conclusions about the merits of competing views, the paper analyses the various drivers including the competitive environment, corporate governance, agency theory and sustainability. An approach that was prompted by the views of D’Aveni,(1994) that fair and equitable stakeholder engagement has always played an important role within corporate governance and is important for the success of an organisation especially within highly competitive markets.

Stakeholders
In any organization there are a number of stakeholder groups as represented by the traditional form of the stakeholder model (Figure 1). Each of these groups may have different views about how the organisation should behave (Palmer and Hartley, 2011, p178); employees, for example, may feel unfairly treated if they are not rewarded adequately or are not given the right working conditions. Supply chain associates expect organizations to honour their contracts whist government is increasingly expecting business organizations to take over many responsibilities from the public sector such as in the payment of sickness, maternity and other benefits (Palmer and Hartley, 2011, p182).
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They expect the firm’s management to meet their expectations and take care of their needs, and allow them to take part in various decision-making activities that can influence the interests that are at risk (Ulmer, 2001). Consumers buy products that bring in revenues for the corporation and, which can be used for developing new items and services as well as in adding quality to existing products (Cohen and Prusak, 2001). Thus, the consumers possess a legal and reasonable interest in the quality of the products and services being provided by a firm and in the nature of the information provided such as the potential harmful effects of products like alcohol or cigarettes. They expect the firm to adopt a more consumer friendly and quality oriented approach on the basis that it will encourage them to buy more goods and services which in turn helps to improve the performance of the organisation. Suppliers are important to any business as they provide raw materials and other inputs which the firm requires to produce its goods and/or services. Therefore, the firms are clients of, and hence in a relationship with the supplier. The latter has its money at risk, for example it may be invested in raw materials (Cohen and Prusak, 2001). This is of special importance to minor suppliers which are dependent on large corporations, especially if they are their chief or even only client. In such cases of high dependencies, these small suppliers tend to focus on improving the quality of products delivered to the large firms, which further increases the level of dependency on their clients. Here the suppliers seek to bargain for a more close relationship with the client-firms, and not be ...Download file to see next pagesRead More
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