Organizational stakeholders - Essay Example

Discuss the concept of organizational stakeholders. Give some examples of organizational stakeholders and why it is important to understand the role of stakeholders within an organizationNameUniversity The concept of organizational stakeholders meant that there are several interest groups that have stake in an organization. These interest groups are the individuals and institutions that will be affected by the act, operation and existence of an organization. In short, they have the interest to gain or lose if an organization will succeed or fail (www.

boxesandarrows.com, 2004). These organizational stakeholders can be categorized as internal and external. The internal stakeholders are those within the organization which includes its stockholders, officers and employees. The external are those outside the organization but still has interest in the organization such as the regulatory agencies and the general public. It is important to understand the role of stakeholders so that the company can act responsibly to its various stakeholders. This understanding of the interest of the various stakeholders in the company can serve as a guide for the company as it craft its strategy and executes its operations making sure that these strategies and corporate acts are consistent with the interest of the various stakeholders of the company.

The internal stakeholders have a direct interest in the success of the company but it must be balanced with the interest of the external stakeholders. Minding the interest of internal stakeholders alone may make the company short sighted in its pursuit of satisfying the interest of profit of its internal stakeholders. It should be balanced with the interest of the external shareholders to ensure the long term going concern of the company as it balances its interest for profit with social responsibility.

Reference "Understanding Organizational Stakeholders for Design Success." Boxes and Arrows Understanding Organizational Stakeholders for Design Success Comments. 6 May 2004. Web. 8 Mar. 2015. .