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.

Who Are Stakeholders Stakeholder Theory - Essay Example

Comments (0)
Stakeholders are individuals, groups or societies who depend on the organisation to fulfil their need and of which the organisation depends on to survive (Johnson & Scholes 2007). However, the notion of stakeholders was viewed differently by Pesqueux and Damak-Ayadi (2005).
Download full paper

Extract of sample
Who Are Stakeholders Stakeholder Theory

Download file to see previous pages... "the social community (state authorities;..and civil society)." From this definition we see that shareholders are both internal and external members of the organisation community. Milton Friedman's (1912) stipulated that the only social responsibility of corporations is to provide a profit for its owners stands in direct contrast to those who claim that a corporation's responsibilities extend to non-stockholder interests as well.

Such a broad conception would include suppliers, customers, stockholders, employees, the media, political action groups, communities, and governments. A more narrow view of stakeholder would include employees, suppliers, customers, financial institutions, and local communities where the corporation does its business. But in either case, the claims on corporate conscience are considerably greater than the imperatives of maximizing financial return to stockholders.
Today, a handful of researchers have gone as far as arguing that, the reasons for corporate restructuring or change are either competitive pressures, changing outside environments which in most cases is made up of mostly the stakeholders (Anderson et al. 2001). In the changing company environment, researchers have even gone as commending stakeholder approach as a key factor of organisational survival and success. Therefore, our caution to organisation management is that, they should skillfully consider how to treat particular groups of stakeholders and how to communicate with them responsively, being aware of the consequences of an omission or mistreatment.

Having said this, this paper seeks to identify and analyse the issue of power and interests of stakeholder groups for the University of Central Lancashire (UCLAN). In the section that follows, using the stakeholder theory and framework I will analyse the interest and power of the various stakeholders on the activities of the University of Central Lancashire.

Stakeholder Theory
Friedman (1963) as sited in Anderson et al. (2005) argues that a corporation is socially responsible only to its shareholders. In this regard, other corporate constituencies (stakeholders) can easily be overlooked. However, stakeholder theory strongly suggests that overlooking these other stakeholders is unwise and ethically unjustified. To this extent, stakeholder theory participates in a broader debate about business and ethics (Algas et al. 2006, Donaldson & Preston 1995)
Descriptively, some research on stakeholder theory assumes that managers who wish to maximize their firm's potential will take broader stakeholder interests into account. This gives rise to a number of studies on how managers, firms, and stakeholders do in fact interact (Friedman 1970, Steiner & Steiner 1997).Stakeholder theory has been articulated in a number of ways, but in each of these ways stakeholders represent a broader constituency for corporate responsibility than stockholders (Friedman 1970, Steiner & Steiner 1997).
In sharp contrast, according to stakeholder theory, managers should make decisions so as to take ...Download file to see next pagesRead More
Comments (0)
Click to create a comment
Comparing and contrasting agency theory and stakeholder theory
The theory identifies the main criteria to be taken into consideration in designing incentive contracts or incentive compensation arrangements. An agency relationship is established when one party: the principal hires another party: the agent to carry out a particular service, thereby delegating decision-making authority to the agent.
16 Pages(4000 words)Essay
The relationship between stakeholders and business organizations is mutually beneficial as organizations have realized that stakeholder management is an important factor in improving business performance. The stakeholder model of management theory highlights the advantages of a partnership between management and stakeholders encouraging a real and dynamic process of dialogue.
10 Pages(2500 words)Essay
Stakeholder Theory
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 who have a "stake" in the firm.
2 Pages(500 words)Essay
Stakeholders Theory
The main elements of the shareholders and stakeholders theories have been juxtaposed under the following heads: Director's fiduciary duties: The Shareholder theory propagates interests of the shareholders based on the argument that they are the owners of the company thus their property rights ought to be protected.Therefore, the directors must run the company in the interest of the shareholders.
3 Pages(750 words)Case Study
Stakeholder theory and Strategy
The paper is structured as follows – first, stakeholder theory is introduced along with the presentation of the stakeholder model of the firm,
24 Pages(6000 words)Essay
group or individual who can effect, or is affected by, the achievement of an organisation’s objectives.” Clarkson (1995 :5) defined stakeholders more specifically as those that “bear some form of risk as a result of having invested some form of capital, human or financial,
5 Pages(1250 words)Essay
New Public Management, Stakeholder Theory 1, Stakeholder Theory 2
A term that came into vogue in the later part of twentieth century is aimed at bringing about further improvement in the manner in which the public administrations are being carried out. The desire and demand has been driven by improving the overall
4 Pages(1000 words)Essay
How stakeholder theory linked with Corporate social resoponisiblty IN TESCO
The ethical aspects address the morals within the business premise so that the image of the business organization is upheld. The theory gives a strategic approach to the groups that are stakeholders in
1 Pages(250 words)Essay
Self-interest and Ethics, Stakeholder/shareholder theory
27). However, it is often difficult to define what comes under ethical conduct. The question whether business self-interest takes into account the common good is equally significant. It has been argued that business self-interest is often motivated by
7 Pages(1750 words)Essay
The manager of the institution is commonly located in the center of the constitutional relation amongst a business institution and its stakeholders. The word Stakeholders has to two kinds of definitions one is the
2 Pages(500 words)Essay
Let us find you another Essay on topic Who Are Stakeholders Stakeholder Theory for FREE!
Contact us:
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us