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Establishing Stakeholder Orientation - Coursework Example

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Stakeholders, in this sense, are the entities that define the existence of a business. Stakeholders, for instance, may comprise the customers, employees, shareholders, the community, and…
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Establishing Stakeholder Orientation
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Establishing Stakeholder Orientation

Download file to see previous pages... The development of the world has made individuals realize that business has a role that extend beyond economic wealth creation. Businesses possess a social role since they create externalities in the environment. For instance, proper enumeration of employees compensate for the cost that workers incur in working for the company. Organizations participate in stakeholder orientation for their own benefit and for the sake of stakeholders’ satisfaction (Maurer, 2007). In this sense, the stakeholders feel that the organizations take care of their needs.
Stakeholder orientation seeks to establish sustainable economic development by working with the employees, local community, shareholders, and the larger society (Ferrell, Fraedrich & Ferrell, 2013). This has a significant impact on honesty and fairness since corporate entities manifest as partners in societal development. When organizations emphasize on the satisfaction of their stakeholders, the larger society is highly likely to respect the profit making intention of businesses. In addition, it promotes information sharing, which makes the business’s activities and intentions clear. This enhances accountability as each party enjoys the incentive to practice ...Download file to see next pagesRead More
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