Stakeholders Essay Example | Topics and Well Written Essays - 1500 words

Stakeholders - Essay ExampleThis turbulence is caused by the existence and emergence of different groups of people in the business arena each of whom have interest in the business. The business is therefore endowed with the responsibility of serving the interest of the so called, stakeholders in equal measure. This will ensure that they are all satisfied to enable the business operate profitably (Savage 1991). In dealing with the stakeholders strategic management skills come in handy to ensure the merged objectives are also met. This report has the obligation of finding the appropriate stakeholder approach and the decisions to be made with regards to the stakeholders for the realization of the organizations goals. Contents Executive epitome I. Introduction II. Preble six step process III. Selection and discussion of two important stakeholders IV. Freemans Model Approach V. Conclusion References I. Introduction To take up up with the unstable environment facing many U.S. industri es and businesses, business executives are required to efficiently and effectively manage all their stakeholders. Stakeholders is a wide edge which is used to refer to those individuals, groups, and other organizations who have an interest in the actions of an organization and who have the ability to influence such actions either to the benefit or trauma of the organization (Post, Preston & Sachs 2002). This integrative approach assumes that an effective organization strategy requires consensus from a plurality of key stakeholders about what it should be doing and how these things should be done for the success of the organization. The quality also demonstrates that executives should use an overarching strategy to change relationships with stakeholders from less favorable categories such as non-supportive that may be dangerous to the business to more favorable ones interchangeable the mixed blessing who the business really need (Ravindra, Moray & Tom 2003). II. Preble 6-step Sta keholder Management Process Model Step 1 Stakeholder Identification Stakeholders can loosely be categorized as either primary or secondary stakeholders. Primary stakeholders are those whose continuing participation is required if an organisation is to survive and flourish (Savage 1991). They include the Shareholders, Investors, employees, customers and suppliers. Secondary stakeholders on the other hand are those who influence or affect, or are affected by, the corporation, but are not pursue in direct transactions with it and are not essential for its survival. They include the media, students and academics, unions, socially responsible investor, special interest groups (experts from social and environmental areas relevant to Nestle) and Non-governmental organizations (NGOs), active groups, environmental organisations, human rights group. We also have Public stakeholders who provide the firm with infrastructure and legal frameworks in which to operate Governments, community and recipients of corporate giving and so forth (Preble 2005). Step 2 general nature of stakeholder claims and power implications We start with ownership where Shareholders have a financial equity stake in the firm, which gives them suffrage power, economic power in that they can sell their stake and political power which could be exercised at the companys annual meeting as in the case of a dissident shareholder (Post, Preston &