Stakeholders Essay Example | Topics and Well Written Essays - 2500 words

Stakeholders - Essay Example Goodjik (2003) point out to the fact that management needs to build relationships with different stakeholders including shareholders, employees, customers, and society at large. This is only possible with increased transparency and accountability in practices on the part of the organizations and increased involvement or participation of the stakeholders in management decisions. The need to mobilize a sense of responsibility among stakeholders could help create an organizational context for participation and involvement and stakeholder arguments and opinions could be used to shift the balance of decisions in the interest of stakeholders. Active stakeholder participation is thus useful for any management perspective as considering stakeholder opinions and arguments could help create and strengthen partnerships between stakeholders and management at the corporate level. The stakeholder model assumes constructive partnership and dialogue between the management and the stakeholders includ ing the employees and is thus useful for promoting a beneficial relationship at the corporate level. This discussion focuses on the contributions of the stakeholders in business success and business performance of companies and emphasizes on the beneficial relationship between stakeholders ... The Role of Stakeholders: Stakeholders play an important role in an organization and affect corporate social performance and financial performance and Neville et al (2005) point out that a company's reputation could determine the corporate social performance and financial performance or CSP-FP relationships. Corporate social performance is related the stakeholders' resource allocation to an organization and how much stakeholders are ready to invest in or trust a company would in turn determine the performance and success of a company. In this context the stakeholder would trust or invest in a company based on the existing reputation of a company thus company reputation would determine stakeholder assessments and would also be relative to stakeholder expectations. Neville (2005) thus suggests that reputation of a company plays a key role in determining the CSP-FP relationship. Strategic management principles and competitiveness also change the CSP-FP relationship. Considering that corporate branding and reputa tion are important in achieving stakeholder trust, the role of marketing could be important for strategic advantages of any company as it helps build brand reputation. Maintaining stakeholder interests and stakeholder benefits is the major concern of companies and forms a major part of corporate social responsibility or CSR. Whitehouse (2006) used qualitative data from semi-structured interviews with representatives of 16 UK companies from different sectors and traced CSR policy development from identifying the meaning attributed to CSR to factors that help to implement CSR agenda. CSR objectives and policies are