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

Stakeholders - Essay Example This turbulence is caused by the existence and emergence of different groups of people in the business arena all of whom have interest in the business. The business is therefore endowed with the responsibility of serving the interest of the so called, â€Å"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 corporate 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 organization’s goals. Contents Executive summary I. Introduction II. Preble six step process III. Selection and discussion of two important stakeholders IV. Freeman’s Model Approach V. Conclusion References I. Introduction To catch up with the unstable environment facing many U.S. industries and businesses, business executives are required to efficiently and effectively manage all their stakeholders. Stakeholders is a wide term 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 detriment 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 case 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 like the mixed blessing who the business really need (Ravindra, Moray & Tom 2003). II. Preble 6-step Stakeholder Manageme nt Process Model Step 1: Stakeholder Identification Stakeholders can broadly be categorized as either primary or secondary stakeholders. Primary stakeholders are those whose continuing participation is required if an organisation is to survive and prosper (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 engaged 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), activist 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 co rporate 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 voting power, economic power in that they can sell their stake and political power which could be exercised at the company’s annual meeting as in the case of a dissident shareholder (Post, Preston &