Stakeholder theory emphasizes that beyond shareholders there are several agents

Stakeholder theory emphasizes that beyond

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Stakeholder theory emphasizes that beyond shareholders there are several agents that are interested in firms’ actions and decisions. The theory highlights the need for managers to be accountable to stakeholders. Stakeholders are individuals or groups which were either harmed by or benefits from the corporation; or whose rights have been violated or have to be respected by the corporation. Firms have several stakeholders which compete for organizational resources; hence, the need for firms to identify strategies for managing stakeholders. The type of stakeholders proactively engaged and resources control strategy adopted impact firm’s corporate strategy. From a business-driven viewpoint, stakeholder theory interest covers three premises: that organizations have stakeholders which impact their activities; these interactions impact on specific stakeholders and the organization; and perceptions of major stakeholders impact the viability of organizational strategic options. Firms, therefore, need to adopt suitable approaches to deal with primary stakeholders accordingly. Firms are unlikely to fulfill responsibilities (economic and non-economic) of some primary stakeholders; hence, the need for stakeholders management. The stakeholder approach outlines a new capability for organizations to develop their CSR policy. Through managing the stakeholders and their engagement in the CSR managers could more easily develop, integrate and realize the policy with bigger influence. Stakeholder engagement is an opportunity for managers to carefully listen to the issues raised in the engagement, fully understand the viewpoints presented around the issues and then engage in dialogues and action. The stakeholder engagement can vary, but its main purpose is to
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provide a framework for a dialogue in which devout stakeholders bring concerns forward to
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  • Winter '18
  • jablonski
  • Corporate social responsibility, Stakeholder analysis, Stakeholder theory

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