Stakeholder theory which is difficult to adapt in a

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stakeholder theory, which is difficult to adapt in a real business. (Kaler, 2009; Tullberg, 2013) criticized stakeholder grouping. They argued that the scientists often distinguish only a few key stakeholders and group them into two categories the primary and the secondary stakeholders. (Kaler, 2009) provided a broader view on stakeholders and on their grouping. He argued that the interests of the secondary stakeholders must be equated with the interests of the primary stakeholders. From the business prospect, stakeholders are often grouped depending on the financial value to the organization (Tullberg, 2013). For this reason, the scientists treat shareholders and employees as key stakeholders of the organization. The insights in this area enable to state that the scientists do not consider a context in which the organization acts. It is important to consider the sector in which the organization operates, what the product is and who the final consumer is. For instance, the shareholders may actually be considered as the most important stakeholders in the financial sector, while the consumers take up a leading position in the service sector. Paradoxically, in the scientific literature the consumers are treated as less important to the organization. (Parent & Deephouse, 2007) conducted a research in France, and (Boesso & Kumar, 2009) conducted a research in Italy and America to identify the criteria of a stakeholder priority in public organizations. These researchers have found that the main criterion is power. The second criterion is the legitimacy of stakeholders who have a privilege to regulate the performance of the organization. Meanwhile, the urgency of stakeholders was not very important. However (Vazques-Brust et al., 2010) research in Argentina and (Siriwardhane & Taylor, 2014) research in Australia revealed that the urgency and the legitimacy of stakeholders are more important criteria than the stakeholder power. If we eliminate the influence of the cross-cultural differences, it can be concluded that in business the stakeholders are often divided into the primary and the secondary according to their importance to the organization. However, the scientists acting on business interests got different results, comparing with the situation 5 7 years ago. Nowadays the organizations give the priority to stakeholders, previously considered as the secondary. Generally and particularly, the organizations reduce the gap between different stakeholders according to their importance to the organization. To summarize the stakeholder grouping and its importance, it should be first emphasized that the stakeholder grouping is one of the most important and decisive factors, which determines not only the performance of organization, but also its reputation. Although scientists propose the different methods of stakeholder grouping, it is true to say that all of them are in some sense based on a stakeholder grouping according to stakeholder importance to organization. The stakeholders are mostly divided into the primary and the secondary groups. However, the scientists
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  • Winter '15
  • m
  • The Land, Freeman, Stakeholder theory, Importance of Stakeholders

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