Stakeholder Theory Case – Thesis – Pat Gor
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Stakeholder Theory Case
The stakeholders theory is a principle of corporate organization on management andbusiness ethics ,in order to apply on norms ,values and management. It is originallyelaborated by Edward Freeman. It is a concept of attempting success in any kind ofbusiness. It indicates the importance of the value and relationship between thecompany and stakeholders internally and externally. For internal stakeholders:employees ,managers and owners. For external stakeholders: suppliers, society,government, creditors shareholders and customers. (Appendix A) (E Freeman,2010)It is necessary to concentrate in any aspect of those with no isolation, and establish thesame direct and interest together. Otherwise, the business might consequences indecline or remain unchanged. In short ,it endeavors to streamline the principle of whattruly counts . Four examples of connection failure in stakeholders theory will bedemonstrated below.(Appendix B)1.The suppliers are going to take order merely from above and do the same job at all,instead of trying to make their products to be better ,more innovative and creative.2.Employers do not give enough motivation to their employees; hence employees donot want to be in the workplace and pay 100% effort during the duty. The productivitymight decrease accordingly.3. Managements ignore and collide the local convention and regulations of otherforeign places, do not focus on the quality of life in the society , aspect of corporateresponsibility and topic of sustainability.4. The management level do not create the reasonably enough profitability for theirfinancial supporters and shareholders.

It is a notion to equalize and accelerate the relationships for everyone in the group, soas to focus that they do have the same interest and directions. Moreover, it alsopresents that if a business merely concentrate on financiers, it would easily lose theintegrity capitalism. As the external and internal stakeholders can actually originatesomething that no one of stakeholders can work in singularity. (E Freeman,2010)(315)PART 2BIn the other hand, shareholder theory has always been comparing to the stakeholdertheory. While shareholder theory advocate of maximizing the profits for shareholders,stakeholder theory is more about to pay attention to the stakeholdersIn shareholders theory , only shareholders are paramount to the tradition standpoint ofbusiness organization, and the company has the binding obligation to put their needsin priority ,to increase value for them. However, stakeholders theory dispute that thereare many various parties involved. And its including strategy management, corporateplanning system theory ,organization theory and corporate responsibility . The biggestdifference between both theories is the normative, for the reason that companies areinevitable to deal with the stakeholders, companies are not supposed to believe thatstakeholders have any intrinsic value to deal with them in anyway . Therefore, thepoint passes into how the way to regard them. Stakeholders theory is a principal facet,”The groups matter usually have a normative relationships and it is necessary forcompanies to consider stakeholders as opposed to the way companies do treat them or

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By: Pat Gor
Submitted: September 20, 2015
Essay Length: 660 Words / 3 Pages
Paper type: Thesis
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Stakeholder Theory Case And Stakeholders Theory. (June 17, 2021). Retrieved from https://www.freeessays.education/stakeholder-theory-case-and-stakeholders-theory-essay/