Organization and its Stakeholders
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A stakeholder is any party directly or indirectly linked to an organization who is positively or negatively affected by the progress of the firm. Business partners, customers, local and nationwide government may be a part of the stakeholders team. It is for a reason that stakeholders of an organization exist in several hierarchical modes that are dictated by how much they influence on the organization. Moreover, it is needful for the organization to be able to understand the interests of each of these stakeholders group and their influence on the organization. Inevitably, some stakeholders have strong influence on the organization decision making while others are channels through which an organization receives its resources.
Primary stakeholders are linked to the organization in a way that any decision done by the organization affects them positively or negatively without any intermediary or shield. The managerial decisions affect them on one basis. They may be customers, organizational staff, or even suppliers. Stakeholders like the government, competitors and interest groups can be secondary as a decision from the managerial team may not directly affect them. For stakeholders in order to feel as a part of the organization they should have some interest where in cases of much gain or lose, they will be more keen hence interested. More involvement implies more interests.
These interests will vary depending on the stakeholder. A staff of the organization can have interest on improving the working conditions, working time, and profits to be assured of future survival of the business. Financiers and shareholders may be concerned with the expansion of the company, the expenditure, and usage of the finances. On the other hand, the government may be concerned about the safety and the security of the workers and clients.
Assessing the power and interests of stakeholders helps the organization to come up with goals concerning them and aids in drafting its goals and objectives in a way that pleases a good number of its stakeholders. It is not wise to have just a quarter of the stakeholders who are satisfied with the organization plans while the needs of the rest are not met.
When all ideas of the stakeholders are considered, the organization is able to find a community approach as its goals pool from a team of everyone in the society who is associated with the organization. This, in turn, fosters acceptance of the organization even to the larger community. An accepted organization with all the stakeholders satisfied thrives on the acceptance of everyone. There is no sneering at the organization activities, but support by every meber of the community. Consequently, balance is achieved and stakeholders feel to be a part of the organization, thus they can contribute positively in working toward meeting the organizations’ objectives. Having this pool of people, makes a team of experts pulled from different fields, hence, more ideas are placed on the table.
If the stakeholder’s needs are well catered for, the organization does not have to incur heavy corporate social responsibility programs in its budgets. Furthermore, the company name is preached to the outside world by the stakeholders themselves. Having met all needs, the organization products are easier to market to the masses and it appears transparent.
Markwell (2010) observes that, though, the organization maybe working in order to satisfy each of the stakeholder’s needs, competitors will never be satisfied. In case of counter forces, the organization will be able to survive. Of primary importance is the ability to understand the needs it may have ignored with regards to the silent stakeholders.
For better survival it is crucial for the organization to view stakeholders with a control of resources to be the most interested and is followed by those who would like to lead the organization. Suppliers and vendors who benefit from the association have an interest too closely followed by specialist in information as well as those who link to other organizations. Stakeholders outside this scope ought to be considered too for the safe and better survival of both the internal and external environment of the organization.
Implications of Legal but Unethical in the Social Enterprise View
As discussed by Plato in The Republic, justice is to the interest of the strong where he argues that the law of the land is merely a compromise. Left on their own, human beings would turn to evil more than to good. To date, humans have perfected their behavior to the legal society having been able to have enough loopholes of escape in the law that they have formed.
Social enterprises are driven by goals within community culture, social, and economic empowerment with revenue in return (Nicholls, 2007). Starting with corporate social responsibility, organizations that cannot co-exist socially have used it to refer to their social part. It is much unethical to give donations to charity from the profits of wrong practices of trading even though approved by law as legal. It is impossible to color with white paint in order to remain good from inside.
Having laws in a country that do not cross borders does not mean thaat morals cannot. If an organization agrees to invest abroad to a bank that exploits minor services or rather underage children such that its customers enjoy better rates it is ethically wrong, though, legal. It is said that a number of businesses are doing well financially but they pay poorly to their employees who have generated for them such revenue. Even though, many of these organizations fulfill the minimum wage requirement, it is ethically wrong to oppress employees by not giving them value for what they have generated.
Stewardship is a virtue that business lacks. In case a manager spends home for one night and the other at the hotel he would be lying to be reimbursed the exact amount. In the same idea, it should be unethical to book a highly costly luxurious hotel while attending a business meeting when one would still be comfortable in an affordable alternative hotel saving the company resources. Some unethical behavior though legal pay back to the business. Consider selling poor quality goods or low quality service with the knowledge that better can be offered at higher cost that the customer is paying for.
A company should pay its suppliers on time. Workers should be paid on time, too. If a country’s legal framework gives the company a duration of three months before any legal action can be considered against the company, then the company may exploit such a loophole. If by any chance the company has the money but overstays with it until the supplier goes bankrupt, it is unethical. If the company workers go for two months without pay while the company is holding back the money with no good reason then it is also unethical.
What someone cannot be taken to court for is legal. The problem comes when ethics and morals are summoned in order to stand side by side. For instance, it is unethical to have extra-marital affairs with the married within the organization, but it is not illegal. The manager should confront such behavior failure to which may at times cost the organization one of its good staff or its name is tainted in the public domain.
Keeping the environment clean should be a responsibility of the organization regarding the goods or services it produces. Furthermore, an organization that packages its goods on plastic bags and makes no efforts on such waste management is not doing right. There may be no law obligating the organization concerning its waste management or its packaging but it is an unethical practice to fail to conserve the environment. Conclusively, even though some practices in an organization may be deemed legal, but unethical, organizational behavior must strive to find an intersection between the two aspects.
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