Essay UK - http: That argument is more compelling. To be sure, most U. One obvious way in which this can be done is for the board of directors to dismiss senior executives who do not maximize profitability.
University of Chicago Press, That is because of the common idea that having a World Heritage site Stakeholder theory and competing concept essay tourism but that differs among countries and regions especially when comparing rich and poor countries where World Heritage sites have less influence on tourism arrivals in richer countries and also too many World Heritage sites in one country shows a decline of tourists except on the short-term Huang, et al.
Gibson argues that enterprises should also consider secondary stakeholders, stakeholders that may affect the firm in a more indirect way such as labour organisations, since they can become a direct stakeholder through different types of actions.
Also the importance of the stakeholder theory may not be ignored anymore since the society becomes more aware and claiming towards corporations when they ask for moral behaviour, high company standards and openness about information for instance Strand, Firstly, the focus was on conservation, managed mainly for visitors and tourists and it was about protection.
Consider a business with many long-term employees that has manufactured its products for more than 30 years in a small Mid-western town. The above citation brought new social networks, a growing sense of the community and a better understanding of the World Heritage site especially for the local society.
For example, Enron Corp. Management of stakeholders results in better consequences, a better respect of human rights and a better human character Stieb,p.
It must be remembered that shareholders get a return from their invested capital in two different ways: Consider a business with many long-term employees that has manufactured its products for more than 30 years in a small Mid-western town.
First, consider the assertion that the theories converge — that if managers take care of the stakeholders, they will wind up maximizing profits and shareholder returns in the long run. Search our thousands of essays: This requires much more collaboration between management and stakeholders as practised today what can be seen as a link with the stakeholder theory and sustainable tourism development ibid, p.
Great companies endure because they manage to get stakeholder interests aligned in the same direction. Scandals at Enron, Global Crossing, ImClone, Tyco International and WorldCom, concerns about the independence of accountants who are charged with auditing financial statements, and questions about the incentive schema and investor recommendations at Credit Suisse First Boston and Merrill Lynch have all provided rich fodder for those who question the premise of shareholder supremacy.
However, the stakeholder theory would infer a normative obligation to both the community and the employees; while it might not demand that the company continue to operate the plant, it would expect some attempt to retrain the employees, help the community attract new industry and so on.
Second, the argument seems to suggest that the shareholder theory prescribes any action in pursuit of shareholder returns.
Stakeholder Analysis techniques provide the tools to quickly identify important stakeholders and stakeholder engagement research helps businesses to effectively engage with their stakeholders.
About the Author H. It has been noted that without continuing relationships with primary stakeholders, an organisation will not be able to survive in a turbulent world ibid. Should companies seek only to maximize shareholder value or strive to serve the often conflicting interests of all stakeholders?
As many observers have pointed out, the stakeholder view does have a historical tradition in the U.
Third, whichever theory is embraced, executives need to be clear about the choice in organizational communications. The stakeholder theory has been created by Freeman when he felt a need to create a stakeholders framework for businesses since times became more turbulent.
If stakeholder interests are being considered only as a means to the end of profitability, then managers are using stakeholders to effect the results dictated by the shareholder theory.
One obvious way in which this can be done is for the board of directors to dismiss senior executives who do not maximize profitability.Since stakeholder theory provides no criteria for what is better or worse, it leaves boards of directors with no criterion for problem solving and firms that try to follow the theory will eventually fail if they are competing with firms that are behaving so as to maximize value.
All the mentioned thoughts and principles of the stakeholder concept are known as normative stakeholder theory in literature. Normative Stakeholder theory contains theories of how managers or stakeholders should act and should view the purpose of organization, based on some ethical principle (Friedman ).
This essay first presents an overview of the concepts of the corporate responsibility and stakeholder theory, discussing the link between the two. The essay then culminates in a discussion over whether business’ approach to corporate responsibility is strategic or.
This free Business essay on Essay: Stakeholder theory is perfect for Business students to use as an example.
A stakeholder can help but also hurt an enterprise (ibid). The stakeholder theory is meant to break the confusing circle (avoiding problems), is a strategic management process and not management planning process, is about the.
Stakeholder Theory and Competing Concept Words | 7 Pages Introduction Stakeholder theory was given by R. Edward Freeman, which was expressed many ways to represent the stakeholder as an important part of the corporate responsibility. Business Management - Stakeholder Theory and Competing Concept.
Essay on The Stakeholder Theory by Thomas Donaldson - A stake holder, in general is defined as an individual or organization likely affected by the performance of an organization.Download