Needs And Important Of Shareholders

Introduction

Stakeholders are directly or indirectly involved with the organization and they include suppliers, customers, employees, financiers, communities and so on. The stakeholders’ theory is a concept that has gained popularity as a contributor to business ethics. The theory can be applied in the management of organizations, and business ethics which focuses on the morals and values in management of organizations (Phillips,2003). The concern for stakeholders has become a highly recognized and defining feature the ethical management of organizations. The theory requires that managers strike a balance when it comes to all the interests of the stakeholders rather than advancing the interest of shareholders only .I concur with this argument and this outline will highlight the areas to be covered on the issue.

Importance of stakeholders

The section will highlight the importance of each of the stakeholders associated with the organization .It will also look at the roles and contributions of the stakeholders to the organization (Friedman, Andrew, &Samantha 2006). With this knowledge t is easy to get the relevance and importance of striking the balance of their interest.

What stakeholders want

It is of great importance to find out exactly what the stakeholders want from the organization. This section will look at the association that exists between the organization and stakeholders’ .It will clearly give an indication of exactly what the stakeholders want to achieve from their association with the organization. The managers will be able to strike a balance of the interests of the stakeholders knowing exactly what each of them wants.

Balancing the interests of all stakeholders

This section highlight on exactly how managers are supposed to strike a balance between all the stakeholders interest. It will give an indication of actions the managers should take in order to achieve this (Phillips, 2003).

Importance of striking a balance in stakeholders interests

This section will highlight on the benefits an organization and stakeholders will get if there is a balance between the interests of all the organizations stakeholders.

Position of shareholders

This section will look at the views of those for the idea that the interests of shareholders being advanced exclusively (Hollington, 2006). It will look at various reasons why the shareholders should be the people to be exclusively considered in an organization.

Conclusion

The conclusion will contain overall remarks on why the managers of organizations should ensure that they strike a balance in the interest of shareholders instead of advancing the interests of the shareholders only. It will explain how the stakeholders’ theory can be put into application in organizations.

References

Friedman, Andrew L., and Samantha Miles. Stakeholders: theory and practice. Oxford: Oxford University Press, 2006.

Hollington, Robin. Shareholders’ rights. 5th ed. London: Sweet & Maxwell, 2007.

Phillips, Robert. Stakeholder theory and organizational ethics. San Francisco: Berrett-Koehler, 2003.

Zakhem, Abe J., Daniel E. Palmer, and Mary Lyn Stoll. Stakeholder theory: essential readings in ethical leadership and management. Amherst, N.Y.: Prometheus Books, 2008.