Why a Manager Should, or Should Not Be Considered a Stakholder? Essay Sample

Why a Director Should. or Should non. be considered a Stakeholder Stakeholders are those groups from whom the organisation has voluntarily accepted benefits. and to whom the organisation has hence incurred duties of equity. Typically. this includes groups such as moneymans. employees. clients. providers and local communities. I believe that directors should non be considered stakeholders. Directors should admit and actively supervise the concerns of all legitimate stakeholders. and should take their involvements suitably into history in decision-making and operations. Directors should listen to and openly communicate with stakeholders about their several concerns and parts. and about the hazards that they assume because of their engagement with the corporation. “In amount. we argue that stakeholder theory must account for power and urgency every bit good as legitimacy. no affair how unsavory or fazing the consequences.

Directors must cognize about entities in their environment that clasp power and have the purpose to enforce their will upon the house. Power and urgency must be attended to if directors are to function the legal and moral involvements of legitimate stakeholders. ( Mitchell. Agle. & A ; Wood. 1997. p. 882 ) . ” Managers should ethically work hand in glove with other entities ; both public and private. to see that there are no corporate activities hazards. Directors have to admit the possible struggles between their ain function as corporate stakeholders. and their legal and moral duties for the involvements of all stakeholders. and should turn to such struggles through unfastened communicating and appropriate coverage. “Stakeholder theory maintains that normative or legitimate stakeholders are owed an duty by the organisation and its leaders. Runing an organisation does non licence a director to go against the norms and criterions of society. but alternatively introduces a bran-new set of moral considerations based on stakeholder duties. In regard of normatively legitimate stakeholders ( e. g. moneymans. employees. clients ) ; the moralss of concern implies more duties instead than less. ( Phillips. 2004. p. 5 ) . ”

Mentions

Mitchell. R. K. . Agle. B. R. . & A ; Wood. D. J. ( 1997 ) . Toward a theory of
stakeholder designation and saliency: Specifying the rule of who and what truly counts. The Academy of Management Review. 22 ( 4 ) . 853-886. Phillips. R. ( 2004 ) . Some cardinal inquiries about stakeholder theory. Ivey Business Journal. 1-5. Retrieved from hypertext transfer protocol: //www. iveybusinessjournal. com/view_article. asp? intArticle_ID=471