According to Crowther (2010), stakeholders are players in an organization who have a pegged stake, claim or interest in the outfit they subscribe to. The carder falls into two categories namely internal and external stakeholders. Examples of stakeholders in an organization are shareholders, customers, suppliers, investors and employees.
Stakeholders affiliated to any organization must have concern and a burning interest in the ethical management of the organization (Phillips, 2003). Different categories of stakeholders be it customers, employees or shareholders recognize the fact that the particular organization they are affiliated to serves them and failure to display concern in its ethical management would amount to jeopardy. Kaler (2011) gives a perfect example that shareholders who are the owners of an organization receive benefits in terms of dividends from the particular organization they subscribe to. The carder comprehends that unethical management of the organization would most likely result to deterioration in performance. The outcome of such a scenario would be a decline in profits realized and consequently reduced dividends. The stakeholder’s would therefore reap less for lack of showing interest in ethical management of the organization (Kaler, 2011). Overlooking on the way an organization is management would affect the stakeholders claim, stake and interest in the particular organization.
The size of the divided or the success realized is not all that matters to stakeholders. The stakeholders harbour other concerns such as the organization’s posterity. The group lives to ensure that despite how successful an organization is, the future of the outfit is guaranteed, to ensure sustained benefits over years (McLean, 2006). The stakeholders want to ensure presence of ethical management to guarantee existence of the organization for many years.
Crowther, D. (2010). Stakeholders. International Encyclopedia of Organization Studies. doi:10.4135/9781412956246.n500
Kaler, J. H. (2011). Who are an organization’s stakeholders and to what extent should an organization have regard to their interests? London: Henry Stewart Talks.
McLean, G. N. (2006). Organization development: Principles, processes, performance. San Francisco: Berrett-Koehler Publishers.
Phillips, R. (2003). Stakeholder theory and organizational ethics. San Francisco: Berrett-Koehler.