Strategic Stakeholder Management
The strategic stakeholder management is basically a theory based on organizational management. The ground of strategic stakeholder management is laid on business ethics that reflects the principles, morals and all the values that are involved in controlling the organization. The Strategic Management: A Stakeholder Approach, book originally written by R. Edward Freeman explains, visualizes and models the framework which is actually the stakeholders of corporation. The book depicts and recommends both ways through which due regard is given to the benefits of those groups, by the organizational management. In other words, it is an attempt to welcome the “Principle of Who or What Really Counts.”
The strategic stakeholder management is basically instrumental theory of corporation, which incorporates the resource based view and the market-based view both. The Socio-political level is the one added feature in it. The instrumental theory approach of firm determines the specific stakeholders of corporation and also examines the prospects in which these parties are to be dealt with as stakeholders. Though, Stakeholder management contributes to major part of company’s strategy but it in no way is linked to drive that strategy. The direct effects model and moderation model are namely, the two versions of Strategic Stakeholder Management approach. The direct effects model determines attitude and action of various managers in response to the stakeholders. In fact, it directly affects the firm’s fiscal performance, and its independence from the corporate strategy. Stakeholder management as a reference outlines the exact relationship between certain facts and figures and also its conceptualization Stakeholder management is just a way to reach the finished line; it describes the way through which something can be achieved by doing something else. However, the goal of firm is not aimed at attaining solely the welfare of stakeholders but also in advancement of interests of the shareholders too.
Written by: Matt
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Tagged as business ethics, conceptualization, corporate strategy, due regard, exact relationship, finished line, fiscal performance, management approach, moderation, morals, organizational management, prospects, r edward freeman, resource based view, stakeholder approach, stakeholder management, stakeholders, strategic management, theory approach, two versions + Categorized as Economy articles, Finance, Ladership & Management