Friday, December 27, 2019

The Management Of A Company - 1238 Words

How would you feel if you owned part of a company, but could not help make any decisions on the future of the company? Those who own majority of the company decide to hire mangers to make important decisions on your company. This is a general example on how shareholders run their company. Now wouldn t you rather help make decision, or be able to factor in ideas from the employees and community that has helped the business grow? If so, you might want to consider the stakeholders theory. Different stakeholders can hold varying amounts of influence and interest, within the organization. For example, consider a factory worker. An individual worker has large interests in the company, in terms of working conditions, salary, and benefits.†¦show more content†¦Internal stakeholders are described as â€Å"the managers and employees of a company.† Connected stakeholders are those that are beyond the immediate boundaries of the firm, while external stakeholders are those who are outside the firm. Some would say it is rather difficult to argue the stakeholders theory because there is not as much information on the subject as there is shareholders theory. They would argue that shareholders own most corporations; and presently, corporations owned by stakeholders would be unsuccessful in the long run. There has been some debate on the legitimacy of the concept of the stakeholder, according to Friedman and Miles. â€Å"The stakeholder concept has not gone unchallenged. Many have reiterated the alternative stakeholder positions. Others have challenged implications of the stakeholder concept for certain groups† (Friedman and Miles 118). Friedman and Miles go on to argue how stakeholders can weaken an organization, and even alter its long-term characteristics. Assume that the stakeholder concept is infallible and consider the example of the factory worker. The company is publicly owned and is located in a more economically developed country (MEDC), where it will have a weaker influence from the government when compared to government owned companies. Labor unions associated with the company will likely be strong and workers will have a higher influence than they would in a less economically developed country (LEDC) where unions are

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