Distinguish Between Shareholder and Stakeholder in a Business Context. Comment on...

Introduction This paper specifically tries to distinguish between sh areholder and stakeholder in business setting. Firstly, there will be analysed of import ideas of stakeholder theory, main principles of it. Secondly, the importance and characteristics of stakeholder interdependence will be shown. Thirdly, clear assignment of main stakeholder groups and relationship between those groups will be outlined. In order, to distinguish shareholders from other stakeholders there will be carve up analysing identity of this group. This analysis is followed by exceptionally important rights of shareholders which are giving them power to influence both companys direction and through this other stakeholders. Stakeholder theory and concept According to freeman stakeholder (1984) sight be defined as any person or group which is affected by or can affect achievement of the organizations objectives (Freedman and Miles 2006). In this context organization is seen as a grouping of stakeholders and its purpose should be to manage their interests, needs and viewpoints. The fundamental role of stakeholder management is untruth on top- level managers. Freeman in whose seminal run for (1984) emerged new conception of stakeholder theory has elaborated two principles of this framework as follows: 1.

The stakeholder - enabling principle. Corporations shall be managed in the interests of stakeholders. 2. The principle of coach responsibility. Directors of the corporation shall have a duty of care to theatrical role reasonable judgment to define and direct the affairs of the corporation in accordance with the stakeholder enabling principle. Freidman and Miles (2006) So stakeholders are those individuals or groups who depend on the organization to fulfil their own goals and on whom, in turn, the organization depends. In other words, any actors in the environment that is affected by an organizations decisions and policies or/ and can influence the organization traditionally can be defined... If you want to get a full essay, order it on our website: Orderessay

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