StudentShare solutions
Triangle menu

Stakeholders Theory - Case Study Example

Extract of sample
Stakeholders Theory

Basis of determining business relationships: As per the shareholder's theory, corporate relationships are determined by legal or implied contracts. Thus, it recognizes accountability towards those parties with whom an explicit legal agreement has been entered into. This vastly limits the scope of accountibility.On the other hand the stakeholders' school of thought
Escalation in value of shareholding: the shareholders theory endorses the objective of generating higher returns to the investment of the shareholders. Whereas the stakeholders' take is that, the corporation should strive to yield higher social returns to all the parties involved with it.
Objective of wealth creation: escalation in the value of shareholding will result in greater wealth creation; therefore, it is consistent with the traditional corporate objective of profit maximization. The proponents of the shareholders theory maintain this. However, the other view is that, when the interest of the stakeholders is taken into consideration then there shall be fairer distribution in addition to wealth creation, which will promote the general welfare of society.
The Tinged Shareholders theory contains a reconciliation of the main ideas of the two schools of thought. It makes allowance for moral and social obligations and at the same time retains the director's fiduciary duties and holds them responsible to the shareholders. The conflicting grounds of the normative and instrumental approaches are blurred in this theory. The traditional profit-maximizing objective of the shareholders theory is maintained, while incorporating the corporate social responsibilities as well, therefore it is consistent with moral duty.

c) I find the stakeholders theory rather convincing. The recognition of commercial pursuits and social obligations appeal to me. The stakeholder's theory can justifiably claim to be superior because it upholds the interests of the owners without neglecting social welfare. If a company is profitable but its employees are a harassed lot, or its suppliers are bleeding dry because of the constant pressure of cutting costs, it defeats the purpose of corporate social responsibility. Singular motive of wealth creation can be ruthless if fair distribution and social welfare are neglected. A company owes responsibility towards it's employee's for improving their quality of life as much as it owes to it's customers for rendering quality at reasonable prices.
.Wal-Mart is a case in point. This example demonstrates that commercial quests should not be divorced from social responsibilities.Wal Mart is the largest retailer in the world with a 20% market share in America and a formidable presence in retail in most parts of the world. It has gone overboard in its attempts to cut costs and increase profit margins. Recently exposed practices include locking overnight workers in its stores, allowing Wal-Mart maintaince contractors to use illegal immigrants as janitors. It is also known ...Show more

Summary

b) Stakeholders theory has been established on the premise of corporate social responsibility and social responsivess, thereby acknowledging the corporation's broader responsibilities towards all those who are involved with it. This is marginally different and encompasses greater responsibility than the traditional 'profit maximizing' rationale contained in the shareholders theory…
Author : nicolasmackenzi
Stakeholders Theory essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the case study on your topic
"Stakeholders Theory"
with a personal 20% discount.
Grab the best paper

Related Essays

Qantas Consumer Behaviour Theory

It is evidently clear from the discussion that through the strategic planning concept, Qantas is able to expand their business and target new customer segment which helps to reduce the risk of downfall. Qantas positions its brand as ‘safe’ and ‘Spirit of Australia’ and accordingly offers those services which can satisfy these brand images.

4 pages (750 words) Case Study
Leadership Theory
Leadership has become a critical requirement for organizational success. A leader capitalizes on individual strength to fulfill the roles entrusted on him. Effective leaders are proactive performers that maintains balance between different forces that affects an organization and its people..
6 pages (1500 words) Case Study
Business,society and policy
This report is concerning the business perspective of Panther Sports, who have outsourced the soccer balls manufacturing in Pakistan, and are now faced with an ethical problem that is putting their sales, credibility and stronghold in the Asian sports market at jeopardy.
4 pages (1000 words) Case Study
Introduction; Vision, Mission, and Stakeholders
(Helm 2007) In traveling to Italy, Schultz discovered the sociological impact f coffee shops on the Italian way f life. Believing Americans needed a third place besides work and home, Shultz transformed a downtown Seattle shop into an espresso bar under the Starbucks name to more closely resemble the Italian coffee shops he had visited.
5 pages (1250 words) Case Study
Criminology Theory
Ashley Stokes Plunkett was 19 years old and the mother of a young son. On June 21, 2005 she was dumped from a car at Flat Shoals Parkway where she managed to wave down some help. Unfortunately she had died of her stab wounds later that evening. Now two weeks later Ashley's mother was talking to a journalist because she was worried that Ashley's case was not being treated with any seriousness; apparently a police detective had already told her that Ashley's was not the only homicide he was dealing with at that time.
2 pages (500 words) Case Study
Theory of representation
In particular, Phillips' introduction of the notion of "politics of presence" adds new dimensions to political discourse in liberal democratic societies. Given that for much of twentieth century history minorities and women were excluded or marginalized from the electoral process, the study of representative democracy assumes new significance today as conventional barriers of race, gender and ethnicity becomes weakened.
10 pages (2500 words) Case Study
Nursing Process Theory
Claire Faust used the theory to understand and treat the problems patients might have in nursing homes. Clayton used it to determine how a patient with cancer pain could best communicate their pain and suffering, especially in the case of breast cancer patients and Fawcett analyzed the theory for its best use in the medical surgical setting.
4 pages (1000 words) Case Study
TCP Strategic management. Stakeholders
The stakeholders are grouped into different quadrants of the power-interest matrix. For the low power-low interest quadrant, the US public and the information gatekeepers such as the media and analysts are included. For the low
10 pages (2500 words) Case Study
Phinney's theory
Her study involved both the junior and high school adolescents who normally were established to be at solitary state of three levels of ethnic identity growth. The first phase, Unexamined Ethnic distinctiveness, it is characterized by the lack in exploration (Ortiz. 2009).
2 pages (500 words) Case Study
An analysis of stakeholders and the impact that implementation of particular option will have on them
The first and the most obvious stakeholder is TideeKleen itself. It is quite obvious that if the decision has negative consequences the company might collapse and all the efforts that were put into it will disappear in vein.
4 pages (1000 words) Case Study
Get a custom paper written
by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT
Comments (0)
Rate this paper:
Thank you! Your comment has been sent and will be posted after moderation