|Type of paper:||Essay|
|Categories:||Management Business management Business strategy|
Stakeholders are individuals or groups of people who have interests and concerns in particular business opportunities that will purpose to their well-being in their locality or societies at large (Harrison and Wicks, 2013). In many organizations, several stakeholders will try by all means to make things carry on as stipulated by the organization or the companies at which they are located. Therefore, the stakeholders will try as much as possible to see things work as usual. The concerned parties, in this case, comprise suppliers, directors, employees, members of the community, shareholders the government. Therefore, it is the role of the public corporation with a good number of employees and many shareholders to ensure very keenly that the aspect of shareholder management is taken care of with a lot of concern (Howitt and McManus, 2012). Steps that are required to be made by the organization will significantly impact many stakeholders, including employees and the community, that facilitated the operation of the shareholders at the very last.
Impact on the Shareholders
Unions and employees with form the basis of the primary stakeholders will be significantly affected either directly or indirectly by the steps that the organization will take of eliminating their facilities to an underdeveloped nation this is as a result of gaining an advantage of obtaining cheap labor (Harrison and Wicks, 2013). For instance, we find that the employees working with the companies based in the United States will, therefore, collapse this will be as a result of lack of jobs within the states. In contrast, those that are from the underdeveloped nations will significantly be in apposition to secure their careers with the organizations despite the low pay. However, establishing facilities in the underdeveloped countries will enable the organizations to minimize chances of employees from an unusually high number to a reasonable number concerning the nation they will be based in resulting into less spending in terms of employees pay therefore employees will be working for the available payments since they were unemployed (Howitt and McManus, 2012).
In contrast, the other group of stakeholders impacted by the decisions of the public corporation on eliminating the manufacturing facilities to underdeveloped nations is likely to affect the community at large. Since the employees are the primary stakeholders, the community is the source of resources, particularly the raw material (Howitt and McManus, 2012). By eliminating the manufacturing facilities in the underdeveloped nations, this signifies that the local communities are at one point provides the companies and organizations with what they require to enable them to be on toes. Similarly, other stakeholders also take it as a duty to ensure that they take heed to matters involving security and other concerns that may lead to harm to society (Harrison and Wicks, 2013).
The company or organizations should also ensure that the communities within which they undertake their services are taken care of by providing that the individuals living in that particular community are as well beneficiary of the activities performed by the company. Therefore, following their manufacturing facilities, employees being members of the society will substantially be disadvantaged. On the other hand, the community may also not enjoy the products offered by the company or organizations operating in their area. However, being an advantage to the other aspect where the companies can undergo shifting of their products more often. This will be directly an advantage also to the local community at which they are conducting their operations by creating job opportunities to local communities, use local tractors, development of local facilities, and improving other investments in the community basically in the underdeveloped nations (Howitt and McManus, 2012).
Stakeholders who, at one point, fall victim to the organization's decisions are likely to suffer to a greater extent where the company opts to off-shore its manufacturing facilities (Howitt and McManus, 2012). Following this step of companies may undergo serious financial spending in ensuring their objectives are met. This can lead to some shareholders turning away from the company regarding themselves as potential investors to the company. The decision, therefore, may be successful or unsuccessful; no one is always in a position to work in hazardous environments since every individual is optimistic in achieving better goals (Harrison and Wicks, 2013).
For every organization to be a success, always all stakeholders comprising the customers, suppliers, business partners, employees, and other business agencies such as the government are required to have an interest in the success of the company or organization (Howitt and McManus, 2012). Immediately the stakeholder will have active and productive attention on the company or organization; they will, therefore, intend to achieve a long-term benefit from various corners of the market structure. Notably, the decision of the market puts it clear that a more significant percentage of their stakeholders will be impacted negatively, and this will may lead to the company failing in performing its duties due to a lack of proper decision-making (Howitt and McManus, 2012).
In conclusion, companies ought not to outdo their manufacturing facilities to underdeveloped nations claiming over the provision of cheap labor by such nations. A corporation can undertake a method whereby employees are employed to avoid several cases leading to challenges such as cheap labor in underdeveloped nations; according to Howitt and McManus (2012), this may lead to its failure. Shareholders should also be engaged and help them venture into partnership programs with the company instead of eliminating their manufacturing facilities.
Harrison, J. S., & Wicks, A. C. (2013). Stakeholder theory, value, and firm performance. Business ethics quarterly, 23(01), 97-124. https://www.cambridge.org/core/journals/business-ethics-quarterly/article/stakeholder-theory-value-and-firm-performance/B84D07B5B6241F83EC7D904E28B21015
Howitt, M., & McManus, J. (2012). Stakeholder Management: An instrument for decision-making. Management Services, 56(3), 29-34. https://www.researchgate.net/profile/John_Mcmanus21/publication/290161954_Stakeholder_management_an_instrument_for_decision_making/links/5c0eb18ea6fdcc494feb0006/Stakeholder-management-an-instrument-for-decision-making.pdf
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