Stakeholder Theory Of The Corporation: Importance Of Employees And Ethical Organizational Culture Development

Why are Employees Salient Stakeholders?

Discuss about the Stakeholder Theory Of The Corporation.

In Institutions, there are different stakeholders. These stakeholders include investors, directors, managers and subordinate staff. For an institution to run smoothly thereby must be rules and regulations which govern the stakeholders. The rules and regulations are an example of a business culture, and a form of ethical behavior. An institution should have proper communication amongst all stakeholders, as well as openness, and trustworthy.

Employees are salient organisational stakeholders. Outline relevant frameworks from the ‘Managing Stakeholders’ course to explain A) why employees are salient stakeholders and B) why an organisation should respond to employee stakeholder demands and expectations

Employees are salient stakeholders in an organization (Jaspers, 2009). Though people may think that this is just a belief, it is true that an organization cannot operate or meet its target without the employees. That is why it is said that employees are salient stakeholders in all organization. Though there are other important branches in organizations, which include the managers, and the directors, they are not as important as the employees (Haw, Hwang, & Wu, 2008). Considering a life example whereby there is a demonstration in the Wal-Mart company, or a strike of the employees, there will be a lot of confusion in the company since operations will have to stop until the managers convince the employees to get back to work. Therefore, the employee sector in an organization is the backbone of the company (Freeman, 2004). The managers may also strike, but operations and work in an organization can resume without them. This may possibly happen because there are employees who have self discipline, are organized and responsible, and can operate with or without supervision. In addition, the managers’ strike does not concern the employees or the directors’ section in anyway. This is because, they are not as important as the employees in the organization. Employees therefore make up an organization. They affect the whole organization either positively or negatively (Kanji, Malek, & Tambi, 2009). Therefore, they are the reason as to why managers bare employed. This point means that there could be no managers or directors if there were no employees. Therefore, the employees must be respected, and ragged highly all through, since they are the reason as to why those senior employees are there.

Though some managers or senior staff tends to humiliate the employees, they should know that what they know is less than what the employees know. In addition, what these managers know is what these employees put in to practice on daily basis. The employees may have scored poorly in their areas of expertise. However, they have their areas of perfection, where their strength lies. Therefore, they can d something else better than the mangers. Another example is that of an employee who worked for a company for seven years, the shoe company relied on the worker since he was fast and effective, and therefore could make different types of shoes within a short period of time. The worker therefore worked with ease and seemed to be satisfied in his position. He made the company famous and everybody wanted to get a pair of shoes from the company. The top managers did not respect his work, and therefore treated him as any other worker (Mikalsen, & Jentoft, 2009). However, during the eighth year of job in the show company, he got inspired by another worker’s story on how he started his own branch of repairing the torn shows. He took wanted to have a side hustle, but could not do a competing business. However, when he explained his thoughts to one of the directors, the director promised to increase his wage, and reward him accordingly. The reward came as a result of little effort that was t be applied during advertising the shoes to the public. Little did the company know that it was giving the employee a chance to open his own industry? Te employee became a celeb and therefore famous. He advertised the shows and in return, he got a salary that could pay a manager for a period of two years. That was enough for him to open his own industry. Therefore, he was not shocked to see the managers who humiliated him coming to seek for an employment in his company. This is a moral l lesson to the mangers who humiliate their employees. Most of them forget that they are still employees but in a higher position, and with a better pay compared to other stakeholders. The difference is that, they forget that the other stakeholders have a better skill compoared o them. However, they share similar characteristics (Dia, 2012). These characteristics include that they work under one roof, they are under same director, and can be sacked like any other employer. Therefore, there is need for respect in all organization in as much as the employees are concerned

Organizations Need to Respond to Employees’ Stakeholder Demands and Expectations

Organizations need to respond to employees’ stakeholder demands and expectations. This is because; the employees are the reason behind the daily operations of an organization. They are described as the force in motion which makes things to happen in an organization. Employees contain the moving ability, and the improve performance in a company (Adams, Brockington, Dyson & Vira, 2009). They are the reason behind sticking rules and regulations on a wall. They make sure that the organizations are worth to be called organizations. Therefore, nothing could be better without employees in organizations. Any expectation of employee should be responded to accordingly and ion time since any action taken by the employee as a result of failed or delayed response affects the organization largely.

Ethical behaviour of organisational employees and managers is essential for stakeholder management. You have been asked by the Human Resource Manager of XYZ Corporation to assist in developing an ethical organisational culture. With reference to course concepts and frameworks, outline the advice you would provide to XYZ Corporation in developing an ethical organisational culture.

In any organization, ethics are important especially when it comes to developing the culture of the organization. The organizational culture include being punctual in work, hard work with less or no supervision, Promotes when necessary, and paying employees at the right time (Armitage, Plummer,  Berkes, Arthur, Charles, Davidson-Hunt, & McConney, 2009). These are few examples of an organizations culture. They are necessary and essential when it comes to enabling smooth flow opf activities in an organization. When asked to give an advice concerning the development of an ethical organizational culture in XYZ Corporation, I would give it in the following outline

It is important to keep an organization moving. However the discipline of the stakeholders matters (Karlsen, 2009). This is because unity is the key to a better future and the smooth flow of activities in an organization. Therefore, all employees should be responsible and have self drive, to avoid conflicts. All stakeholders should take their duties serious and remember that the duties are the reason behind their existence in the organizations. As usual, every stakeholder should always be prepared to face a challenge, since not all the time that the organization will be on the right track intermesh of sales, or business. There are difficult times which call for the cooperation of the stakeholders. At such a time, all stakeholders should be accountable and available to offer any assistance in whichever way, to enable the rise of the organization (Freeman, 2009). For the organization to have as many customers as possible, the stakeholders must be willing to speak of its quality products, quality services and quality management. This helps in marketing the organization. Friends are also essential when it comes to promoting the culture of a company. They should be influenced by the stakeholders, to always use products from the organization. In addition, the stakeholders should be the topmost promoters of the organization, by simply utilizing the end product of the organization (Mostert,  Pahl-Wostl, Rees, Searle, Tàbara & Tippett, 2008). For smooth flow of events in an organization, the stakeholders should adhere to the rules and regulations of the company to the latter. The biggest rule should be anticorruption, openness and trustworthy. There are issues which have been facing many organizations today. Corruption is one of them. First, corruption makes an organization weak since everything can be done through corruption. In addition, corruption corrupts every stakeholder and the employees too, who work without fear or commitment, since they know that they can convince the managers with bribes. Any organization that entertains or practices corruption is corrupt, and cannot move on well. It is usually faced by many challenges. These challenges include lack of trustworthy indiscipline, poor time management, poor workers, poor performance, less end products which are low in quality at the same time, and less openness. Everyone in the organization is moist likely to become corrupt (Reed, Graves, Dandy, Posthumus, Hubacek, Morris & Stringer, 2009). This is because corruption is contagious, it becomes part and parcel of anybody who entertains it, and sways people away quickly. People think that through corruption, things will run smoothly. However they should remember that a time will come when the money for bribing the employers or the managers will be unavailable. At that state, the corrupt employee will be forced to leave their work, and move on to look for jobs, without courage. They are, addicted to corruption, and every time they try to make a step, their minds will ring with corruption

Developing an Ethical Organizational Culture

Respect is anther rule that is associated with organizational culture. It is usually a two-way traffic, since it occurs amongst people. Everybody is entitled to respect. However, self respect is important compared top any other form of respect (Murillo?Luna, Garcés?Ayerbe, & Rivera?Torres, 2008). One ought to respect himself to avoid being disrespected by others. As an employee, you must be willing to perform your duties without being corrected. However, be always ready for corrections, since human beings are prone to mistakes. We therefore learn through mistakes. However, we should conscious enough to avoid them whenever possible, since they might be used to define you in your absence. It is therefore important to be self disciplined, since self discipline attracts others to be disciplined too.

Being a role model is another tem used in the definition of organizational culture.  Everybody in an organization must be a role model. Being a role model means that one is self disciplined, time conscious, respectful, tolerant, and self driven? He or she is governed by principles, and is strong enough to avoid being swayed by negativity. He or she is positive, optimistic, courageous, and a man or woman of few words. This shows wisdom and understanding (Savage, Nix,Whitehead, & Blair,2016). Such people do not compromise, they are always straight to the pointy, and their conclusions are always precise. They always listen more and speak less, especially when it comes to giving ideas. They are the best advisors ever, and can have as many friends as possible, most of which are follows, but gossipers. However, everybody should be responsible when it comes to work, especially in an organization.

Managing the diversity of organisational stakeholders is complex and iterative. Select a Managing Stakeholders seminar of your choice and explain how this seminar has informed your understanding of stakeholder management.

According to seminar eleven, the following objectives are entitled to the following stakeholders. The first objective is to explore consumer expectations (Mason, Kirkbride, & Bryde, 2009). Consumers expect the economy to be friendly, and thus goods and services sold in the organizations of choice should be affordable. Prices should be, medium so as to encourage the consumers to buy, as well as to avoid the company from incurring losses.

Investors expect the business itself to be better all through. They therefore expect it to keep the environment conducive, by keeping the name of the organization (Pahl-Wostl, Craps, Dewulf, Mostert, Tabara & Taillieu, 2012). Secondly, the investors also expect the organization to manage risks, and avoid involving the customers whenever a risk occurs. They expect the organization to be responsible when it comes to generation of profits, and management of consumer demands and behavior. Investors are usually encouraged by hard work, patience, responsibility, consciousness and self drive (Mitchell, Agle & Wood, 2011). They keep distance to see whether an organization is working towards achieving its goal through the right way. The investors invest willingly to a business which shows effort, and concern. A business that is able to meet the demands of the increasing consumers, even when the economy is high, is the kind of business where investors invest willingly.

The main aim of a business is to make profits. Therefore, it must work hand in hand with the consumers to ensure that it meets the demands of the consumers. The consumers also have high expectations on the good or service to perform as expected (Timur, & Getz, 2008). They target quality, and quantity, since the right weight, or standard of measure goes hand n hand with the amount of good. Therefore, the consumers expect to get quality product from an organization, despite the economy type, since the business is there to cater for the needs of the consumers.

Corporations have a legal responsibility which discourages them from making false statements or giving misleading and incorrect information about their products of services. This means that a corporation must give the correct information, whether history, use, expiry date, or the ingredients of a product. This shows concern and care towards the consumers, who promote the cooperation. The law also forbids cooperation from making wrong statements during advertisements, which may lure the minds of the potential buyers. In addition, and product that is purchased by a consumer and affects them in one way or the other, is the problem of the cooperation. The cooperation is responsible of any danger incurred by the consumers in terms of harm. It should therefore take up the responsibility of competing the consumer, despite the condition. This may be done in accordance to the rules and regulations of the cooperation, or by a court ruling. There is no compromise in case of such cases since it is usually a matter of either losing or gaining (Brown, Potoski, & Van Slyke, 2009).

Consumers have a law that protects the m from harm, loss or danger. The organization should be aware of the rule, since they deal with human beings. Some products are very sensitive. For example, in case a consumer buys eggs and finds that some of them were broken or rotten, and then the organization should be willing to compensate the consumer. This happens because the consumer expected to get quality goods from the organization (Hill, & Jones, 2012). Though sometimes, there are products which the seller s cannot tell   whether they are good or not, it is advisable that they sell what they are sure of, and have confidence in its quality. In one way or the other, the consumers may tarnish the name of the institution, as a result of poor service (Carroll, 2015). This should be avoided in the highest note, since an institution is based on its name. Other products which should be handled with after include food items. These items should be sealed completely with a security seal to avoid contamination. Foods prepared in an organization should be cooked or baked under high rate of hygiene. Generally, cleanliness should be observed to avoid consumer doubts.

Consumers will always shift from ne organization to another, to make sure that equal price is maintained (Buysse & Verbeke, 2008). Prices on similar goods and services may differ depending with an institution, and that is why potential customers may offer to leave behind an item and purchase it in a different institution. That is accepted because customers are always right, and have the freedom to get either an item or services at the institution of choice.

Investors are usually aware of the profound impact that environmental, social and governance factors have on the long-term viability of companies in which they invest (Donaldson & Preston, 2011). Therefore they expect the institution they invest to have a better way of managing risk, which is keeping the data and records of how they spend funds invested in the company.  Any institution that has investors considered lucky since it prospers and moves on despite the challenges faced in institutions. Institutions that do not have investors face challenges; but can also get investors in the future, if they meet the requirements of the investors.

All institutions need to be ethical in terms of following rules and regulations, and respecting one another (Heikkila & Gerlak, 2009). However, they should be aware of the services they render to consumers as well as the information they feed to the potential customers. Ethics make up an institution, thus attracting investors. When investors see the openness of an institution, and its relation to consumers, then it willingly invests in that Institution. They help in the expansion of a business through provision of stock, offering training to employees, and offering promotions. Advertisements should contain accurate information on the items or services offered in an institution. This encourages the consumers or potential customers to create interest in the goods and services offered in the institution. Though advertising language may be tempting, lies are unethical, and may tarnish the good name of an institution.

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