Role of Stakeholder Paper – Research Paper Example

Role of Stakeholder Introduction The term stakeholders refers to persons or groups who rely on an organization to attain their goals while the organization depend on them for support and other aspects such as governance. These include people who are likely to benefit from company’s operations hence work towards the success of the company. Stakeholders thus include persons who play part in the running of a company (shareholders and employees) in addition to other persons who may be concerned in the company’s activities but do not own it. Generally, stakeholders are all entities who influence or are affected by the operations and decisions of an organization. Stakeholders are the individuals or groups that share the benefits and risks of a company. They are thus and are affected by management decisions. However, some stakeholder may not be in support of the companies decisions depending on the effect such decisions may have on them. The stakeholders are thus crucial and influence the management of a company. This paper focuses on the role of stakeholders in implementing a quality management process. The chief stakeholders in any business include managers, shareholders, company employees, government, communities, clients, trade unions, and other companies or organizations. Employees are important contributors in decision making thus their opinions are crucial in running of a company or business (Jackson, Sawyers, & Jenkins, 2008). Issues such as employee’s safety and compensation are important aspects that must be considered for effective management. The community is an important stakeholder who is interested and influence company aspects such as recruitment process, effect of companies operations on environment, as well as the contribution of the company to the community. For example, a mining company would have to consider the effects such an activity may have on the surrounding communities in addition to the benefit the communities will reap (Foster, 2012; Jackson, Sawyers, & Jenkins, 2008). Trade union’s role in implementation of quality management in a company since they influence company decisions regarding employees security, compensation as well as the recruitment process. Shareholders are the most important component of a company and play a crucial role in implementation of management process since they are interested in the welfare of the company in which they have invested. They also partake in making of some company decisions. Customers or clients are another important stakeholder who determines how a company should be managed. This is because customers influence management aspects pertaining to quality, ethics, as well as organizational values. For example, a food processing industry will have to include the major customers in management aspects regarding the quality to ensure that the product made meet their needs. The government is a critical stakeholder in any organization, which influence different managerial aspects hence management. The government regulates features such as taxation and company legislation hence the quality of management (Jackson, Sawyers, & Jenkins, 2008). Other organizations are also important entities that affect the management of a company. They could be the competitors or the distributors. A good example of an organization where other organization are important stakeholders is a manufacturing company where the retailers involved in distributing company’s product and thus influence management decisions (Foster, 2012; Jackson, Sawyers, & Jenkins, 2008). References Foster, T. (2012). Managing Quality: Integrating the Supply Chain. New York: Pearson Education, Limited. Jackson, S., Sawyers, R., & Jenkins, G. (2008). Managerial Accounting: A Focus on Ethical Decision Making. Stamford: Cengage Learning.