The paper "The Concept of Accountability to Stakeholders as an Obligation of Management" is a wonderful example of a report on management. The concept of stakeholders has indeed achieved widespread popularity among many organizations across the globe. Increasing numbers of clientele in organizations have significantly advanced the centrality and engagement of stakeholders in business, social, and environmental performance of the organization. Constructive stakeholder relationships open up a business to a vast number of opportunities while poor relationships risk the survival of the organization. Therefore, companies have realized the importance of actively establishing and sustaining relationships with stakeholders and the larger community in a bid to succeed through their projects (Laplume et al, 2008).
The purpose of this paper is to obtain a conceptual understanding of stakeholders. It begins by giving definitions and typologies of stakeholders which have been discussed widely in the literature. The report further discusses the concept of accountability to stakeholders as an obligation of management. Besides that, it will give reasons why the government consults stakeholders on particular issues that concern them and the organization. Lastly, the report will give a stakeholder analysis of the University of Sidney. Definitions and typologies of stakeholdersAn overview of the literature on stakeholders creates a confusing impression about concepts underlying stakeholders.
This ambiguity particularly regards concepts of the stakeholder theory, the stakeholder model, stakeholder analysis, stakeholder management, and the stakeholder approach. Moreover, the stakeholder theory has suffered from numerous imperfections and shortcomings owing in part to ambiguity, vagueness, and breadth of the terms stakeholders and partly due to its wide-ranging intuitive appeal, factors that have contributed to massive critiques. Similar sentiments have been expressed by Symons (2008) who maintains that it is difficult to conclusively define the term since it is context-specific and idiosyncratic. Nevertheless, there are several definitions that have been developed to elaborate on the term stakeholders.
The term stakeholder was first defined by Freeman (1984) who stated that “ it is any group or individual who affects or is affected by the achievement of the organization’ s objectives” .
Freeman, E., (1984). Strategic management: A stakeholder approach. Boston: Pitman.
Friedman, A., & Miles, S., (2006). Stakeholders: Theory and Practice, Oxford University Press, Oxford.
Hall, J., & Vredenburg, H., (2005). Managing Stakeholder Ambiguity. MIT Sloan Management Review. 47 (1): 11-13.
Heene, A., & Dentchev., N., (2006). A strategic perspective on stakeholder management. Accountancy & Bedrijfskunde, 26 (1): 25-34.
Laplume, A.O., Sonpar, K., and Litz, R.A. (2008). “Stakeholder theory: Reviewing a theory that
moves us”, Journal of Management, vol. 34 no. 6, pp. 1152-1189.
Symons, R. (2008). Analyzing, evaluating and reporting on the student experience at the University of Sydney: responding to the changing demands of stakeholders. Sydney: University of Sydney.
Venkataraman, S., (2002). Stakeholder Value Equilibrium and the Entrepreneurial Process. Business Ethics Quarterly, The Ruffin series: Special issue 3: 45-58.