BUSINESS ASSIGNMENT

Assignment for Business Context

Assignment for Business Context

Stakeholder Theory

It is a concept of business ethics and organizational management that speaks to values and morals in managing or running an organization. Stakeholder theory was at first detailed in the book entitled “Strategic Management: A Stakeholder Approach” by Edward Freeman. This models and identifies the groups that are actually stakeholders of any corporation or business, and both recommends and describes the methods through which management be able to offer due regard to concerns and interests of such groups (Phillips, 2011, pp. 10-49) (Bender, 1990,, 8).

In the region of stakeholder management, revolutionary work was done by Freeman in 1984 in his book entitled “Strategic Management: A Stakeholder Approach”. In this book, he outlined the essential features of the concept of stakeholder. In addition to this he has also introduce the concept that corporation has stakeholders. Freeman, on the other hand, notes that, previously, an early scholar of stakeholder extended the concept of stakeholder away from such groups as customers and shareholders (Bender, 1990,, 8).

Freeman's Strategic Management: A Stakeholder Approach has explained as a powerful ways of recognizing the firm within its surroundings. This move toward is efficiently intended to widen the vision of management, its responsibilities and roles away from the profit maximization purpose and stakeholders recognized in an input-output model of the firm, to include the claims and interests of the groups that are not stakeholders as well. Preston and Donaldson detailed that the model of stakeholder requires that all groups or persons with legal interests participating in a venture accomplish so to get advantages and there is no predetermined priority to a set of benefits and interests over another (Phillips, 2011, pp. 10-49). As a result, stakeholder theory rows that there are many other external constituencies that are involved besides stockholders, including, community groups, communities, trade associations, trade unions, governmental bodies, environmental groups, associated corporations, prospective customers, prospective workers and the public in general, that must to be there in consideration (Carroll, 1997,, 22).

Stakeholder Theory on Eurotunnel

Eurotunnel operates and manages the Channel Tunnel from England to France. The company runs the shuttle services of cars and earns profits on other trains passing via tunnel (Carroll, 1997,, 22).

In an assessment of the project of Channel Tunnel, Lemley (1995) affirmed that the communication is a key constituent for a winning project. To attain any type of communication relevant to this, the project management wants to have knowledge of with whom it be supposed to communicate. An analysis of stakeholder to recognize the stakeholders along with their arguments on project is necessary to choose and form approaches in a management process of external stakeholder.

Communication is no doubt an important element of the project management works to efficiently manage the interests of stakeholder, internal and external as well; Lemley (1995) affirmed that an excellent communication is an important element for a winning project, on the basis of his experience of the project of Channel ...