Role of Stakeholder in Bringing Success to the Projects—

A Comparison between Construction Industries and Manufacturing Industries for Stakeholder Management



ACKNOWLEDGEMENT

I would like to take this chance for thanking my research facilitator, friends and family for the support they provided me and their belief in me as well as guidance they provided without which I would have never been able to do this research.

DECLARATION

I, (Your name), would like to declare that all contents included in this dissertation will stand for my individual work without any aid, and this dissertation has not been submitted for any examination at academic as well as professional level, previously. It will also be representing my very own views and not essentially those that are associated with the university.

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ABSTRACT

Stakeholder management is a significant area of strategic management in the contemporary management practices. This is because companies have to engage with multiple stakeholders for the smooth functioning of the business. In this study, we assessed the stakeholder management practices in the construction and automobile industry and held a comparative analysis between the two. It was revealed from the study on a general level, that on one point, managing for shareholders and the company's stakeholder go hand in hand: the purpose of the firm is to allow all components, or groups of stakeholder, to obtain maximum benefits based on their participation. The economic approach the firm makes this goal in terms of achieving full benefit of the parties to engage in joint production. The defenders of stakeholder management usually try to consider and balance the interests of each group, they must recognize that all these benefits result from the creation of wealth from the economy. Thus, the stakeholder cannot receive more benefits than those produced by economic activity. In short, the wealth must be created before distributed. However, two questions remain. The first is to how to better protect and manage, and serve the interests of each group of stakeholder. According to an economic approach, which is due to each group is a return on the assets it provides to the production common. In addition, each of these assets is accompanied by a governance structure that protects returns. The distribution of profit or wealth that created the firm is largely determined by the market. Thus, the main concern of governance is to ensure that a group receives what the market allocates. There are several ways to safety-riser performance of each group, one of them is based on management decision making. In the present system of corporate governance this way gives control to shareholders, making them the beneficiaries of the fiduciary responsibility of managers, while laying the wealth of shareholders (shareholder wealth) goal of the firm. Subsequently, the question is whether the management decision making is an appropriate means to best serve the interests of groups of non-shareholders or whether there are better ways to do this. The second question can be formulated as: What interests of each group that must be served and protected? Advocates ...