ASSIGNMENT

Organisations That Treat Their Stakeholders in a Fair and Equitable Manner and That Strive to meet their Reasonable Expectations are Likely to Experience High Levels of Performance

Table of Contents

Introduction1

Concept of Stakeholders1

Models of Stakeholders3

Theories of Stakeholders4

Performance and Motivation of Stakeholders5

Stakeholders Theories vs. Equity Theories6

Companies8

TESCO8

British Airways10

References14

Organisations That Treat Their Stakeholders in a Fair and Equitable Manner and That Strive to meet their Reasonable Expectations are Likely to Experience High Levels of Performance

Introduction

The report focuses on the analysis of Organisations that treat their stakeholders in a fair and equitable manner and that strive to meet their reasonable expectations are likely to experience high levels of performance. The main theme of the report is based on the concept of stakeholders with relation to the basic theories. The research maily discusses the Freeman theory of stakeholders. According to the models of stakedolder, the stakeholder model is an economics / business, and ethical model is an extension of the shareholder value approach in business. For Matthias Karmasin, it is but represents a viable way to incorporate aspects of ethical rationality in corporate governance.

The next section of the research based on the comparison of stakeholders theories with equity theories. Finally, the report discusses two organizations and their stakeholder strategies. The case study is based on Tesco plc and British airways. Both the organizations are well known because of their customer retention and stakeholder strategies. The conclusion of the report discusses the overview of entire report.

Concept of Stakeholders

McTaggart (2006) discusses the idea that companies are not only responsible to their shareholders (owners) but also to a number of parties involved in its operation is one of the main ideas within the concept of social responsibility (p.08). In this context, most of the models of social responsibility refer to the way that management should identify and involve stakeholders and the way that managers should identify measure and report on the impact of business activities in these parts. The origin of the concept of an interested party is in management theories that analyze corporate behaviour in terms of interests affecting, or affected by the activities of the corporation. Lawrimore (2001) said that, this theory is on the concept of the corporation as a type of organization, and especially the system of corporate governance. The term interested party (stakeholder) intended to be in contrast with the term shareholders (shareholder) (p. 10).

According to Marjorie (2001), the stakeholder theory of the distinction between different stakeholders, and acknowledged that some parties have successfully shared interests of enterprises and so one way or another, had a strong own risk similar to shareholders. It recognized the stakeholders can prevent a corporation achieve its goals. In both cases, the focus was more on corporations than on the needs of society. Edward (2007) discusses that, in terms of Social Responsibility practice, to involve stakeholders became the process by which the interests of society identified by the organization of business and became the form through which corporations could redefine or reinterpret their social responsibilities, on the basis of how ...