BUSINESS ENVIRONMENT

Key Objectives of Organization and Influence of Stakeholders

Table of Content

Introduction3

Business Environment: Identification of Mission, Values: How Organisations Can Achieve4

Business Environment: Stakeholder Theory in Organizational Ethics5

Identification7

Distribution9

Procedure12

What Are the Effects of Stakeholder Management?14

Corporate Responsibility and Stakeholder Theory16

Corporate and Stakeholder Responsibility17

Conclusion21

REFERENCES/BIBLIOGRAPHY22

Key Objectives of Organization and Influence of Stakeholders

Introduction

The primary focus of stakeholder theory has been the proposition that firms have a moral responsibility to take into account the interests of stakeholders other than just stockholders. Given the focus on the corporation within organization studies, this emphasis in theorizing is understandable. The emphasis on corporate responsibility to stakeholders has not to date been balanced by a complementary focus on the responsibilities of stakeholders. Though some models within the stakeholder literature portray a two-way relationship between the firm and the stakeholder, writers predominantly argue that firms are responsible for taking into account stakeholder interests, without noting the reciprocal moral responsibility of stakeholders to consider the interests of the firm in their actions and policies. A focus on stakeholder responsibility compels theorists, corporations, and stakeholders to direct greater attention to the importance of the responsibilities stakeholders have to firms and to other stakeholders who are part of the collective enterprise.

Business Environment: Identification of Mission, Values: How Organisations Can Achieve

Business environment is the process of starting up and developing a business is not just an adventure, but also a real challenge. In order to help entrepreneurs with this, it is essential to create a favourable business environment. Ensuring easier access to funding, making legislation clearer and more effective and developing an entrepreneurial culture and support networks for businesses are all instrumental as far as the setting up and growth of businesses are concerned.

However, creating a favourable business environment does not mean simply improving the growth potential of businesses. It also means turning Europe into a place in which it is advantageous to invest and work. In this way, the promotion of corporate social responsibility is contributing to making business in Europe more attractive. Small and medium-sized enterprises (SMEs) make up 99% of European businesses. Their small size makes them very sensitive to changes in the industry and environment in which they operate. It is therefore vital for their well-being to be a focus of political attention.

Business Environment: Stakeholder Theory in Organizational Ethics

As stated above, stakeholder theory can be looked at as a marriage of two somewhat different theoretical enterprises—ethical and empirical. The first is the search for an ethics-based stakeholder theory. From its onset, in the early 1990s, this project started with several attempts by Freeman and other like-minded philosophers to formulate a so-called normative core from which to deduce the moral obligations of the company in dealing with its stakeholders. Many scholars thus sought to establish a clear philosophical foundation on which to ground statements about how companies should treat their stakeholders. Almost every major ethical theory—utilitarianism, property rights, feminist ethics, and Kantian deontology—offered some basis for relevant arguments.

At its heart, the quest for a normative core for stakeholder theory has clear roots in the more ...