Corporate Governance and Ethical Responsibility



Corporate Governance and Ethical Responsibility

Internal and External Stakeholders

Stakeholders are present in each health care organization, and a growing body of literature spotlights on distinguishing the important stakeholders of the organization and assessing methods for managing them. Broadly speaking, stakeholders are those organizations, individuals, or groups who entail a political, financial, ethical, and/or political stake (interest) within the actions and decisions of a specific organization. The stakeholders of any organization endeavor of affecting those decisions for influencing the organization's direction with the intention that it is unswerving with meeting the stakes (i.e., priorities and needs) of the stakeholders (Savage, Taylor, Rotarius & Buesseler, 1997, Pp. 8). The head or the president of any organization is obliged to run the entity in such a way that it satisfies the interests of the stake holders. In the given case the organization is “Universal Human Care Hospital” and the person leading the hospital is Dr. DoRight who is the principle of this hospital.

For any organization, there are two types of stakeholders:

Internal stakeholders, and

External stakeholders

Internal stake holders are those, which function more or less completely in the normally approved 'bounds' of the organization and usually comprise of non-professional, management and professional staff. The administration of the organization tries to run these internal stakeholders by giving adequate incentives for gaining persistent contribution from these stakeholders (Savage, Taylor, Rotarius & Buesseler, 1997, Pp. 8). In the given case of “Universal Human Care Hospital”, Dr. DoRight is the administration as he is the president of the hospital and is supposed to run the hospital and all the internal stakeholders of the facility.

External stakeholders are usually of three kinds:

Those who have a particular interest within the organizations functioning;

Those who offer the organization with inputs, and

Those who are competing or in some cases regulating the organizations

The external stakeholders of the organizations are normally based on criterions like the level of mutual dependence amid the organization and the stakeholder, the comparative strength of each, etc (Savage, Taylor, Rotarius & Buesseler, 1997, Pp. 8). In the given case of “Universal Human Care Hospital”, the external stakeholders could be numerous as the organization is a healthcare facility and deals with numerous stakeholders who are either dependent on the facility or the facility depends on them.

Healthcare facilities do not deal with only few or one stake holders. Instead, the executives of healthcare, in our case Dr. DoRight the Principle of “Universal Human Care Hospital”, would be required to deal with a portfolio of stakeholders on a regular basis. However, the three internal and external stakeholders that Dr. Doright might have to deal with on daily basis at the hospital include:

Internal Stakeholders

External Stakeholders

Board committee members

Patients

Public Health Strategists

Quality assessors

Director of Nursing

Local Authority/council

Potential Conflicts of Interest

There are various potential conflicts of interest, which might exist amid duties of loyalty owed to the internal stakeholders and external stakeholders, as both have dissimilar interests within the health care facility. For example, the shareholders who have their investments in the healthcare facility would be interested ...