Stakeholder Marketing

Stakeholder Marketing

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DateStakeholder Marketing

Task 1: Summary of Audit Findings

Stakeholder theory is one of the key theories in corporate governance literature. It holds that an organization should recognize the interests of a wider range of stakeholders than shareholders alone. Stakeholder theory has grown in prominence over the past 25 years following the publication of the seminal text by R. Freeman in 1984, Strategic Management:

A Stakeholder Approach

Within the past decade, there have been a number of debates to further the use of stakeholder theory as a framework for understanding organizational governance. These are partly in response to criticisms that if managers have a responsibility to a wide range of stakeholders, then they are effectively accountable to no one. First, R. K. Mitchell et al. examine the issues that managers should pay attention to through stakeholder definition and salience (Homburg, 2009, 64).

They focus on the stakeholders that managers actually care about, based on the attributes of power, legitimacy, and urgency. Within strategic management literature, managing multiple stakeholder relationships is seen as critical to long-term competitive advantage. M. M. Parent and D. L. Deephouse investigated how managers from two major events (The Jeux de la Francophonie and the Pan American Games) identified and prioritized stakeholders. Within the management of these events, multifaceted power was the key indicator for recognition. Their findings also revealed that the seniority and role of managers moderated the identification of stakeholders; in effect, the more experienced managers were more adept at identifying relevant stakeholders (Handelman, 2010, 27).

Stakeholders of a company are its major assets and they are known for their prime contribution and support for a company. If the stakeholders of a particular company which is this case will be Toyota are considerably consistent and reformed, there is no potential damage and threat which an association will have to go through. Most of the times, the resources and investors of the company take notice and significant research activities in determining how the stakeholders are involved with a company. An overall program of the company is relying on how to stakeholders turn out to gain their profits and what course of actions they design for such cause (Selnes, 2003, 80).

Until Toyota developed back in 2009, Ford and General Motors used to have a tough competition for the automotive manufactures and producing engines that are still a class apart. With gradual progression of time, Toyota took over the reign of manufacturing and car retailing services because of its utmost features and brand recognition (Homburg, 2009, 38).

It is becoming increasingly clear that businesses have a need to consider sometimes diverse stakeholder interests in their marketing and operations. You may be thinking that this will take the focus away from the all-important customer - who should remain at the centre of attention. In fact, during the1990s, a school of thought emerged (actually several related ones) that to satisfy customers properly, and to be successful, businesses needed to broaden the relationships they had with suppliers, employees, investors, sales channels etc., and to harness ...