What is the importance of stakeholder management?4 answersStakeholder management plays a crucial role in organizational success by influencing institutional culture, compliance with policies, and value creation. Stakeholders are vital for value creation in democratic societies, emphasizing their significance in business and public administration. Empirical evidence shows that effective stakeholder management positively impacts organizational performance and value creation, highlighting the need for strategic engagement with stakeholders. Integrating stakeholder concepts into business strategies, management accounting, and budgeting enhances understanding of the value a business provides, especially in dynamic market conditions. Overall, stakeholder management ensures alignment with policies, enhances organizational performance, and fosters value creation by establishing positive relationships with all relevant parties.
What are the impacts of stakeholder orientation?5 answersStakeholder orientation has multifaceted impacts across various organizational aspects. Firstly, it positively influences employee job satisfaction by enhancing perspective-taking. Secondly, it leads to increased corporate tax avoidance, especially in resource-constrained firms, benefiting employees at the expense of secondary stakeholders like the government. Additionally, stakeholder orientation aids in retaining human capital during mergers and acquisitions, delaying the departure of corporate scientists in acquiror firms. Moreover, it affects bank payout policies, with companies in states enacting constituency statutes experiencing reduced total payouts, particularly in share repurchases, especially for banks with significant implicit claims and agency conflicts. Lastly, stakeholder orientation influences firms' technological investments, with more stakeholder-oriented firms investing in less general technologies to mitigate stakeholder concerns, particularly in uncertain industries.
What is stakeholder approach?5 answersA stakeholder approach involves engaging various individuals or groups who have an interest or concern in a particular project, organization, or initiative. This approach aims to incorporate the perspectives, feedback, and involvement of stakeholders throughout the development, execution, and evaluation stages of a project. Stakeholders can include individuals, communities, organizations, or institutions that may be impacted by or have an interest in the outcomes of the endeavor. By actively involving stakeholders, projects can benefit from increased effectiveness, validity, and quality. Stakeholder theory, often used in organizational management, provides a framework for understanding and managing these interactions, ensuring that the needs and interests of all relevant parties are considered. Effective stakeholder engagement is crucial for successful implementation and sustainability of interventions, especially in research and public health initiatives.
What is the theory of stakeholder salience?5 answersThe theory of stakeholder salience suggests that certain stakeholders have power, legitimacy, and urgent claims that influence a corporation's actions and decision-making process. These stakeholders can include customers, shareholders, employees, government, NGOs, media, and the community. Stakeholders with power, such as government or voting power, are perceived as having enough pressure to make corporations engage in corporate social responsibility (CSR) strategies and activities. Stakeholder salience theory also emphasizes the importance of identifying and prioritizing key stakeholders, as different stakeholders may have varying levels of power over sustainability disclosure. Additionally, the theory highlights the role of stakeholders in influencing corporate responses during crises, such as the COVID-19 pandemic, where corporations may address multiple stakeholders' interests, including customers, shareholders, community, suppliers, and employees. Overall, stakeholder salience theory provides a framework for understanding the influence and importance of different stakeholders in shaping corporate behavior and decision-making processes.
What Is stakeholder theory?4 answersStakeholder theory is a profound theory in business ethics and organizational management that takes into account the benefits of various stakeholders, such as customs, manufacturers, and other groups, in order to contribute to the long-term and sustainable development of corporations. It challenges the traditional shareholder primacy theory, which focuses solely on the benefits of shareholders and can lead to short-term and financialization issues. Stakeholder theory aims to avoid exploitation and create win-win relationships by considering the interests of all stakeholders. It has been applied in various contexts, including strategic management, organizational performance, sustainability, and stakeholder management. Stakeholder theory is particularly relevant in addressing societal problems and humanitarian issues, where the opinions and expectations of different stakeholders may differ. In recent years, stakeholder theory has gained attention in the field of strategy research, leading to the development of new streams of research that explore the economic and moral nature of relationships in and around organizations.
What is the role of stakeholder management in the success of a project?5 answersStakeholder management plays a crucial role in the success of a project. Effective stakeholder management involves identifying and engaging stakeholders, communicating with them properly and frequently, and considering their interests and relationships. It also includes involving stakeholders in project planning, risk management, and decision-making processes. Stakeholder management acts as an intermediary between the implementation of building information modeling (BIM) and project performance, ensuring that BIM is synchronized with stakeholder needs and dynamics. Inclusive leadership, combined with effective stakeholder relationship management, positively impacts project success. However, research shows that small construction companies often have a low level of maturity in managing project stakeholders, despite the importance of stakeholder management for project success. Therefore, prioritizing stakeholder management and incorporating it into project planning and execution is essential for achieving project success.