Does a Shareholder view of ethics suggest that you retain mission critical people at the expense of less critical employees?

Answer 1

By the end of this section, you will be able to:

Identify the factors that affect stakeholder prioritization

Explain why priorities will vary based upon the interest and power of the stakeholder

Describe how to prioritize stakeholder claims, particularly when they conflict

If we carry the idea of stakeholder to the extreme, every person is a stakeholder of every company. The first step in stakeholder management, the process of accurately assessing stakeholder claims so an organization can manage them effectively, is therefore to define and prioritize stakeholders significant to the firm. Then, it must consider their claims.

Given that there are numerous types of stakeholders, how do managers balance these claims? Ethically, no group should be treated better than another, and managers should respond to as many stakeholders as possible. However, time and resource limitations require organizations to prioritize claims as stakeholder needs rise and fall.